Celsius Holdings announced that more than 80% of its Alani Nu U.S. direct‑store‑delivery (DSD) business has been moved into PepsiCo’s distribution network as of December 1, 2025. The milestone was disclosed on December 5, 2025 and marks a key step in the company’s platform strategy to eliminate dual distribution costs and fully integrate Alani Nu into PepsiCo’s 500,000‑store network.
The transition leverages PepsiCo’s extensive logistics infrastructure to streamline Alani Nu’s supply chain, reduce handling and transportation expenses, and increase product availability. Management estimates that the integration will unlock approximately $50 million in run‑rate synergies over the next two years, primarily through lower distribution costs and improved inventory management. The move also positions Alani Nu to benefit from PepsiCo’s scale, which is expected to accelerate margin expansion as the brand’s lower‑margin profile is optimized within a more efficient supply chain.
While the synergy projection signals strong long‑term upside, executives have cautioned that the near‑term period may be noisy. The company’s Q3 2025 earnings release highlighted a $246.7 million distributor termination cost that PepsiCo is funding, resulting in a neutral cash impact for Celsius. Investors have expressed concern that the integration process could temporarily pressure margins and affect guidance for the upcoming quarter, even as the company’s overall revenue trajectory remains robust.
CEO John Fieldly emphasized that the milestone “strengthens our partnership with PepsiCo and positions Alani Nu for broader availability across more moments in consumers’ lives.” He added that the company remains focused on disciplined execution and that the integration will ultimately support long‑term growth and profitability.
Alani Nu’s acquisition for $1.8 billion (net $1.65 billion) closed on April 1, 2025, and the company’s partnership with PepsiCo was expanded in August 2025 to include distribution for Celsius, Alani Nu, and Rockstar Energy. The combined portfolio now holds a 20.2% share of the energy beverage category, up 25.5% in the 12 weeks ending November 23, 2025, outpacing the category’s 13.7% growth. The integration of Rockstar, expected to complete in the first half of 2026, will further consolidate Celsius’s market position.
The company projects full integration of Alani Nu into PepsiCo’s network by the end of Q1 2026, with the Rockstar brand following shortly thereafter. Management remains confident that the combined operational efficiencies and expanded distribution will drive revenue growth and margin improvement, while acknowledging that short‑term integration costs may create temporary volatility in earnings guidance.
Overall, the 80% completion milestone represents a significant operational achievement that aligns with Celsius Holdings’ strategy to scale its portfolio through strategic partnerships and cost‑efficient distribution. The company’s focus on disciplined execution and its partnership with PepsiCo are expected to deliver sustained value to shareholders over the long term.
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