Celsius (CELH) 12 May 202020 Q1 Earnings call transcript

Greetings and welcome to the Celsius Holdings, Inc.

First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

pleasure your my with Cameron now IR. Hayden is to host, introduce Donahue It Mr. you, Thank may you Donohue, begin.

quarter call. Thank appreciate today first you and joining earnings you, good us for morning Celsius everyone. We XXXX conference Holdings

and Joining me today Officer. Officer; call on Financial Edwin Chief Chief Fieldly, Negron, are and Executive John the President

be will time. that remarks, Following call your at the we prepared questions given to the open and instructions will

on All the SEC filed website and with issued materials its are release press company under available The celsiusholdingsinc.com the today. company's section. at the Form a Relations XX-Q Investor

before to reminder, available replay a later I the be As turn the over will John, call today. audio

law Please forecast, today XXXX. the These also the forward-looking any required on forward-looking expectations Celsius in contain update SEC and and disclosures may statements involve additional today's to Holdings applicable obligation contained other extent encourage press to May XX, any our duty no undertakes numerous you to this including beyond safe in to be of and of information. with quarterly are aware harbor as the risks many information that call as filings full by company's for based review statements, our and which these uncertainties, Except are release We statements. disclaims available control. that management

Fieldly like turn John remarks. I'd his for President Officer, the to Executive prepared that, and With call over Chief to John?

for Good joining Thank today. and you us you, Cameron. morning thank everyone

for and efforts, by Celsius thank support. our thoughts their our with all of to COVID-XX. partners impacted and members First, are want been dedication, and team all I who those prayers And have of

history, operations of any manage during macro quarter environment XXXX to new the performance. have recent who We challenging unlike have are team The organizations of to incredibly business. in maintained and ways and we respond in grow was creative the and of seen first their integrity other proud our our

of revenue quarterly record, XX% Europe an of set and challenges North of XX% another was increase new year. due the At in over was our in toward up with rose beverage demand to and exponentially, acquisition versus continues conventional of trend the Consumer above alternatives up part was we industry last healthier in $XX.X up accretive Food and to pursuit Celsius, sales XXXX million, the Group revenue America as Asia beverages. Func well. late

To disrupted, the Although at and in consumer including meet with consumer habits Keurig gave severely traffic home Anheuser-Busch in to while complied distributors, networks to Dr. agreements been expanded which ordering, PepsiCo, purchasing availability demand, tremendous we purchasing new way traditional and our partners secured curbside additional regions. primary with stay pickup, InBev, orders. have patterns U.S. Pepper online pantry increases shopping distribution consumers Monster, MillerCoors further

XXX store includes than We which are national to regional distribution network, delivery build continuing now a DSD more or partners. direct quest our

Our also us growth. additional to DSD provide incremental routes of partners with points market for

we average same-store transition sales we Across New the our that have more to the in addition, saw the transitioned Target partner metropolitan and volumes sales York wholesale XX% the In area saw of than X-Eleven U.S. top market, Geyser, network in our network doubled. in increase DSD volume growth and Big board, to XX% on DSD an rate. stores from

reaching more are of we as accounts the DSD points our more distribution. XXXX consumers planning more planning continue -- for on more DSD and throughout We of network transitioning partners at to pursuit

gain transitioning we news partners for additional distribution Celsius event Energy to recent network. to expand a national to additional as of network, further Bang the With our this up distribution opened has PepsiCo continue -- opportunities the to

flavors consumers to through than the Walmart, data store largest retail indicate its reception of locations added availability product more the we XXXX quarter, our strong from be channel expect retailer. in by the During nationwide next country's reset. we additional the launched at Early and

In further back DSD between through over warehouse additional coverage. to and addition, direct going as XXXX these XX% transition launched through half and and of gain their network split the about expect the DSD we we Walmart, existing implemented within Walmart's to

our structure appealing CELSIUS at a label which addition clear partners, retail sets to expanded Green branch and five assortment tasting HEAT a performance great energy stage Target, as addition available redesign, with product of and brand our audience. with key refreshing In proven while effects the twist brands one nationwide a credible taste a and flavor, Grapefruit among our tangy highly in sweetness of function category reinforces introduced we to exotic differentiator Its our Melon We Tea. packaging. burst new of for digital the position flavors the clinically next Jackfruit, claims, are broader of newest growth. The standout and a in and the our packaging phase and the tropical

