00:00 Brian
Since we have last spoke, it has been a while. Your brand has exploded everywhere, notably in convenience stores. Who are you taking that shelf space from exactly?
00:09 John
Uh, glad to be back and cheers Brian to that. Cheers to have Celsius bring the energy today for this for uh all your audience out there. And what’s fascinating, we’re expanding. We had an amazing portfolio as you mentioned with Celsius, Alani and Rockstar. We have a a modern energy portfolio today. Last time we were on the show, we had a singular brand Celsius and we’re gaining space, shelf space, over 100% shelf space with Alani and 17% uh expanded shelf space with Celsius anticipated.
00:46 John
And that space is coming from a variety of categories, um including teas, cold brew coffees, uh we’re seeing premium waters as well get impacted and the beer uh cooler in a lot of uh convenience stores is shrinking as well.
00:54 Brian
You’re taking share from beer. Taking share from beer.
00:57 John
Not uh space I would say. Not share but space. Uh what we’re seeing in alcohol trends with spirits and alcohol uh reducing, cheers to uh to that. uh getting, um, you know, we’re seeing consumers look for alternatives. We just did a study and we saw within the energy drink category and 33% of the consumers are drinking energy drinks during social occasions where before they would have been an alcohol beverage of choice. Now it’s energy drinks. So, it’s truly expanding. The category’s growing, new consumers are coming in and more females are coming in now than ever before. And that’s a large segment of the Celsius Holdings portfolio that we’re capturing.
01:38 Brian
You know, you know the team at PepsiCo very well. I was just talking to CEO uh Ramon Laguarta a couple months ago. You know, he’s reinventing his whole portfolio, notably in the snacks business because of GLP1s. I hear what he’s doing there. How are you impacted by by a movement like that?
01:54 John
Well, I think that’s a massive opportunity for the category overall and the Celsius portfolio. So, as GLP1 becomes more prevalent, you need more protein, you also need more energy. And when you’re looking for an energy drink, you want more out of your energy drink. And our Celsius portfolio and the Alani portfolio are really multi vitamins in a can. So we’re delivering more than your traditional energy drink, which gets us excited. and I think that health and wellness opportunity that is rooted in both of these brands, Celsius and Alani is here to come and is going to continue to grow with LG uh GLP1 continuing to grow.
02:30 Brian
Uh the the category has seemed to like flown under the radar of the the Make America Healthy uh again movement or or MAHA. Like why do you think why do you think it’s the case?
02:44 John
Yeah, I I think um within that and you know, health and wellness trends, it’s it’s on everyone’s mind. The government’s involved uh as well. Everyone we need our healthcare systems, we need our everyone to live healthier, think about what they’re putting in their body, uh think about ingredients, uh think about the amount of sugar that you’re in taking uh as well, um and and fats within the diet. So, um I think that’s uh getting everyone’s mind on health and wellness and that’s where we’re rooted in with the Celsius and Alani portfolio, rooted in the gyms with Celsius. And Alani was born in health and wellness in uh and health and wellness nutrition and really a multivitamin that’s helped um clearly folks live a healthy active lifestyle uh especially geared towards women.
03:17 Brian
One of the benefits of being uh now you’ve been around, you’re an established brand now, John compared to when we first got to know you and and the company, you’ve seen some different economic cycles. Now, I, I I know there’s consumers out there that are dealing with rising gas prices. It’s causing them 10, 15, 20 more to fill up their tanks. Have you seen them not go into that convenience store after filling their tanks over the past few weeks and not get that extra item that they probably would have gotten two months ago when gas prices were much lower.
03:52 John
Yeah, I think what we’ve seen historically, specifically in the energy category, it’s really affordable luxury item. Um Goldman Sachs has put a report out that actually didn’t have that did have a correlation didn’t have a correlation with increased gas prices and energy drink sales. So, as well. Um so we think we’re in a really good position. And when you look at it, you know, your average coffee house that’s around the corner uh and you look at an energy drink like Celsius and Alani and Rockstar, it’s a really great value opportunity as well. So, we think we’re fairly insulated with that. Um we have great flavors, great refreshing flavors and enhanced vitamins. Uh we’re more than that coffee house uh coffee around the corner that’s, you know, upwards to twice as much as our products are today.
04:36 Brian
Do you have to offer any any promotions or discounts to keep engaged with the consumer that is that is laying out more for gas?
04:44 John
Yeah, well, there’s a variety of pricing promotional strategies that are in play. The category is on usually 24 to 26 weeks uh is like the promotional timing within brands within the category. But what we’re able to do as a portfolio now is really leverage those pricing promotional strategies to increase uh the value of the overall portfolio, which is now over a 20 share in the energy category, uh which is massive and provides additional leverage and scale.
05:07 Brian
Uh, I have to pick my spots because we’re running out of time here, John. Uh I’m going to roll with this one. Have you reached the upper bounds on how much caffeine you could put in this? I’m looking at this Alani. This thing is 200 milligrams of caffeine. Why not make it 400?
05:22 John
Yeah, I think 400 is the maximum daily amount recommended by the FDA. Um, you know, we feel 200 is the right amount. We do have lower caffeine offerings. We have Alani Minis and
05:32 Brian
No, I want higher, John. I want higher.
05:34 John
Well, we have our Celsius essentials as well that’s enhanced caffeine uh and uh but uh you know, we think we got the right amount and um you know, we’re excited about the products we offer. Uh we’re expanding the category. Um and uh let’s go.
05:50 Brian
All right, let’s go is right. John, good to see you. Have a great weekend. Keep these products flowing.
