Unveiling the Secret Sauce to Celsius' Unmatched Disruption Dedicated to Gen Z

About a year after receiving a significant $550 million investment from PepsiCo, Celsius is experiencing remarkable growth. In August, the popular energy drink brand secured a long-term partnership with Major League Soccer (MLS), marking its first nationwide sports sponsorship and aligning with the anticipation of the 2026 World Cup. This strategic move in sports marketing comes after successful collaborations with Inter Miami CF, coinciding with the arrival of superstar Lionel Messi to the league, which further boosts soccer's increasing popularity in the United States.

Not limited to the sports arena, Celsius has also expanded into the foodservice industry by striking recent agreements to be sold in Jersey Mike's and Dunkin' locations across the country. Additionally, Capitol Hill now has its own Celsius vending machine, further solidifying the brand's presence. Notably, prominent figures such as Jake Paul, Shaun White, and Sara Sampaio have become endorsers of Celsius.

Celsius Holdings CEO John Fieldly

Permission granted by Celsius Holdings

With an expanded sales network and increased public visibility, there has been a surge in the variety of products offered by Celsius. This Florida-based company, known for its "Live Fit" philosophy, now has a core line and a Vibes line of slim energy drinks. They have also introduced a growing selection of powders that can be added to beverages for on-the-go consumption.

The widespread availability of Celsius products is evident in its sales figures. In the second quarter, Celsius Holdings, the parent company, experienced a 114% year-over-year growth in revenue in North America, reaching $311 million. As they aim to expand their presence internationally, Our Website had a conversation with CEO John Fieldly, discussing the recent partnership with MLS, the influence of PepsiCo, and the company's determination to maintain its position as a disruptor in the increasingly competitive market.

Have your priorities shifted since your previous interview with Food Dive about Celsius' pandemic growth, where you expressed your desire for the brand to steer away from being seen as a traditional energy drink?

JOHN FIELDLY: Our focus is on attracting a fresh audience to the energy drink sector. Celsius is not your traditional energy drink; it represents an active and vibrant lifestyle, whether you're at the gym or embracing life outside. The introduction of unique flavors has set us apart in the energy drink market. Our functional ingredients are what make us stand out from the competition. In a post-COVID world, Celsius perfectly aligns with individuals striving to improve their lives.

Regarding our fitness-oriented approach, can you provide more details on how the MLS partnership was established?

FIELDLY: This is our first national sports league partnership, starting off with Inter Miami. We were pleasantly surprised by Messi's unexpected presence. MLS, which has a growing Gen Z audience, aligns perfectly with our target consumer base of 18 to 24-year-olds, both male and female. Soccer's popularity in the United States is rapidly increasing, and with the upcoming World Cup, there will be a tremendous amount of excitement.

In terms of MLS, Celsius has sponsored extra time to provide the necessary energy for fans to power through each game. The partnership has been successful. We are currently in our first season with them, and we are eagerly looking forward to expanding our partnership with MLS and establishing various other collaborations in 2024.

How has Messi's entry into the league impacted Celsius' response?

FIELDLY: It has generated significant attention and expanded the fanbase of MLS across multiple games. This development has greatly aided the league's progress in advancing to a higher level.

Has this impacted your perspective on Celsius' marketing strategy? Have you hired additional marketing personnel and increased collaboration with agencies?

FIELDLY: While we do work with certain agencies for specific tasks, our primary focus is on developing our internal teams in sports marketing, digital marketing, social media, and influencer marketing. We have welcomed many new team members this year, all of whom have grown within our organization. Utilizing sports marketing, we recognize the potential to effectively reach our desired demographic of 18-to-24-year-old males and females. Partnering with sports leagues like the MLS enables us to successfully target a younger audience.

You have frequently referred to the 18-to-24 demographic. Have you considered widening your target audience? 

FIELDLY: Certainly, we will modify our approaches. However, presently, our main focus remains on Gen Z. We will persist in enhancing our teams and strategies. Last month, we successfully completed the Celsius University ambassador program, graduating 170 college students from 65 colleges nationwide. These students undergo training in managing a consumer products business.

Moving on to a different topic, I want to discuss our presence in the foodservice industry. Celsius can now be found at Dunkin' and Jersey Mike's Subs. How are we approaching this channel?

FIELDLY: This is a completely new territory for us as we have never been involved in the foodservice sector before. We have noticed that there is a broader range of occasions for consuming Celsius compared to traditional energy drinks. Unlike most energy drinks, which tend to suppress appetite, many of our consumers enjoy a Celsius with their lunch. This sets us apart from the traditional energy market. We believe that the foodservice industry presents a significant opportunity for us. Additionally, there are potential on-premise opportunities where we could explore the creation of mocktails, which is a completely untapped area for us.

The Dunkin' partnership is intriguing as one would assume Celsius would be in competition with their coffee options. However, this was actually a planned aspect of the partnership with PepsiCo. Consumers can purchase a drink from Dunkin', such as coffee or another beverage, and then opt for a canned Celsius product for their afternoon pick-me-up.

What other growth opportunities has the PepsiCo deal, primarily focused on distribution, opened up for us? We have successfully extended our presence into the convenience market and have also ventured into on-premise locations, as well as colleges and universities through the Celsius U program. Additionally, PepsiCo provides us with a significant international opportunity. The global market follows similar health and wellness trends as the U.S., and with the ease of communication in today's interconnected world, international expansion is only a click away.

Have you utilized any strategies or tactics from PepsiCo's marketing playbook? Your approach with MLS could parallel what they have executed with the NFL.

FIELDLY: In our initial year, our primary focus has been on distribution and ensuring a smooth transition. Moving forward, the significant potential lies in exploring innovative partnerships, particularly in the supply chain and marketing campaigns. PepsiCo possesses some of the most prestigious assets in the industry.

Are you utilizing retail media through e-commerce channels or in-store to maximize your media mix? In today's omnichannel world, it is crucial to leverage multiple platforms such as e-commerce, grocery pickup, and grocery delivery to cater to the needs of the on-the-go consumer.

Celsius is currently seen as a disruptor, but their presence in sponsorship, foodservice, and retail partnerships has expanded nationally. How will they maintain their competitive advantage moving forward?

FIELDLY: Over the past year, we have experienced rapid growth. We need to maintain our agility and establish a genuine connection with our consumers, addressing their emotional needs and delivering what they desire. It is crucial for us to stay updated with the latest market trends to sustain our success.