Celsius’ billion-dollar bet on Alani Nu is paying dividends, as the female-leaning energy drink brand added $301 million in revenue in Q2 and helped Celsius’ North America achieve 41% growth through the first six months of the year.
The acquisition had some negative effects — a 107% increase in sales, general and administrative costs, mainly — but Alani Nu’s surging popularity was cited by management as the “primary driver” of overall brand growth during the quarter, in which overall revenue grew 84% year-over-year ($739.3 million), while net income rose 25% to $99.9 million.
“Celsius Holdings delivered strong results in the second quarter, supported by solid sales growth for the CELSIUS and Alani Nu brands and operational efficiencies across our business,” said CEO John Fieldly in a prepared statement. “As momentum builds across the energy category, our brands continue to lead – driving household penetration, expanding shelf space and outperforming expectations.”
Total retail sales for Celsius grew 29% in the quarter, with volume up 31%; retail sales are over $4 billion for the year. The brand holds a 17.3% market share.
Alani’s “breakout” quarter saw dollar sales rise 129% with share up 3.2 points year over year, making it the largest share gainer in RTD energy, per CEO John Fieldly. As of late June, the brand held a 6.3% market share, with household penetration at 22% and repeat rates passing 65%.
High-margin LTO flavors like Cotton Candy and Sherbet Swirl were a boon for Alani, with the former SKU setting sales records at Walmart and driving incremental gains for the category, management explained.
As for Celsius, the core brand produced $438million in revenue in Q2, with household penetration hitting 34%. Food service, a channel the brand has targeted for growth in recent years, reported a 9.8% YoY increase in volume in Q2, or around 12% of Celsius brand North American sales. Fieldly noted that the brand’s distribution deal with Pepsi will continue to expand around” lodging, recreation, healthcare and quick serve restaurants.”
Moving forward, Celsius’ non-carbonated Fizz Free subline will be a priority, as well as its first-ever venture into LTOs, set for the back half of this year with more to come in 2026.
Variety packs and larger pack sizes are “a trend of the future,” Fieldly said, citing their popularity as a sign that energy drinks are evolving from grab-and-go to pantry stocking.