Buoyed by triple-digit growth in international markets, Celsius Holdings, Inc., makers of the sugar-free energy drink Celsius, reported a record $6.7 million in revenue in its Q3 financial results released Thursday, an 82 percent increase from the same period last year.
The brand, which promotes itself as a fat-burning drink backed by clinical science, saw international revenue more than double from $1.1 million to $2.8 million in Q3, an increase of 147 percent from the same period last year. Domestically, revenue increased by 53 percent from $2.5 million to $3.8 million.
Speaking during a conference call to announce the results, Celsius CEO Gerry David said that increased sales volume was the underlying driver of revenues during the third quarter. The brand saw an 80 percent growth in health and fitness accounts, followed by 54 percent in retail accounts due primarily to expansion of convenience store distribution initiatives, specifically at 7-Eleven locations. Internet retailer accounts experienced 13 percent growth.
“Our third quarter results reflect the momentum we are gaining with global distribution expansion and strong domestic consumer demand for our products,” David said in a press release.
During the call, the brand detailed further plans for expansion: In addition to launching in Singapore this month, Celsius will move into over 550 U.S. Army and Air Force Base stores worldwide, with distribution through Eurpac Services Incorporated.
Total revenue for the first nine months of 2016 stands at $16.5 million, a 27 percent increase from the corresponding period last year.
The brand has also leveraged celebrity endorsements and a presence in pop culture to its benefit. During the call, David said Celsius had renewed its partnership with multi-platinum recording artist Flo Rida, which includes a national advertising campaign, private concert, social media integration and support for a national contest at Gold’s Gym Corporate locations. He also mentioned that the music video for Flo Rida’s hit “My House,” in which Celsius is featured three times, has over 174 million views on YouTube.
The brand unveiled a new can design at the National Association of Convenience Stores (NACS) show in Atlanta this October. When asked about the revamped packaging, which should begin production by the end of the year, David said its intent was to “hone in on what the brand needs to exemplify.” The top portion of the can will feature the Celsius ‘C’ logo and become the brand’s “global identity” consistent across all markets, while the bottom portion will be customized to appeal specifically to the country where it is sold.
“It’s been very well received,” said David. “It’s presence on the shelf will pop better.”