Celsius Holdings, Inc. is an American company that produces a range of fitness and energy beverages under the brand name Celsius. The company's products are marketed as healthy, a strategy that the CEO credits the brand's success to.[4][5]
History
The company was founded in 2004 by Steve Haley. In 2009 the company released their first energy drink in Sweden and ended with a revenue of 5.86 million.[6] By 2012, the company had a market capitalization of approximately $5 million. Five years later, in 2017, Celsius was listed on the Nasdaq.[7] By the end of that year, Celsius Holdings had an annual revenue of almost $36 million.[8]
As of August 2024, Celsius holds an 11% market share of the $19 billion energy drink industry, generating over $1.3 billion in revenue and a market capitalization of roughly $9 billion. The company's success is attributed to its alignment with current consumer preferences, such as increased caffeine content, appeal to health-conscious consumers, and a focus on fruit-flavored products rather than chemically-tasting alternatives.[9]
Celsius contains 100 mg – 270 mg of caffeine, depending on the product line and size of the can.[12] The varying caffeine content information is located on the can of each Celsius drink sold.
Health professionals suggest you generally drink no more than 400 mg of caffeine per day.[13] Ingesting more than 400 mg can result in symptoms such as trouble falling asleep, jittery or anxious behavior, headache, stomach pain, nausea, increased heart rate, and negative mood changes.[13]
Carl DeSantis invested in the early months of Celsius Holdings in 2004.[15] DeSantis continued to invest throughout the company's development because the product line interested him. In 2010, a $3 million dollar credit line was invested in Celsius for an advertising campaign to promote the new products, but the money did not create the outcome expected.[15] As a stakeholder, he provided advice to the Celsius team and assisted with leadership changes in 2012 when the company was not meeting the expected business goals.[15] DeSantis died having earned $1.2 billion dollars from a 31% stake in Celsius Holdings.[15]
PepsiCo invested $550 million in Celsius Holdings,[16] a 8.5% minority stake.[17]
Celsius Holdings faced a class-action lawsuit in November 2022 for allegedly misleading customers with the ingredient citric acid being added as a flavor instead of a preservative.[22] Celsius Holdings claimed that citric acid does not serve as a preservative, but as flavoring for their beverage.[22] The lawsuit was settled outside of the court between the parties involved, so there was no ruling against Celsius Holdings.[23] The settlement agreed included that any class member who purchased a Celsius drink for personal purposes to submit a claim for money back.[22][23] Upon submission of a claim, you can receive up to $250 for $1 per Celsius drink, or $5 per package of 14 Celsius drinks if you have a receipt. Without a receipt, you can request up to $20 per household.[22][23]
Flo Rida lawsuit
Celsius Holdings faced a lawsuit in 2021 with Tramar Lacel Dillard (Flo Rida) for a breach of contract when the company allegedly withheld details about revenue.[24][25] Flo Rida was a contracted brand ambassador from 2014 to 2018 which brought Celsius to concerts and events to help expand the brand.[25] The Florida court ruled in Flo Rida's favor that Celsius Holdings was in breach of contract as Flo Rida's publicity assisted in the company's growth.[24] Flo Rida was awarded $82.6 million in January 2023 due to the lawsuit.[24][25]
^National Academies of Sciences, Engineering, and Medicine; Health and Medicine Division; Food and Nutrition Board; Committee to Review the Dietary Reference Intakes for Sodium and Potassium (2019). Oria, Maria; Harrison, Meghan; Stallings, Virginia A. (eds.). Dietary Reference Intakes for Sodium and Potassium. The National Academies Collection: Reports funded by National Institutes of Health. Washington, DC: National Academies Press (US). ISBN978-0-309-48834-1. PMID30844154. Archived from the original on 2024-05-09. Retrieved 2024-06-21.
