CELSIUS® to Expand to Australia and New Zealand

Rhea-AI Summary

Celsius Holdings, Inc. (CELH) partners with Suntory Oceania to expand into Australia and New Zealand, aiming to grow their global sales and distribution network. The company plans to introduce their CELSIUS energy drinks to these new markets, leveraging Suntory Oceania's manufacturing, sales, and distribution capabilities. The strategic partnership is expected to drive international growth and enhance consumer reach.

Market Research Analyst

The expansion of Celsius Holdings into Australia and New Zealand represents a strategic move to tap into the energy drink market in these regions. The partnership with Suntory Oceania is pivotal as it leverages the existing distribution and manufacturing capabilities of a well-established beverage company. This collaboration could potentially streamline market entry and scale operations efficiently, reducing the typical barriers to entry that new products face.

Energy drinks have seen a global surge in popularity, particularly among younger demographics who are drawn to the promise of increased energy and enhanced performance. The market is competitive, with a mix of global giants and niche players. Celsius's positioning as a functional beverage with health benefits may resonate with health-conscious consumers in Australia and New Zealand, where there is a growing trend towards wellness-oriented products.

While the immediate financial impact of this expansion may not be significant, given the time required to establish brand presence and consumer loyalty, the long-term growth prospects could be substantial. It is important to monitor consumer reception and the effectiveness of marketing strategies in these new markets to gauge the potential impact on Celsius's revenue and market share.

Financial Analyst

The announcement by Celsius Holdings regarding its expansion into the Australian and New Zealand markets is likely to be received positively by investors, as it signals growth and the pursuit of new revenue streams. The choice of Suntory Oceania as a partner may be seen as a vote of confidence in Celsius's ability to execute its international strategy, given Suntory's established presence in the beverage industry.

Investors should consider the capital expenditures associated with this expansion and the expected time frame for return on investment. Additionally, they should evaluate the competitive landscape, as Australia and New Zealand are home to consumers with sophisticated tastes and a plethora of beverage options. The financial success of this venture will depend on Celsius's ability to differentiate itself and gain a foothold in the market.

It is also worth noting that the energy drink sector is subject to regulatory scrutiny and any changes in regulations could impact Celsius's operations. Investors should keep an eye on such developments when considering the long-term viability of this expansion.

CELSIUS and Suntory Oceania enter into definitive manufacturing, sales and distribution agreement

BOCA RATON, Fla., March 26, 2024 /PRNewswire/ -- Celsius Holdings, Inc. (Nasdaq: CELH), maker of energy drink brand CELSIUS^®, today announced plans to expand into new international markets, growing the company's global sales and distribution footprint to include Australia and New Zealand. 

"We're pleased to introduce our refreshing, great tasting and functional CELSIUS energy drinks to consumers in Australia and New Zealand," said John Fieldly, Celsius Holdings, Inc. Chairman and CEO.  "We expect to continue our international growth at a measured pace, targeting strategically important energy drink markets and employing our proven playbook to build a strong and passionate consumer base." 

CELSIUS has selected Suntory Oceania as its exclusive manufacturing, sales and distribution partner in Australia and New Zealand. CELSIUS previously announced a sales and distribution agreement with Suntory Beverage & Food Great Britain and Ireland, and sales in those markets are expected to begin in the second quarter of 2024.

"We are excited to launch our strategic plan in Q4 2024 across the retail landscapes of Australia and New Zealand, and we look forward to accelerating growth in 2025," said Tony Guilfoyle, Celsius Holdings, Inc. Chief Commercial Officer. 

"CELSIUS is a brand which is breaking new ground and delivering a totally different consumer experience," said Darren Fullerton, CEO of Suntory Beverage & Food Oceania. "As we build Suntory Oceania, we are delighted to be partnering with CELSIUS to evolve our portfolio and deliver new growth opportunities for all retail partners."  

For media inquiries please contact:
North America and international markets: press@celsius.com
Australia & New Zealand: media@suntoryoceania.com

About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Nasdaq: CELH) is the maker of energy drink brand CELSIUS^®, a lifestyle energy drink born in fitness and a pioneer in the rapidly growing energy category. For more information, please visit https://www.celsius.com.

About Suntory Oceania 
Underpinned by quality craftsmanship and a strong sense of purpose, Beam Suntory and Suntory Beverage & Food (TSE: 2587) are partnering to create a new multi-beverage powerhouse – Suntory Oceania. The partnership will be fully operational in Australia in mid-2025 and 2026 in New Zealand. For more information, please visit https://www.suntoryoceania.com

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SOURCE Celsius Holdings, Inc.

What is the latest partnership announced by Celsius Holdings, Inc. (CELH)?

Celsius Holdings, Inc. (CELH) has entered into a definitive manufacturing, sales, and distribution agreement with Suntory Oceania to expand into Australia and New Zealand.

What are the key markets that Celsius Holdings, Inc. (CELH) is targeting for expansion?

Celsius Holdings, Inc. (CELH) is targeting strategically important energy drink markets in Australia and New Zealand for expansion.

Who is the exclusive manufacturing, sales, and distribution partner of Celsius Holdings, Inc. (CELH) in Australia and New Zealand?

Suntory Oceania is the exclusive manufacturing, sales, and distribution partner of Celsius Holdings, Inc. (CELH) in Australia and New Zealand.

When is the launch of the strategic plan in Australia and New Zealand expected?

The launch of the strategic plan in Australia and New Zealand is expected in Q4 2024.

How does Celsius Holdings, Inc. (CELH) plan to accelerate growth in 2025?

Celsius Holdings, Inc. (CELH) plans to accelerate growth in 2025 by expanding their presence in Australia and New Zealand.

Who is the Chief Commercial Officer of Celsius Holdings, Inc. (CELH)?

Tony Guilfoyle is the Chief Commercial Officer of Celsius Holdings, Inc. (CELH).

Who is the CEO of Suntory Beverage & Food Oceania?

Darren Fullerton is the CEO of Suntory Beverage & Food Oceania.