Celsius Holdings Inc (CELH)

[kbaz]

TRENDS
Sports and energy drinks remained very dynamic in 2012 and sales were underpinned by both new product launches from 2011 and 2012 as well as marketing campaigns by leading companies like Red Bull Nordic. The latter increased off-trade volume and value sales by 28% and 31%, respectively in 2011 and strongly contributed to the overall growth in energy drinks. The 2011 release of Femme Natural Boost by Femme Natural Energy also increased, but is it is still a small player. Volume sales were also further boosted by larger packaging sizes in energy drinks, such as Monster from Coca-Cola Drycker Sverige. Sport drinks were positively aided by wider distribution of the Celsius brand from Peoples Choice (Celsius). The brand became more widely available in the grocery channel and this boosted sales in 2011 and 2012. However, the brand is highly debated as it claims to reduce weight and have a very high content of caffeine. Some local city authorities have even banned sales of the brand and the Swedish Consumer Agency is investigating if the claim of weight reduction is within regulations.