About a year after receiving it, Huge $550 million investment from PepsiCo, Celsius is in tears. Sparkling energy drink brand launched in August Multi-year contract with Major League Soccer (MLS) is the first domestic sports sponsor, with an eye on the 2026 World Cup. This sports marketing strategy, which followed a collaboration with the Inter Miami CF team, comes ahead of superstar Lionel Messi’s arrival in the league. skyrocket in popularity Some see this as a sign that soccer is gaining a stronger foothold in the United States.
Beyond sports, the marketer has expanded into food service, recently signing deals to sell at Jersey Mike’s and Dunkin’s stores nationwide. On Capitol Hill, Secure your own Celsius vending machinecelebrities Jake Paul, Shaun White, Sara Sampaio I recommend it of drinks.
Celsius Holdings CEO John Fieldley
Permission from Celsius Holdings
As our sales network and public profile have expanded, we have also expanded our range of products. The Florida-based company promotes the slogan “Live Fit” and has both the Core and Vibe lines of energy drinks in slim cans, as well as drinks for people who are working out. There is also a growing selection of powders that can be mixed. Go to the consumer.
Sales reflect the fact that Celsius, which first hit the market in 2004, has become more ubiquitous.Parent company Celsius Holdings increased revenue in North America by 114% year over year. Expected to reach $311 million in second quarterAnd the company is aiming for even greater global expansion. Below, Marketing Dive spoke to his CEO, John Fieldly, about the MLS partnership, PepsiCo’s impact, and the disruptive company’s continued dominance on an increasingly broader stage.
This interview has been edited for clarity and brevity.
Marketing Dive: Two years ago this month, you were talking with my colleagues at Food Dive about Celsius’ pandemic growth, and you said you didn’t want the brand to become “grandpa’s energy drink.” Has your MO changed at all?
John Fieldley: We are bringing new consumers into this category. We’re not your grandpa’s energy drink. At Celsius, we value staying healthy and living life to the fullest, both in and out of the gym. We have been able to bring to market several new flavors that truly differentiate us in the energy space. Our functional ingredients separate us from the pack. In the post-COVID-19 world, Celsius stands completely by everyone who wants to live a better life.
In terms of fitness positioning, could you explain a little more about how the deal with MLS came together?
On-site: In fact, this is the first national sports league we have partnered with. Initially, we partnered with Inter Miami. I never expected Messi to show up. If you look at MLS, Gen Z is really growing up. Our target consumer group is men and women aged 18-24. Soccer has become very popular in the United States and continues to grow by leaps and bounds. Additionally, the World Cup will be held in a few years. There will be a lot of excitement around that.
If you look at MLS, Celsius is sponsoring extra time. We provide the essential energy to help everyone stay strong through the long hours of every match. The partnership is working. We are in our first season with them and look forward to further collaboration with MLS and various other partnerships planned for 2024.
You said that Messi joining the league was a surprise. How did that affect your response to Celsius?
On-site: This has further increased the visibility of MLS in various matches and broadened the consumer fan base. It really helped take the league to the next level.
Has this influenced your internal thinking about the Celsius marketing machine? Are you hiring more marketers and working with more agencies?
On-site: We use several agencies for certain tasks. But we’re actually building a sports marketing team, a digital team, a social team, an influencer team internally. We’ve added a lot of new team members this year, and we’ve really all grown internally. Sports Marketing believes this is a great opportunity to reach his target 18-24 year old male and female consumers. Sports like MLS allow you to target a younger demographic.
You’ve mentioned the 18 to 24 demographic several times. Have you ever thought about expanding your audience?
On-site: Obviously we’re going to change some of our strategy. But for now, our focus remains on Gen Z. We intend to further strengthen our team and strategy.Last month we 170 university students graduated [as part of the Celsius University ambassador program], representing 65 universities across the country. We enroll 170 students and educate them about running a consumer products business.
I’d like to switch gears a little and talk about food service. Celsius is currently subbing for Dunkin’ and Jersey Mike’s. How do you approach that channel?
On-site: We’ve never been in food service. This is new ground for us. It can be seen that the opportunities for use are expanding compared to conventional energy drinks. Energy drinks are often mostly appetite suppressants. Many consumers consume Celsius at lunch. That is the difference from conventional energy. We think food service can play a big role. There are also several opportunities to offer mocktails on-premises. It’s undeveloped.
The partnership with Dunkin is particularly interesting. You might think that Celsior would compete with its own coffee products.
On-site: It was part of a partnership with [PepsiCo]. Consumers buy Dunkin’ drinks (coffee or other products) and canned goods in the afternoon.
The deal you signed with PepsiCo last fall focuses on distribution, but what other growth has it brought about?
On-site: We’ve expanded our convenience even further, now making the Celsius U program available on-premises and at universities. Pepsi also opens up great opportunities internationally. The same health and wellness trends that we see in the United States are global trends. The world is so small that it’s just a click away.
Have you ever followed PepsiCo’s marketing strategy? What they’re doing in MLS may mirror what they’re doing in the NFL.
On-site: We just started our first year focused on distribution. Migration has become a top priority. Looking to the future, new ways to partner across supply chains and marketing activities will be a major opportunity. They have some of the best properties.
In terms of your media mix, do you leverage any form of retail media through your e-commerce channels or stores?
On-site: That’s very important. We live in an omnichannel world. From e-commerce to grocery pickup and delivery, leveraging multiple platforms must be part of the overall mix for today’s on-the-go consumers.
Coming full circle: Celsius is positioned as a destroyer at this point. But now we have a national presence in the sponsorship space, food service and retail partnerships. How do you plan to maintain that advantage?
On-site: Over the past 12 months, we have scaled rapidly. We must remain agile and be able to connect with consumers and meet their needs in meaningful and emotional ways. This is very important if you want to stay on top of market trends.
