PepsiCo has made a $550 million investment in energy drink maker Celsius Holdings as part of a long-term distribution deal with the smaller company. Pepsi’s investment in Celsius translates to a stake of approximately 8.5% in the company and includes the right to nominate a director to serve on Celsius’ board.
Targeting younger consumers who are active and exercise, Celsius promotes its beverages as “healthy” energy drinks, which include ingredients such as ginger and green tea and no artificial preservatives or sugar. The company also claims its beverages have thermogenic properties, which means consumers can help increase their metabolism and burn calories by drinking them.
