Hold up, wait a minute! Isn’t there a Newtonian law or something that says quarterly revenue can only go higher with Celsius energy drinks? Celsius Holdings (NASDAQ: CELH) had quarterly revenue of $265.7 million, which was down 31% YoY. Believe it or not…the last time Celsius Holdings had negative YoY revenue growth was in the first quarter of 2016 when the energy drink brand was generating around $4 million of quarterly revenue. According to Circana last 13-week data, CELSIUS accounted for 16% of all energy drink category growth YoY in the third quarter of 2024. In addition, Celsius grew market share slightly to 11.8% and is now securely the third-largest energy drink brand in the category. And I don’t want gloss over this accomplishment…because it’s the first time in over a decade that an energy drink not named Red Bull or Monster Energy has had a 10% share in the U.S. market. Celsius energy drinks has seen massive growth in convenience stores, foodservice (e.g. fast food restaurants), mass retailers like Walmart, the club channel in retailers like Costco, and the Amazon marketplace. Additionally, the early international market development groundwork starting to formalize with CELSIUS extending its relationship with Suntory Beverage & Food and also the first major international market expansion under the PepsiCo umbrella (i.e. Canada). It's my opinion that international expansion presents significant opportunity for incremental growth over the next three to five years. With Celsius at basically full distribution now…the TDP growth will have to come from increased items carried per store. Going forward, Celsius will increase items per store through a combination of product strategies like flavor, format, pack size, and variant expansion. Additionally, CELISUS will continue scaling up the new Essentials lineup that has exceeded the company’s expectations. Moreover, they will seek more store placements like leveraging cold display activity in Celsius-branded coolers. While the U.S. energy drinks market has never been bigger than right now, competition within the category has never been greater (with C4 Energy, GHOST, and Alani Nu continuing to push market leaders). Then, you have categorical growth rates slowing and macroeconomic factors pressuring same-store sales of the largest convenience store chains. Finally, I'll breakdown a collection of categorical acquisitions that directly (and indirectly) impacted Celsius Holdings...which includes the recent news that Celsius acquired Big Beverages Contract Manufacturing, Keurig Dr Pepper (KDP) acquiring GHOST, and Molson Coors acquiring ZOA Energy.

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