PepsiCo Inc. will invest $550 million for an 8.5% stake in Celsius Holdings Inc., a Boca Raton, Fla., maker of the fitness energy drink Celsius, which claims to burn calories, especially fat.
The deal includes “a long-term strategic distribution arrangement,” which will transition most of Celsius' current U.S. distribution to PepsiCo, although it’s subject to some exceptions in retail and foodservice channels. PepsiCo definitely will handle Celsius’ global distribution.
While Celsius generally plays in the hot energy drink category, it may be unique in claiming to burn calories. “When combined with exercise, our formula is clinically proven to boost your metabolism and help you burn body fat,” its website claims. Key ingredients are green tea extract, guarana and ginger root.
Celsius has been around a while; we first wrote about them in 2005. PepsiCo also will get a seat on Celsius’ board of directors.