Continuing to maintain the triple-digit growth streak that has pushed the brand into position as the number three energy drink brand in the country, Celsius Holdings broke a company record in its Q2 earnings report this week when it announced quarterly revenue of $326 million (+112% year-over-year), its first quarter in its history to surpass the $300 million threshold.

The growth was bolstered by its distribution agreement with PepsiCo, which has helped it to vastly expand its footprint in the foodservice channel, as well as a strong performance in the club channel (+68% year-over-year), ecommerce (+108%) and convenience, where its ACV has jumped to 94.9%.

The company’s earnings call focused primarily on the nuts and bolts of Celsius’ retail strategy, which has concentrated on driving incremental category growth by bringing in consumers new to the energy category, as well as an emphasis on growing its branded cooler placements and earning more secondary locations in its existing accounts.

“As the company continues to gain new consumers, we believe they are unique to the energy category, which further increases the value of each of our customers,” said CEO John Fieldly in an earnings call. “We are expanding the energy category with an expanding consumer base and usage occasions. The Celsius consumer is making it a daily part of their active lifestyle with consumption patterns that are similar to coffee, [rather] than traditional impulse purchases with legacy energy drink brands.”

• The bulk of Celsius’ business remains in North America (up 11% to $311 million) while just $15.1 million (up 76%) came from international sales. 
• Fieldly said the company is crafting a plan to grow its overseas operations but likely will not make any significant launches until next year.
• Gross profit for Q2 was $159 million, up 168% from $59 million in 2022. Gross profit as a percentage of revenue was 48.8%.
• The call made no mention of pending litigation, however it’s worth noting that last week investors in the company asked a federal judge in Florida to approve a $7.9 million preliminary settlement in a case claiming Celsius inflated its revenues by misstating costs of an employee stock compensation program. In the company’s defense, Celsius says it did not deliberately inflate its numbers but acknowledged an accounting error occurred in its 2021 earnings.

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As the no/low $11 billion global business grows, so do the opportunities for brands playing in the moderation space. But what are the occasions to win?

Alex Jump, co-founder of Focus on Health, has some ideas. A Forbes “30 under 30 Food and Drink” alumni, the bar consultant was a bar manager at one of the country’s most renowned cocktail bars, Death & Co. In 2020, Jump co-founded Focus on Health with her business partner, Lauren Paylor, where they use their platform to advocate for the physical and mental wellbeing of the food and beverage industry. The company also provides wellness and no/low consulting to the on-premise industry and anyone from global spirit companies to non-alc brands like Three Spirit.

Just off a cross-country multi-brand sponsored no/low cocktail tour that culminated at Tales of the Cocktail, Jump emerged with fresh insights on some of the top opportunities for no/low brands in the on-premise sector and beyond, including why delivering innovative cocktail recipes is key for landing the at-home drinker and why she tells her on-premise clients that if they aren’t offering non-alc cocktails, they’re leaving money on the table (err, bar). 

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In a debate that might remind people of a scene from the 2006 movie Idiocracy, Coca-Cola announced it will be appealing a recommendation by the National Advertising Division (NAD) of BBB National Programs over the electrolyte load of its reformulated Powerade sports drink.

• NAD recommended that Coke discontinue or modify its advertising campaign claiming that Powerade contains “50% more electrolytes” than Gatorade saying that even though the new Powerade formulation contains 50% more potassium and sodium by weight to Gatorade, the electrolyte claims “overstate the significance of the nutrient difference” and falsely imply that Powerade provides better performance and hydration.
• Additionally, a flexed arm emoji 💪in some social media posts incorrectly implies that Powerade helps make you stronger than Gatorade.
• Coke announced it disagrees with the recommendation and will appeal the decision with the BBB National Programs’ National Advertising Review Board (NARB).

Despite the turbulence that Logan Paul and KSI’s beverage brand has weathered recently in North America, PRIME’s international expansion continues on its march.

This week, PRIME Hydration has been announced as the official isotonic partner for one of Europe’s biggest football clubs, FC Bayern Munich. Not only will PRIME Hydration beverages be available at the Bavarians’ stadium, Allianz Arena, but the multi-year partnership is expected to be a launching board for the brand in Germany with an expected release of a FC Bayern X PRIME limited-edition bottle later in the year. 

While competitors like Gatorade and BodyArmor have affiliations with the largest American sports leagues, PRIME has directed its attention to high-profile European football clubs with a global network of engaged fans: see Arsenal in the UK and FC Barcelona in Spain.

Beam Suntory has officially moved on plans to build a $191 million Scotch whisky maturation facility in East Ayrshire, Scotland.

• Beam Suntory, whose scotch portfolio includes Bowmore, Laphroaig and Auchentoshan among others, submitted plans for a new facility this week that would have the capacity for approximately half a million barrels of whisky. 
• The global spirits company recently announced other plans to beef up infrastructure overseas by teaming up with its Frucor Suntory soft drinks division to create a $1.96 billion spirits and no-alcohol venture in Australia and New Zealand.
• On this side of the pond, the company announced yesterday that the James B. Beam Institute for Kentucky Spirits is opening its distillery and maturation facility on the University of Kentucky campus, making it the world’s largest teaching distillery. The new distillery also includes the Independent Stave Company – Boswell Family Barrel Warehouse, which allows the Beam Institute to experiment with barrel aging spirits produced in its research distillery. 
• Plans to increase production of American whiskey were announced last year: the Jim Beam owner expects to complete its $400 million distillery expansion in Kentucky by 2024.