us continues Clearly, COVID-XX momentum environment by our to despite extremely in volatile quarter business virus. the brought an and the uncertain first

driven quarter unique give success strong that several was key and by first are Our a Celsius the factors to advantage. us competitive in

network We to and and challenges that COVID above the a enables are of extremely rise pandemic. growing brands, partners have sheet and facing us distributors, strong amid that a retailers, diverse an strong many balance companies

outside pantry The the of enabled for purchasing. normal in emptied result as situation product material As and were despite when of we positioned grocery, April of channel quarter a late consumer We balance as drug impacted. the the strength early well that while planned quarter March retailers were during patterns brands of unfolded, as demand very mass build their inventories us were sheet increased timeframe. with channel, and ordering major continue the shelves inventories anticipation December our resets and buyer were raw increasing the the as to began first other in to partners orders

shelves decision retailers, level partners. Our distributors And steady. our and inventory were to adequately supply to we normal able to our provide with stocked, of management throughput chains a and our levels return due more around remained higher support,

home well in Hurricane being working addition, South we in very In who operation we from to continue place, workers see were many seamless. of plans to our Florida, transition also are located making in positioned, Alley now our

is our to that marketing significant and with of the our integrated a consumers. critical a of primarily pandemic, at programs growth connections Up Critical live that creates our until of consisted emotional meaningful gatherings. component large marketing COVID strategy virus reached plans strategy mass consumers

we energy Fit for and consumers high example, Tour, Live Our new integrated where competitive activities fitness thousands in tens of of settings. reached

of the to And front in ways quickly home find events and gatherings people to to came marketing were our get stop. a orders, innovative challenged stay we strategies With at hard at large of consumers. pivot

we resources activation offline a marketing programs. to WITH account. out and experience. from experiential our a consumer organization, create virtual where connections was nimble launched SWEAT [indiscernible] That small example Instagram shifted in our a we [indiscernible] is April, on work One platform online live that As enable CELSIUS, quickly streamed a

centers well-known used facilitate workouts the located three home and we With fitness local program throughout platform closed the consisted connections country, fitness the consumer hosted of at through across Instagram gyms country. weekly trainers by to workouts. The

and The require different normalcy, new workouts the try all maintain fitness offer sense no followers levels. to and for a chance workouts a be modified can equipment stress workouts, minimal to of release

space it's workouts. energy The come drink also the HOME continue communities we outside even partnered fitness Series SWEAT nationally Celsius Barry's is streaming LIVE Instagram the is together profiled LIVE HOME of with powering AT leader AT official the addition partnership to WITH were In and Barry's, FIT helping in and a CELSIUS, as gym. to

of deploying sponsorship too audiences highly energy the also such our Instacart, leading to are millions within targeted We of more online as XXs home a with delivery deliver of service. campaigns additional grocery impressions aisle

bodybuilding.com target.com, in walmart.com, recently, the from on to which Amazon leveraging United gain are able and we energy line, drink tracks continue get data States. we Amazon addition, we momentum. were In Most sales as to stake

April ago X% increased third to and for sales building the was ending behind the the the dollars with energy the Celsius. Amazon demonstrates and period Red momentum in XX.X, the drink within Celsius it's Bull. Celsius indicated are of ranked a growth XXX.X% brand Monster category in the XX, within And largest which sales in XX in share year we weeks versus same category XXXX the further category category

workouts slightly This may did smaller While to for positioning green just different fully to gatherings, outdoor our look and and were are we from planning than XXXX half begin and given to we events reopen shifts highly it offline already expect the talented more to of are back perhaps gyms and light. second approach pivot given the team as quickly gatherings virus the our marketing signal. before offline when rapidly consumer online, in with the we activation

additional the our and In Group Food Europe, synergistic benefits seeing we Func are future operations great and integrated see opportunities. further in

was the focus reported among and during quarter, In their in market operational energy the addition, very are performance the Nielsen we it improved further pleased fastest which drinks the with. data. scan execution, per through Celsius, improved team was first Sweden growing

a team which strong launched impact success, great marketing targeted tropical the of experiential execution performance leveraging programs, flamingo and in-store quarter, Celsius despite successfully the COVID. great for flavor the the drove During tasting market, in superior with

