Billion-Dollar Vibes Only. But does CELSIUS have what it takes to jump either Red Bull or Monster Energy in the next several years? Celsius has now been fully integrated within the PepsiCo distribution system now for the last year and also fully integrated into PepsiCo’s annual planning cycle. Celsius Holdings (NASDAQ: CELH) had quarterly revenue of $347 million, which was up 95% YoY. More importantly, Celsius Holdings smashed through the billion-dollar mark in its full-year revenue numbers. In 2023, the energy drink brand generated $1.32 billion in revenues…which was up a staggering 102% YoY. According to IRI last 52-week data, Celsius was the number one brand driver of unit and sales growth in the energy drink category. Celsius was responsible for 31% of the category growth, driving $1.09 billion in incremental sales. In addition, according to the trailing 4 weeks of IRI SPINS all tracked channel data for the period ending December 31, 2023, Celsius is now securely the third-largest energy drink brand in the category. Its market share went from 4.9% in the third quarter of last year to 10.5% now. 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 saw 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. CELSIUS is now the best-selling energy drink on Amazon and also number one energy drink brand on Instacart grocery marketplace. So, it’s safe to say that CELSIUS is the official energy drink of the Internet Generation. Additionally, the early international market development groundwork starting to formalize with CELSIUS forming a new relationship with Suntory Beverage & Food and also saw the first major international market expansion under the PepsiCo umbrella, as sales and distribution activity in Canada began in December 2023. 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. Because while the average items carried per store has increased exponentially since the PepsiCo partnership…it still lags Monster and Red Bull considerably. Going forward, Celsius will increase items per store through a combination of product strategies like flavor expansion, scaling the new Essentials lineup, and reintroducing iterated line extensions like fizz-free. Additionally, they will seek more store placements like leveraging cold display activity in Celsius-branded coolers. Finally, I recall a "called shot" by Celsius Holdings CEO John Fieldly three years ago and explain why I wouldn't bet against his crystal ball predictions as “the energy drink category is now a 3-team race.”

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