PepsiCo raises stake in Celsius

PepsiCo Inc is increasing its stake in Celsius Holdings Inc in a $585 million deal that will boost distribution of some of the energy-drink maker’s popular beverages.

- MATTHEW MONKS CRYSTAL TSE

PepsiCo is buying convertible preferred stock in Celsius that will boost its ownership to 11%, according to an announcement Friday, confirming a Bloomberg News report. As part of the transaction, Celsius will acquire PepsiCo’s Rockstar Energy brand in the US and Canada.

Celsius’ recently acquired femalefocused energy drink Alani Nu will move to the PepsiCo distribution in those two countries as well in a bid to accelerate its growth by increasing retail availability. The moves mean Celsius will be the strategic energy lead for PepsiCo in the US, managing the Celsius, Alani Nu and Rockstar Energy brands, while PepsiCo will lead distribution for the Celsius portfolio in that market.

“Celsius Holdings now becomes the strategic energy drink captain for Pepsi in the US,” Celsius Chief Executive Officer John Fieldly said in an interview.