engaging We was and quarter accounts distribution start expanding with creative focused growth first a to networks, Our on new a relationships mediums. and strong remain consumers profitable by year. and existing nurturing the our of variety through driving increasing

and in broader is -- growing in are market. to changing adapting very that We we changes quickly industry rapidly successfully are an the

remain our consumer any will the the if business what demand our on few shocks next growing on we healthy functional ability capitalize over predict, to beverages. confident and in difficult long term our it's the While impact maintain to macroeconomic for momentum quarters, over have

growth we and prior in of further growth ability category. COVID provides we may results on operations. impacts foregoing, seen outbreak have in America, we the in us As have confidence orders over the maintain the uncertainties seeing of enter momentum Notwithstanding quarter, the our to our approximately and are year, from North which XX% unforeseen the second unexpected resulted April on the

over Negron prepared Edwin? Financial will now Officer for to call turn the Carballo, remarks, Chief his our I Edwin

Thank you, John.

a same in was to months in $XX.X volumes to the as period last high, of three increases was $XX.X record to million, March increase opposed the year. compared XX% for pricing. ended increase or XXXX The sales an $XX.X in revenue increases million million For XX, product revenues due overall

a growth year XX% record existing of increase million revenue Consequently, for when and quarter America, reflecting new expansion delivered to geography, was expansion to retailers. increase at prior growth attributable quarter. revenue the accounts American By the compared from $X North or continued an million in $XX.X XX% double-digit both the strong including world-class distribution North

$X.X from the quarter was an million the million the reflecting or consolidating markets of the first of operations. of impact results $X.X to European our full compared Revenue XXXX, increase European of

totaled $XX,XXX year revenue to period. the in $XXX,XXX Asian ago compared

from Revenue and quarters to China fee our other and first amounted in the for effective change the January reflect X, now XXXX results XXXX. license business periods of XXXX royalty both all are Asian model comparable, a areas $XX,XXX. to arrangement

profit and impact months margin pricing. quarter. margin quarter geographies, dollars the as $X.X $X.X translated result the margin increase by XX.X%, million quarter. consolidation to operations increased profitability year in all for of across European million gross [XXX%] to million an profit in $X.X quarter. favorably the the Gross in product $XX the in volumes million for of ended gross this in opposed XXXX incremental reflect up in the compares first and in profit three the The of or increase sales from profit of increase Gross increases to XX.X% the XXXX, ago first XX, which The to March XXXX was of the

of $X.X $X.X XXXX. for the of million, is operations. to marketing or the sales three increased which March XXXX million The were partner, Consequently, reflect expenses or due Selling was marketing XXX% expenses same related the increase million and quarter reflected expenses the to XXXX. operations in million first XXX% from European quarter the consolidation the the the Nordics not all marketing of consolidation to other in our months the of an increases $X.X $X.X mainly XXXX of of increase ended Similarly, compared for and impact results. XX, the

investments quarter, the properly Specifically, resources markets. employee also cost our in reflect to increased XXXX $X.X quarter to XXXX from and million service human the or XXX%

our investment and and costs volume, in business our due distributors trade to the activities storage to Moreover, $XXX,XXX in increased by increased by and support increase $XXX,XXX. also distribution

XX, an administrative This to our impact increase for million, and of months ended million $X.X March three $X.X partner. months the similarly compared General the ended consolidation the the or of XX% three the XX, reflects expenses March million operations of for $X.X XXXX. increase Nordics of XXXX were

reflected three increase an XX, reflected increases properly the to debt compared risks $XXX,XXX months quarter. general an or resources expenses administrative included in our to for related in such, of amounted an to March increase As of All other ended and cover support which situation. investment the in to $X.X $XXX,XXX reserve prior bad million, COVID-XX our potential costs business of order but associated consolidation only XXXX the addition volume. Employee our expenses to order collectability higher reflecting business, with XX%, to when not European administrative also $XXX,XXX year of for

the a the losses when $XXX,XXX, of in the our quarter interest profit total of ended items expense for net $XX,XXX of year Below which results included compared expenses $XXX,XXX the beginning foreign XXXX related other change of the include Furthermore, prior operating at million of for were with $XX.X all and million three amount XXXX. line, results, $XX,XXX. an XXXX, business to of a March which in expenses China model $XXX,XXX, of the other recognition net exchange expense total $XX.X amortization the XX, increase receivable the gain of reflects to connection to note months

