Celsius Holdings Makes a Power Move—Snaps Up Alani Nu in a $1.8 Billion Deal, Stock Skyrockets 27%

Key Highlights

• Celsius Holdings (CELH) acquires Alani Nu for $1.8 billion, expanding its footprint in the energy drink and wellness space.
• Shares surge 27%, hitting $32.44, as investors rally behind the bold acquisition.
• Revenue for 2024 climbs to $1.36 billion, but profitability takes a hit as costs rise.

Celsius Goes Big—Alani Nu Acquisition Changes the Game

Celsius Holdings just made a game-changing move in the energy drink market, snapping up Alani Nu for a whopping $1.8 billion in a mix of cash and stock. The deal, expected to finalize in Q2 2025, is more than just another corporate acquisition—it’s a strategic punch aimed directly at the energy drink giants, Red Bull and Monster.

Alani Nu, a fast-rising, female-focused brand, has built an impressive business targeting Gen Z and millennial consumers with energy drinks, protein shakes, and wellness products. The acquisition could position Celsius as a dominant force in the booming health-conscious beverage industry.

And Wall Street loves it. Celsius stock erupted 27%, breaking through resistance and climbing to $32.44, a massive leap from its previous close of $25.53.

Why This Deal Matters

It’s All About Market Share

Celsius has been on a tear, capturing 11.8% of the U.S. energy drink market, up from just 5% a few years ago. Alani Nu, with its 3.6% market share, might seem like a smaller player, but in a category where every percentage point matters, this puts Celsius in striking distance of Monster (27.7%).

By bringing Alani Nu under its wing, Celsius aims to expand its retail footprint, dominate better-for-you energy drinks, and leverage Alani Nu’s success in functional wellness products.

Revenue Up, But Profits Under Pressure

Celsius reported $1.36 billion in 2024 revenue, a 3% increase from the previous year, but here’s where things get interesting—profits are sliding.

• Adjusted EBITDA: $255.7 million (-13%)
• Net Income: $145.1 million (-36%)

The culprit? Rising costs—marketing, distribution, and international expansion have squeezed margins.

That’s where Alani Nu could be a game-changer. If Celsius plays this right, it could boost topline sales while streamlining costs across its supply chain. The company expects to unlock $50 million in cost synergies over the next two years.

The PepsiCo Factor

Remember, Celsius already has a distribution deal with PepsiCo, giving it unmatched access to shelves across the U.S. The Alani Nu acquisition could supercharge this advantage, flooding retail stores, gyms, and wellness markets with products that consumers are already buying.

This isn’t just about selling more cans—it’s about building an energy lifestyle brand.

Can Celsius Take on Monster & Red Bull?

Let’s be real—Monster and Red Bull aren’t going anywhere. These two juggernauts hold 64% of the U.S. energy drink market, and Monster just reported a 14% earnings bump ahead of its Feb. 27 report.

But Celsius isn’t trying to take them down overnight. Instead, it’s carving out a high-growth niche—zero sugar, health-conscious energy, tapping into consumer trends that Monster and Red Bull have ignored for too long.

💡 The playbook is clear:

✔ Expand into international markets (already up 37% YoY)
✔ Capture Gen Z and Millennials who want “functional” energy drinks
✔ Leverage Alani Nu’s popularity in wellness and fitness markets
✔ Maximize PepsiCo distribution for nationwide retail dominance

Investor Outlook: What’s Next for CELH?

🚀 Bullish Case

✔ Alani Nu expands Celsius' total market share in energy and wellness drinks
✔ Revenue growth potential hits $2 billion with the acquisition
✔ Synergies with PepsiCo will accelerate distribution and cost efficiencies
✔ Celsius’ growth remains industry-leading

⚠ Bearish Risks

❌ Integration challenges – acquisitions don’t always go smoothly
❌ Declining profitability – costs must be controlled
❌ Valuation concerns – after a 27% surge, is there more room to run?

Final Thoughts: Celsius Is Playing for the Long Game

Celsius Holdings is not just another energy drink company—it’s shaping the future of the industry. The $1.8 billion Alani Nu acquisition puts it on a trajectory to dominate health-conscious energy drinks, shaking up a market long controlled by Monster and Red Bull.

Stock is up 27%—but can it keep the momentum? The next test will be Q1 earnings in May 2025 and how well Celsius integrates Alani Nu into its ecosystem.

🔹 Investors are clearly betting on Celsius’ growth story—now it’s up to the company to deliver.