The ingredients and packaging materials themselves are purchased by Celsius, with the co-packing facility assembling the goods and charging a fee by the case. The products themselves are produced by third party beverage co-packers, which is a manufacturing plant that provides the service of filling bottles or cans for the brand owner. In terms of operations, Celsius manages the development, processing, marketing, sale, and distribution of its drinks. Celsius’ proprietary MetaPlus formulation has been proven to accelerate metabolism and fat burn when combined with exercise, yet the ingredients within this formula are pretty natural: a blend of ginger root, guarana seed extract, chromium, vitamins, and green tea extract. The company also has a focus on trying to keep its products as natural as possible. The core Celsius energy drink has been clinically proven to deliver health benefits by six self-funded studies published in various journals, which conclude that a single serving of Celsius burns 100-140 calories by increase a consumer’s resting metabolism by an average of 12%, while providing sustained energy for up to 3 hours. The core product ranges include pre- and post-workout functional energy drinks, but I guess the question is ‘what makes them functional?’. It also acquired Func Food in October 2019, a supplier of beverages, protein bars, supplements and superfoods in the Nordic markets. It has a number of different Celsius-branded product ranges, including Essential Energy, Sweetened with Stevia, and Heat just to name a few. Business OverviewĬelsius is a fast-growing company specialising in functional energy drinks, with a broad portfolio of products offering clinically proven, innovative formulas that aim to embody a healthy lifestyle & help customers live a fit and active life. Management has continually thumped analysts' expectations, however, this is a company priced for further hypergrowth with a future that is unlikely to be plain sailing.īut does that make Celsius Holdings a good investment right now? I put it through my investing framework to find out.
DjordjeDjurdjevic/E+ via Getty Images Investment ThesisĬelsius Holdings ( NASDAQ: CELH) is a functional energy drinks company that has seen phenomenal growth over the past few years, with a primarily natural product that appeals to an ever more health-conscious consumer.
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