result of or for As the first of the had company $XXX,XXX and quarter EBITDA on basic compared year compared ago receivable. in $X.XX $X.X first this of of gain to $X.XX all recognition XXXX net quarter note net of income for the the the diluted was XXXX. of per per activity, income $XX.X diluted a shares the shares, million to $XXX,XXX or [$XX.X] quarter which million million included Adjusted the

been this our our non-GAAP believe visibility the included and comparisons EBITDA non-GAAP We of overall release. to understanding figures and effect, reconciliation of a in performance. our business of that has adjusted results financial true earnings other enhance To GAAP measures information and

the As The March compared by the growth had regarding $XX.X $X.X an the of XX, $XX.X capital to reflecting cash the to million our XX, compared XXXX. of three used in months as a related support as working an mainly ended million million disruptions to of inventory totaled use XX, working had XX, any March March company $XX.X during XXXX million, minimize in of capital business in also chain XXXX. XX, XXXX Cash million potential December situation. as XXXX of increase million precautionary to measure operations of company $X.X COVID-XX increase as to of supply December $XX.X and

the prepared call our you concludes That remarks. Operator, Thank questions. open may for you. now

you. Thank

Please Bain with We question question-and-answer will of session. [Operator Capital ROTH now from Instructions] question. be first your line with conducting Our David comes Partners. a the proceed

moves Rockstar for could Bang, by segment great all kind the quarter. when activity your Great, thank first you. of And Anheuser, partners prepared congratulations remarks, segment. on for Celsius, the further look becoming leave seems for in on the a more repercussions and energy acquiring more broader we you Pepsi to distributors such distributor of I'm potential the functional hoping opine in you one and touched this holes but and from at as away on

acute potentially I guess deals is larger, of more shifting the a the industry question in activity is, conversations segment wake distribution of kind the trend? to

you the When a and that of regards remarks comprised especially what an lot notification in quarter at transpired, Anheuser-Busch network, moving during opportunity it here, out of touched the most independent you it for briefly thank prepared on in Bang the question. to Pepsi. recently providing Dave, look XXX% and to is distributors which mostly I Actually there

other XX was Pepsi. making days So taking really transitions now next, hearing seeing word already there'll in over the place markets Bang over the distributors from those we're the and where self-distributing to transition we're right be

there there opportunity. where is of So there a lot is disruption disruption is

networks been disruptive very for Switching always brands. has

in the of So very take we advantage to marketplace. the are eager disruption

tremendous within Bang, out also lot has but going has So drink channels, also affected taking within and of of COVID-XX, even energy being on at the in fitness a -- and you with one extremely traffic with amount category what's the the when brands in there convenience which with place channel, look also been foodservice. effected what's a changes has been -- and

contracts position, in Bang in dialog, feel challenge good XXX and we're So with in feel talking and ongoing. But a were was changes ones conversations now a in really there were we're discussions with it opened a to ongoing distributors these taking good we we and we're of had We of place really spot. has is a exclusivity that lot place We have that had right now. because distributors. the already up lot a

very are on wellness and for the Some Bang today, of are the side here distributors the on are that capitalize Celsius. excited that releasing we're trends to work to like with of opportunity well we this other think going away. positioned not health And the

Great.

you as do may little more it you bit Now up here Pepsi with be and add that Bang? competitor Alternatively, some opened promotional distribution. a sounds things to disruption think it's major switches mentioned a like

so. think I

I in back key talking retailers retailers to July promotions to promotional a see think they're summer into with drive included happening in they're innovation, looking activities and store, consumers beverage going want be those into the for pricing, and for you're already looking activities lot programs back new timeframe We're get to to many traffic special season. of really retail. August

And process some to programs. we of teams on of online good type in we online to our those included whole relationships, built to our with those we've this retailers be feel customer partner a activation with really been repivoting things, pickups, our through work on

some awareness of CBS now, example, these the advantage on of Target take drive to retailers. we're as well X-Eleven off and and to an working really opportunities shelf with Celsius with programs on As right partnering big as additional

and of that pricing it category seems going the think beverage we premium have we aligned and be category many change. but So opportunities retailers, is activity promotional which position once strong to on you're to not with the I going a pricing summer see season, to in lot into remains overall a head

to performance functional category And that you, category. that country the of retailer grow premium Celsius expand is evolve a for on. a major every position better energy looking in driving are as and We category that continues to is this component is

the comes Jeffrey Please proceed with question of question. your Ladenburg from next line Thalmann. Our Cohen with

great So will four, read to questions my I five. keep out,

where the talk spike European can the specifically of that growth in Nordics, are about tremendous outside So you seeing volume from? you

