BOCA RATON, Fla. —The convenience-store channel was a hard one for Celsius to crack.
Celsius Holdings Inc., maker of functional energy drink Celsius, originally sold its products in gyms and health clubs. C-store buyers didn’t see the value Celsius offered to customers at first, the company’s Chairman and CEO John Fieldly told CSP.
But that’s changed.
The brand is now in more than 100,000 stores across the country, including c-stores like 7-Eleven, Irving, Texas; Speedway, Enon, Ohio; and RaceTrac, Atlanta. Celsius Holdings Inc., Boca Raton, Fla., saw 133.5% growth in all channels in year-over-year volume for the 52 weeks ending on Aug. 28, according to NielsenIQ, Chicago, data.
The performance energy category has evolved with the education of consumers, Fieldly said. He differentiates performance energy from the traditional, 300 milligrams of caffeine energy beverages like Monster and Rock Star. Performance energy really took off with Bang, which had additives like BCAAs and creatine, he said.
“They want more out of an energy drink, they want it better,” Fieldly said of energy drink consumers. “They don’t want to sacrifice taste, and everyone wants more functionality in the foods and drinks we consume.”
Fieldly, who has been with Celsius Holdings for nearly nine years, said what differentiates Celsius from other energy drinks is its healthy formula. Its flagship drink is made with seven essential vitamins and no preservatives. Celsius is caffeinated by green tea extract and guarana seed extract, and it comes in 13 flavors.
Celsius consumers are a 50/50 mix of male and female. It has a broad consumer based, including consumers who have aged out of traditional energy drinks, Fieldly said. It also brings many new consumers into the category, he said. People tend to pick it up throughout the day, but he sees late afternoon sales as an opportunity as customers head to their fitness routines in the evening.
Having at least a full shelf of energy in the cold vault and multiple points of distribution is key to merchandising the category, Fieldly said. This could be through an in-store floor display or sign at the point-of-sale.
While in-store traffic has been down throughout the COVID-19 pandemic, normalization is taking place as mobility picks back up Fieldly said.
“There was a lot of shifts from alternative channels from convenience to grocery to mass and drug, so it’s going to be interesting to see how we evolve as we enter 2022,” Fieldly said. “We’re still seeing strong growth within the energy category, and we anticipate that to continue. We all need more energy, we’re doing more.”
Celsius flavors include Sparkling Tropical Vibe, Sparkling Peach Vibe. Raspberry Acai Green Tea, Sparkling Strawberry Guava and more. Its product lines also include Celsius Heat, Celsius BCAAS, Celsius-Stevia and Celsius On-The-Go.