Claiming that A Shoc is illegally copying its look and engaging in false advertising, Celsius Holdings, Inc., the maker of CELSIUS energy drinks, is taking the competing energy brand and its distribution partner Keurig Dr Pepper (KDP) to court.
Filed yesterday in the U. S. District Court for the Southern District of Florida, West Palm Beach Division, the complaint takes aim at A Shoc’s claims that it “accelerates metabolism” and uses “plant based thermogenic” ingredients without reliable scientific backing.
Whereas CELSIUS is marketed as a dietary supplement and its functional claims are backed by clinical studies, the lawsuit claims A Shoc is selling its products as a conventional beverage but makes “unsupported dietary supplement structure-function claims” on its labels and in its marketing in violation of the U.S. Lanham Act, which prohibits false advertising.
The suit also alleges that A Shoc’s new Accelerator subline infringes on CELSIUS’ trade dress, claiming similarities in color patterns, logo placement and positioning of functional callouts.
The complaint includes photo evidence of in-store placements of Accelerator products positioned next to CELSIUS in coolers, which it claims could create confusion. The court filing also cites a comment from an Instagram user on a post from the official A Shoc account, noting the visual similarity to CELSIUS products.
“Celsius’ can design is inherently distinctive and Celsius’ extensive sales and marketing have created an association and secondary meaning in the minds of the relevant public associating the can design with Celsius as a source of high-quality dietary supplement products for the active consumer,” the complaint states. “A SHOC and KDP are distributing and selling its competing products to the same members of the consuming public to whom Celsius has sold its products.”
The lawsuit seeks financial damages and for A Shoc and KDP to immediately cease selling any products found to be in violation of CELSIUS’ trademark.
Founded in 2004, CELSIUS has seen a surge in dollar sales within the past year, up 222.8% year-over-year to $114.7 million in the two-week period ending April 10, according to market research firm Nielsen. The brand is distributed in over 82,000 doors nationwide in addition to a global footprint in Asia and Europe.
Founded in 2019 by serial entrepreneur Lance Collins and former Monster executive Scot De Lorme, A Shoc produces a line of performance energy drinks that are distributed by KDP, which also handles field marketing. Earlier this year, the company launched the Accelerator line, a plant-based better-for-you energy drink which rolled out into 7-Eleven stores in February with plans to add Target stores this spring.
KDP has seen dollar sales for its energy drink portfolio, including A Shoc, slide over the past year, down 10% year-over-year to $58 million in the 52-week period ending April 10, while growth was net zero for the two week period, according to Nielsen.
CELSIUS declined to comment for this story. When reached for comment, A Shoc said it had not yet had a chance to consult with its legal team about the case.