--with look quarter of European to accretive due the recognition, Sure. When you're full volume, seeing acquisition revenue the the nature. that at of you the the

-- drink see growing the Sweden did Within one. within was the the quarter good I in brands the revenue the we was mentioned according of to energy Nielsen. growth Nordics Sweden, Celsius So one as fastest during

where Norway and derived that mainly the Finland. are in very downs from markets, keep the took challenged during And was the sales which due is other lock that mind place. market The to quarter

So really the was taken markets has market and versus Swedish Swedish all the the a approach driven around growth by the different pretty much world. market, other countries

just why that's finding we're there. the So growth much of

could it. introduction edition, Peach sold? Vibe and being talk And of that about Got you the where online the is limited besides

excitement bring Just Peach many our flavor, announced Vibe, retailers. our to newest

we'll it's you. Just fine as out over rolling authorized and and right a available on to country have around now, retailers the now, in to Amazon planogram's next retailer reset. be the many near other get Right it soon months retailers several

got update bars And can in it. closing and America? Perfect, any you talk as Func? And snacks the of far as North about

gone I extremely the acquisition think Yes, has well.

to we with in continue we'll the organization, work working evaluating warehouses, some. a We're situation as from had more and synergistic well of in we've really suppliers, looked have at initiatives, a on further renegotiating over still been good to COVID currently delayed within line bringing And We're team a share the that lot lot have and protein you lot as that opportunities of bar we come. to functionally collaboration. to over America. good We as things, cross fast we a We scale. Due have contracts, margin grow. of there, sales -- the working North there's and quarters [indiscernible]

build? in Okay, Edwin, $X.X your got like increase. it. you, can then lastly, inventory for about talk comments the And million you I about and were think looks the inventory It

how to domestically? territory relate product least using So specific region line? that counters that is of at lie or to and does it where the does And you're number or

mainly The translates, able And so to any inventory. of some yes. Absolutely, that days question. just $X.X here good sure our increase million, perspective Very you. to what we to disruption chain if $X inventories, we that in is that did million increase thank U.S. we and were that of the XXX supply you in give the about yes address there make it. Yes, is

it for, have levels to not perspective, was wanted we plan move, inventory summer disruptions. that that strategic from obviously good into and make the So that season we sure selling had any something coming we of

So, inventory plan demand for And only when something it did absolutely have obviously at to historic but look was not demand levels, look future we well. then you that yes, at the as also knowingly. we the

your line FBR. next comes proceed from the Van question Our Riley with question. of Sinderen Jeff B. with Please

touch as XX% business Walmart of give DSD to with Then go? with expected you where color on and maybe you how believe. mentioned at you're retailer? there, more give sense I point, converting how us there? latest that your seeing what that is is are at more on You trending to DSDs us Target roughly Can a sense, Maybe this DSD

Yes, you, Jeff. Thank absolutely.

with the We them over one move key are to model over our flip every partners. wholesaler over DSD working and direct a them to retailers from single of

just at need better better touchpoints the placements, we better is we're in-stocks, rate retail. due at turning really velocity, such execution, Celsius Just that seeing to additional high a

Walmart seeing we're have we stores DSD are by serviced -- great So being there. results at the and

rotation in We're velocity. seeing dry it and in coolers, the good shops seeing addition to in

over that stores We're the territories. poor these execution working out build serviced supplementing to But stocks also are in as markets the in other as we through certain out doing warehouse. we retail, with They're of on flipping seeing not are what DSD merchandisers. The that is so those we're going well. and

this back we'll confident been moved to half buyers feel we've have year, closely preferred to working Walmart's this in of more with the route very So we over and market. the really

coverage. flipping great serviced We're we now. from over DSD. seeing warehouse right the by there with are to five identified a be The York metropolitan months Big the to national Targets progression them diligently next markets and thing DSD the signing And the on working we up We're warehouses, working few velocity over going where market markets. Bang news we markets, our with and And in other especially on as on we're are network. rotate Target for also in over moving have same key further already flipping key with We have Geyser. distributors New those

also, regards So as have in with with alluded kicking there to in promotional a Jeff's Target. we program big question, some them big earlier is off July planned I with activity that is

