Can Celsius Holding navigate the hidden energy drinks market risks involving the Alani Nu and PepsiCo DSD distribution swap? Celsius Holdings (NASDAQ: CELH) had quarterly revenue of $725.1 million, which was up 173% YoY. Excluding the Alani Nu acquisition-related financial impact, CELSIUS brand revenue grew 44% YoY. And if you were wondering about Alani Nu, it’s second quarter revenue was $332 million…which equates to around 99% YoY growth! According to Circana last 13-week retail sales data, CELSIUS increased by 31% YoY...remaining the third-largest energy drink brand in the category with a dollar share of 11.2%. Alani Nu increased retail sales 114% YoY and is now the dominant fourth player in the U.S. energy drinks market with dollar share of 7.2%. And Rockstar Energy retail sales decreased 9% YoY and is the seventh-largest U.S. energy drink with dollar share of 2.4%. If we look at Celsius Holdings combined brand portfolio, it reached 20.8% of dollar share for the last 13-week period...ranking it third and trailing only Red Bull and the combined Monster Beverage portfolio. Additionally, if you were to consider the last 52-week period ending July 20, 2025…Celsius Holdings retail sales surpassed $5 billion. Celsius Holdings has experienced massive growth in convenience stores, foodservice (e.g. fast food restaurants), mass retailers like Walmart, the club channel in retailers like Costco, and the Amazon marketplace. And international expansion presents significant opportunity for incremental growth over the next three to five years. With the Celsius brand basically at full distribution now…growth will be unlocked through a strategic growth framework that John Fieldly recently branded as “more people,” “more places,” and “more often.” The other major aspect of “Celsius Holdings and PepsiCo strengthening its long-term strategic partnership” comes into play, as Alani Nu will move into the PepsiCo DSD distribution system (officially starting in December). Everyone knew the most obvious decision to optimize for a “short-term reward” was Celsius Holdings transitioning Alani Nu from its piecemealed national (mostly independent) DSD network to the PepsiCo system. However, I can’t fault Celsius Holdings for making A LOT of noise by effectively “pulling off the biggest “trade” the U.S. energy drinks market has seen over the past decade.” But it’s the question around “timing” that has me fired up! But it’s time for Celsius Holdings to prepare…because winter is coming! Firstly, Celsius Holdings efficiently must handle market challenges stemming from swapping Alani Nu distribution rights. Next, Celsius Holdings must successfully catch the Rockstar Energy proverbial falling knife. Then, the shift to zero sugar, functional energy drinks, has essentially fueled one of the fastest-growing segments in beverage…and Celsius Holdings had been unequivocally defining it. Yet, with the addition of Rockstar Energy, Celsius Holdings must now reorient itself top to bottom around being a total energy portfolio…and not a performance-forward and modern energy portfolio that possesses this powerful “challenger mindset.”