Celsius Holdings has deepened its partnership with PepsiCo in a deal that will see the functional energy drink maker take on a wider portfolio and a more prominent strategic role in the US market.

PepsiCo first purchased an 8.5% stake in Celsius in 2022, paying $550 million through a preferred stock deal. Under the latest agreement, PepsiCo will acquire $585 million in newly issued convertible 5% preferred stock in Celsius, increasing its ownership to around 11% on an as-converted basis and securing the right to nominate an additional board member.

Celsius will take over the US and Canada rights to the Rockstar Energy brand from PepsiCo, while PepsiCo retains ownership of Rockstar internationally. The company will now serve as PepsiCo’s “strategic energy lead” in the US, overseeing Celsius, Alani Nu and Rockstar Energy brands. PepsiCo will handle distribution for all three labels in the US and Canada.

The deal also transfers Alani Nu, acquired by the US food and drink giant in February 2025, into PepsiCo’s North American distribution system, expanding its retail and foodservice presence.

Celsius said adding Rockstar Energy will help broaden its offering to appeal to consumers who prefer traditional energy drink formats, complementing the modern positioning of Celsius and Alani Nu.

John Fieldly, chairman and CEO of Celsius Holdings, said: “Stepping into the role of PepsiCo’s strategic energy drink captain in the US is expected to be a pivotal milestone in our journey to shape the future of modern energy and grow our brands within a leading beverage distribution system".

"With a proven functional beverage portfolio and a stronger long-term partnership with PepsiCo, we believe that Celsius Holdings is well-positioned to deliver greater innovation, sharper execution and sustained brand growth. Together, we will reach more people, in more places, more often, with a total energy portfolio that offers options for every consumer and creates greater value for all our stakeholders.”

Ram Krishnan, CEO of PepsiCo Beverages US, added: “This agreement marks the next step in PepsiCo reshaping its brand portfolio to position us for long-term growth. Energy is an important growth category, and we believe this move with our partner Celsius creates a stronger multi-brand energy portfolio that is better positioned to serve different consumer cohorts. This transaction creates an aligned incentive structure for both parties to bring their individual expertise to better compete in the energy category.”

The companies said the arrangement will enable a unified commercial strategy, streamline planograms, prioritise SKUs and expand geographic reach across retail and foodservice channels.