About Celsius Holdings

Celsius Holdings, Inc. engages in the development, processing, marketing, sale, and distribution of functional drinks and liquid supplements to a range of consumers. The company’s core offerings include pre- and post-workout functional energy drinks, as well as protein bars. Its flagship functional energy drink and liquid supplement brands are backed by science, being clinically proven to deliver health benefits by six self-funded studies. These studies have concluded that a single serving of CELSIUS burns 100-140 calories (by increasing a consumer’s resting metabolism an average of 12%, while providing sustained energy for up to three hours). The company’s flagship asset, CELSIUS, is an energy drink which accelerates metabolism and burns calories and body fat while providing energy. This product line comes in two versions, a ready-to-drink supplement format and an on-the-go powder form. The company also offers a CELSIUS HEAT and a BRANCH CHAIN AMINO ACIDS line, catered to both pre- and post-workout consumer needs. The company’s products are offered in major retail channels in the U.S., including conventional grocery, natural, convenience, fitness, mass market, vitamin specialty and e-commerce. Products The company seeks to combine nutritional science with mainstream beverages by using its proprietary thermogenic (calorie-burning) MetaPlus formulation, while fostering the goal of healthier everyday refreshment by being as natural as possible without the artificial preservatives often found in many energy drinks or sodas. CELSIUS has no chemical preservatives, aspartame or high fructose corn syrup and is very low in sodium. CELSIUS uses good-for-you ingredients and supplements, such as green tea (EGCG), ginger, calcium, chromium, B vitamins and vitamin C. CELSIUS is sweetened with sucralose, a sugar-derived sweetener that is found in Splenda, which makes the company’s functional energy drinks low-calorie and suitable for consumers whose sugar intake is restricted. Each 12 ounce can of CELSIUS contains 200 milligrams of caffeine which is comparable to one 12-ounce cup of coffee from the leading coffeehouse. The company has five functional energy drink lines: CELSIUS Originals and Vibe, the company’s initial product line, is offered in various flavors, which are carbonated and non-carbonated. CELSIUS HEAT is a trainer’s grade functional energy drink. CELSIUS HEAT is also a dietary supplement that uses the same proprietary thermogenic MetaPlus formula as CELSIUS, Originals, which is proven to accelerate metabolism, boost energy and accelerate calorie and fat burn when combined with exercise. CELSIUS HEAT, which is packed with 2,000mg of L-citrulline and 300mg of caffeine, comes in eight carbonated flavors: Apple Jack’d, Orangesicle, Inferno Punch, Cherry Lime, Blueberry Pomegranate, Strawberry Dragonfruit, Tangerine Grapefruit and Jackfruit. CELSIUS BCCA+ENERGY is an innovative branched-chain amino acids (BCAA) functional energy drink that fuels muscle recovery. The CELSIUS BCCA+ENERGY product line was initially launched in the fitness channel. CELSIUS On-the-Go is a powdered form of the active ingredients in the company’s functional energy drinks in individual On-The-Go packets, as well as multiple serving canisters. CELSIUS Sweetened with Stevia is a natural line extension introduced in 2018, targeting the natural products channel. CELSIUS Sweetened with Stevia is available in six refreshing flavors: three sparkling - grapefruit, cucumber lime, and orange pomegranate; and three non-carbonated - pineapple coconut, watermelon berry, and strawberries and cream. This product line boasts a clean ingredient panel featuring 100% natural caffeine-from-green-coffee bean extract and Stevia an all-natural sweetener. CELSIUS ready-to drink products are packaged in a distinctive 12 ounce sleek can that uses vivid colors in abstract patterns to create a strong on-shelf impact. The cans are sold in various packaging units are designed to provide a clean, crisp and more modern look. In addition to being sugar free, the company’s original ready-to-drink product line is non-GMO, kosher and vegan certified and soy and gluten free. Func Food Group Oyj, a company incorporated under the laws of Finland (Func Food) was acquired in October 2019, as a result the company acquired the beverages, protein bars, supplements and superfoods marketed and distributed in Finland, Sweden, and Norway. These products are distributed under the FAST, FitFarm and CocoVi brands and which are owned by Func Food. Distribution Domestic: In the United States and elsewhere in North America, CELSIUS is sold across many retail segments. They include supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants. The company also sells to health clubs, gyms, the military, and e-commerce websites. The company distributes its products domestically through direct-store delivery (DSD), distributors, as well as sales direct to retailers (DTR). Its products are also sold online through e-commerce platforms, such as Amazon and Walmart.com. International: The company distributes its products in various foreign regions through regional and country-specific distribution partners. In October 2019, the company acquired Func Food, its Nordic distribution partner, who markets both its products, as well as other products under its own brands. The company markets its products in the Asian market through local distributors in Hong Kong and a license agreement with its partner in China, Qifeng Food Technology (Beijing) Co., Ltd. (Qifeng). With the company’s new partnership with PepsiCo Inc (Pepsi), it would expect to utilize the Pepsi system as it develops international expansion plans in future periods. Customer Concentration For the year ended December 31, 2022, the company’s customers were Pepsi, Costco, Amazon, and others. Seasonality of Sales As is typical in the functional energy drink and supplement industries, sales of products are seasonal, with the highest sales volumes generally occurring in the second and third fiscal quarters (year ended December 2022), which correspond to the warmer months of the year in the company’s major markets, albeit with its recent significant growth, it has seen ongoing quarter over quarter growth regardless of the season. Competition The company’s direct competitors in the functional energy drink and supplement markets include, but are not limited to, The Coca-Cola Company; Dr. Pepper Snapple Group; Nestle; Waters North America, Inc.; Hansen Natural Corp.; Vital Pharmaceuticals, Inc; Monster Energy; and Red Bull. Research and Development The company’s research and development expenses were $0.4 million during the year ended December 31, 2022. Proprietary Rights The company has registered the CELSIUS and MetaPlus trademarks with the United States Patent and Trademark Office, as well as a number of additional trademarks. The company maintains its MetaPlus formulation and product formulas as trade secrets. Government Regulation The production, distribution and sale of the company’s products in the United States is subject to the Federal Food, Drug and Cosmetic Act, the Dietary Supplement Health and Education Act of 1994, the Occupational Safety and Health Act, various environmental statutes and various other federal, state and local statutes and regulations applicable to the production, transportation, sale, safety, advertising, labeling and ingredients of such products. History Celsius Holdings, Inc. was founded in 2004. The company was incorporated in the state of Nevada in 2005.