So over drink that model allow five energy great the quicker flavors execution will great -- looking placements, and player volume, drive to we're move for and us, category their us where at additional big Target. already to a a be DSD seeing up in to momentum. we're to move account we're Target's

more to are early, And reopen on know then are but of in U.S. and your country starting anticipating give the the reopens? the color that any what great. Okay, then seeing regions you it's in I businesses you us can as what you're some in

future With everything very going the it's as say to uncertain on, we what about, talked hard holds. it's

current and say some to businesses current in in seeing come back. key open it's the really to and markets, countries and gym some the environment reopening, you're restaurants see channel Starting With closed environment. the hard

in pulling and initial feel estimates provide were that really on but situation We publicly week companies don't up forecasts. do companies the in position which say, results are based is and in will the April April, energy be What XX%, we future energy by for a but and better we it's functional week that's the we the I orders many drink we other environment in a taking are maintaining do macro still but beverages momentum. with guidance, said category. to healthy place everything taking good what's in you determined, for broader in category, overall really holds we're place good CPG feel

just Any are Okay I how us plans the how plans thinking more term then if about you you you're plans marketing for follow-up to and the as near for to could color as U.S. one and on that. -- more reopen. can evolving flexing give add

foodservice through opportunities. we the really lot really about current nimble thing That's we've teams one organization. being all marketing online and of great help grocery team, our vitamin still they out during to fitness pantry realign open repositioned a as repositioned merchants to integrated mean and I to quarter mass Yes, were further first and are We regional on specialty key the sales market on our them programs a stores, stores, retail working with team and our the reengineered, which loading well. integration that's our

integration. we momentum, to cautious then, amazing consumers going that's our shows leverage a base into to achievement recent continue communities, back we to most and So category key move provide and critical And need safe our goal long-term our to Celsius the we is lot to to further to is which drink out continue the for the of move we to to segments and just we're through I our that lot emotional and live so e-commerce, continue we'll some It momentum being data social with to be drive and our touched team. there people to but you want media, very the of fan permit have, and be help into build but engagements other on the as to support continue healthy well, going them. a energy process, our in online as lifestyle activation, largest success. markets got, point Amazon It's on the is third brand better

with Anthony the Maxim Please comes with question proceed Vendetti your next Group. Our line Instructions] of [Operator question. from

online Thanks. this you was whether about for terms quarter of if drinks follow just I -- little for talk this just you were your total bit at up to were number -- specifically energy believe COVID-XX on growth tell wanted John three Amazon. a on in Can what the made Amazon the to point quarter? you us this the you positively online? or quarter on for you could Amazon impacted And due you

the online last our shopping really sales rates the Yes, online strong we've at was, Monster business the has over Celsius that has spikes of Anthony, same but if the shifts, were able growth Celsius in the to six Red Bull. growth internal was the overall you area many brands been a five going other in that years, great and been other. our years it the look as see And Yes, thank for to back of outpaced generate. you online at velocity some business including it pattern as -- the very online lifted even years, we tide there with

strong we're What foodservice products been closing, some other transition fitness what volume channel routine. with the also able we've a daily has over is seeing of see Celsius lot are So of and part been brands and the growth an to really great lot a was of impulse saw we convenience to see buy. channels to

very for we a building we been not what the think and part over here. continuing opportunity I have. of lifestyle. that's opportunity shows we've We're an are we the impulse have buy, what last just years, build the you several we're critical that's daily That's that to

gets supply contingency chain positives Then about down seen chain on of there some positive mean, little Can if plans sort if benefits some you that. you from and I do just have, prepared, the, you negatives you've a road, COVID-XX. the the your obviously in last at supply Okay. terms interruption, been any and the the what follow-up just bit has of one that constrained talk point?

