Celsius Holdings, maker of the premium lifestyle energy drink CELSIUS®, announced today that it is enhancing its innovation and production capabilities with the acquisition of Big Beverages Contract Manufacturing, L.L.C. for $75 million. The transaction, which was completed using available cash, closed on November 1, 2024. This strategic move grants Celsius access to a 170,000-square-foot modern manufacturing and warehouse facility, enabling improved supply chain control, faster innovation cycles, and increased production flexibility. Based in Charlotte, N.C., Big Beverages has long been a co-packer for Celsius, and the facility will remain primarily dedicated to manufacturing Celsius products, with its existing management team and workforce staying in place.
Strategic Rationale
- Vertical Integration: The acquisition allows for enhanced research and development and opportunities for limited-time offer (LTO) products, all within a turnkey facility.
- Expansion Potential: The facility can accommodate future growth, with the ability to increase capacity as needed.
- Cost Efficiency: Anticipated savings on a per-case basis will improve leverage and margins.
- Strong ROIC: The acquisition is expected to provide a solid return on invested capital.
- Earnings Growth: There is potential for accretion in earnings per share.
“We believe this acquisition positions Celsius to significantly enhance our product innovation and production capabilities, allowing us to continue leading the energy drink category with our delicious and performance-oriented beverages,” stated John Fieldly, Chairman and CEO of Celsius. “The skilled team and modern facilities at Big Beverages are among the best in the industry, and we are excited to work with them to inspire more consumers to live fit!”
Fieldly emphasized that vertical integration represents a capital-efficient growth strategy that aligns with Celsius’s goal of becoming the leading energy drink brand in the nation while unlocking shareholder value through improved margins and profit structures.
Founded in 2019, Big Beverages has established itself as a reliable partner for prominent beverage brands, recognized for its dedication to high-quality beverage production in the mid-Atlantic region. Celsius has utilized Big Beverages as one of its key partners in producing quality beverages.
“The Big Beverages team has enjoyed a close partnership with Celsius for over four years, and we have always felt like part of the Celsius family. We take pride in our achievements together and are thrilled to join the most exciting and best-tasting energy drink brand in the world,” said Ryan Goff, CEO of Big Beverages.
