The sports nutrition industry had a bomb dropped on it last week when the energy drink maker Celsius announced it had agreed to pay $1.65 billion for fellow functional beverage competitor and supplement company Alani Nu. It was major news that seemingly came out of no where and caught many by surprise, as it brings two of the bigger players in the space under the one roof, excluding the longtime dominant leaders, Monster and its various energy drinks and the legendary Red Bull.
Celsius’ acquisition of Alani Nu has positioned it as a dominant force in the sugar-free energy drink market. In an interview on CNBC’s Mad Money, CEO John Fieldly revealed that sugar-free beverages have become the largest segment of the energy drink category, with Celsius and Alani Nu collectively driving over 50% of its growth last year. The acquisition massively strengthens Celsius’ portfolio, particularly in the female-focused market and zero-sugar competition, with Fieldly noting the impact of GLP-1 weight loss drugs on consumer demand, a trend zero-sugar perfectly aligns with.
It’s going to be interesting to see how both brands develop under the one banner, but either way, as many of the comments, feedback, and Celsius’ own CEO point out, the acquisition is a significant move that combines two competitors that are measurably moving the needle regarding growth. The energy drink category has been heating up over the last few years, not just with innovation from long-running players but newcomers like Ghost Energy, Gorilla Mind, and Redcon1.
