PEP-PEPSICO INC

PepsiCo's Distribution Strategy Faces Challenges as Celsius Holdings Reports Significant Sales Decline Despite International Growth Potential

Tuesday

18 February, 2025

PepsiCo's distribution partnership with Celsius Holdings is facing significant hurdles, highlighted by a staggering 80% stock decline and a 31% drop in revenue. Can Celsius's international expansion and restructuring efforts pave the way for recovery in this challenging landscape?

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Key Takeaways
  • PepsiCo's investment in Celsius Holdings aligns with the expanding energy drink sector, particularly in sugar-free options.
  • Celsius has seen significant international growth, with a 37% increase in sales during Q3 2024.
  • The brand's restructuring and in-house manufacturing are anticipated to improve operational efficiency and profit margins.
  • Analysts view Celsius's stock as undervalued, suggesting potential for future gains.
  • Overall, PepsiCo is poised for sustained growth through its strategic partnership and market positioning.

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