Automatic_Merchandiser_April_2021 - 28

Celsius stands out against other energy drink brands because it's made with such
" healthier " ingredients as ginger, guarana, green tea and seven essential vitamins.
Celsius Holdings Inc.

ENERGY BOOST

170117687 | Milkos | Dreamstime

BEYOND COVID

» Transitioning
The swing toward functional
beverages is a major trend
expected to outlast the
COVID-19 pandemic.
» Trending
Pay close attention to
emerging high-protein
plant-based beverages,
the mainstreaming of CBD
beverages and sustainable
packaging innovations.
» Sustainability
Alternative solutions for plastic
packaging will become the
main topic in 2021. A Cone
Communications study found
that 88% of consumers are
more loyal to companies that
support environmental issues.
» Placement
Operators should consider
placing larger beverage sizes
and multipacks in micro
markets for their location
customers who might be
shopping less frequently in
stores. Promote theses items
using traditional POS signage
and micro market applications.

Automatic Merchandiser * April 2021

Vending and micro market operators
have been riding the energy drink and
functional beverage wave for several
years and the pandemic did not slow
the momentum for Boca Raton, FLbased Celsius Holdings Inc., according
to vice president of vending and foodservice David Smaltz. He noted that
2020 sales of the company's signature
Originals energy drink line matched
2019 figures despite the setbacks to the
industry from COVID-19.
One reason, according to Smaltz,
is that Celsius stands out against other
energy drink brands because it's made
with such " healthier " ingredients as
ginger, guarana, green tea and seven
essential vitamins. It contains no sugar,
aspartame, high fructose corn syrup,
artificial preservatives, colors or flavor.
It's also shelf stable.
The sparkling Celsius lineup sold
in vending and micro markets is one
of five formulations. It is formulated to
provide essential energy and is clinically proven to accelerate metabolism
and burn body fat when exercising.
The newest flavor, launching in May, is
Tropical Vibe, a summery blend of starfruit and pineapple. It will be supported
by a multimedia campaign and pointof-sale signage. Tropical Vibe joins a
dozen flavors, including Strawberry
Guava, Peach Vibe, Fuji Apple Pear,
Kiwi Guava, Grape Rush, Cola, and
Peach Mango Green Tea.
" Celsius entered micro markets
three years ago with companies that had
a focus on health and wellness, but as
consumers across a wider demographics demanded a clean, effective energy
drink with cross functional benefits,

Celsius is now found in tens of thousands of locations across the country, "
Smaltz said. " While the velocity of our
growth in micro markets has clearly
been impacted by COVID-19 and the
shutdowns in business across the U.S.,
our growth remains strong. Our yearover-year sales growth in the first quarter of 2021 for our channel is up 40%. "
Also propelling Celsius demand in
vending and micro markets is its fastgrowing brand recognition at retail,
Smaltz added. Celsius's U.S. store count
now exceeds 82,000 locations nationally, including Target, CVS, Walmart
and 7-Eleven, growing 18,000 from the
same point in 2019, with additional
expansion planned into 2021. It is also
available on Amazon and at fitness
clubs nationwide.
" We've kept our foot on the gas
throughout the pandemic, " Smaltz said.
" In our unique case, retail DSD escalated over the past year in more outlets
than ever. It's the No. 3 energy drink on
Amazon and the highest consumer recognition the brand has ever had. I credit
the retail side for the profound growth
in vending and micro markets that has
kept us growing in the segment even in
the middle of a pandemic. "
Smaltz said the next evolution for
Celsius is to " fill in all the whitespace " in
the U.S. with distribution to be everywhere people want it. In 2020, Celsius
secured additional distribution agreements with partners PepsiCo and Keurig
Dr. Pepper, among others, further
expanding availability to new regions as
Celsius builds out its national distribution network, which now includes over
150 regional direct store delivery partner
distribution centers. ■

Automatic_Merchandiser_April_2021

Table of Contents for the Digital Edition of Automatic_Merchandiser_April_2021