as all that we're everyone, pivoted to place taking we supported and trainers to communities. pivoted I given do campaigns businesses this country able to what's demos have we around base a and hear us Celsius around think pivoted we country. to over help -- as our trainers cases hopefully and were terrible and platform need positive, thousands them where base client consumer of their small CELSIUS hospitals out organizations. their We with many help as pivoted that they really mean the WITH heartbreaking build to doing small We repositioned and SWEAT with we to situation in the and samplings we is there's personal weren't on so quickly our can XXX going consumers and can, that to give think sales scale we help to it's I I don't positives, businesses,

set process. inventory, operations, Edward sales, in marketing, those each this and has reviewing starting through we from and going going constantly those up in altering to on to January, as accounting, plans department we're really As contingency mentioned to

place. periods we've a the orders in supply. had increased implemented We've sufficient further sure co-packer whole plans networks. throughout placed quarter. blanket contingency for have the expanded out ever we purchase also So inventories we've to make We've We before, than

those. where at availability have to several case co-packer down multiple we our we've is about for heard go a there in which So weeks, stories situation had co-packers

and really lot results able been There's the been the to working they've reacted seamlessly, company many? work organization just we as been up, to has have many this from home, the as through But we've seamless amazing job. the a well the but been stressful the has and circumstances the the done went nimble. it as cohesive -- I that and it's environment. has continue done as it to shift considering think and Has in for an company it been employees difficult, pivot team not But do Transitioning in put organization as done. Absolutely. a very current

next Capital Please Bain Our question Partners. ROTH a question. from with question the David of proceed line is your with follow-up

it dynamics. company shift these if a and -- Great, options I back becoming could [indiscernible] If just seems functional with the distributors for Celsius. growth the like distributor anywhere just more seems thanks. finding are near a to quickly relationships It limited energy like category like industry

that though, look the the a found take of itself. position a company historical to lot distributors them the we at looking would a in Just lot partnerships, of

these kind major versus or structure? with then more more on fragmented bifurcated distribution of aligning one on considerations types and player any thoughts partnership structures also of Just any

opportunity. Dave. out company, is drive best with you, our with a and to We're Thank relationships at lot possible drive We're distributor and going aligned for what's do distributors the velocity to best Celsius to Number X. best market shareholders to goal. variety organization, for looking opportunities, a making and a investor, that for of That's we them there. There are reviewing working the our best on we're we're for variety sure the the of of

the at opportunity to position we specifics very hand. best on have maximize we continue going much shareholders not distributors, aligned given we best what's going into contract with do possible in get to Celsius the So with interest put are to as negotiations but to

the question. from comes Mark question with Boyd next Shawn Capital. proceed your of line Next with Our Please

me Real right bricks and from little us mortar quick, forgive your a of versus naive a if retail you now? can and sales bit, online just help if what is fairly a this question, but are percentage

be all partners quite our little historically because many that retail used services. information, disclose with it's -- of to honest online offering a we to fragmented you, are We

walmart.com, online So there. bodybuilding.com, we're we look we've are on is there at There is Amazon.com, on are many, is on many.com expanded out business vitaminshoppe.com. -- when you we

we're business. and at leveraging out direct, not is on a I online drive we customer, Walmart.com, to dedicated leveraging you're our want to with to retail different now purchases if partners many there have home our Instacart, services, or online one Amazon We we through don't take do sell so retail our calling partners pickup mediums online team delivery. partner

So our there online business. is businesses online

So a specifically, it because -- is that I can't question, component. it really broader is answer

you Okay. that. I on hear

can how this over and of And on change, help XX the come me heart serviced to you XX think today retail quickly to are over [indiscernible] at another to but I just this, maybe of that way we then us the Let would if months? the thinking you your right in to in by of go next shift be, let doors impact far the the sort number about the You've currently what are how number DFDs, the talked past. XXX, it over me now you've not DSDs? say of would percentage flipping as about

right now end mean, less at approximately today, we the roughly North we're year, the serviced locations And Yes, DSD. are by America. of I in announced of doors XX,XXX at, than those XX%

is will retailers these with you're of this I be these and And But on. the about been key say coverage. about flipping probably preferred method. this of the year what working all over this many serviced covering XX% in is we've would integrating particular right half are DSD DMAs warehouses the and opportunity massive, accounts key that's looking the by of to now that So approximately at back

other lift that New Okay, XX% has geographic that with on that you commented the in been markets? And York, very helpful. consistent across stores

even it's It has. areas Actually certain higher. been in

the in growth key the probably going seeing seems XX% accounts So direct accounts. lift to these XX% on existing we've like rate top versus a of good benchmark been

So about opportunity frequent sure a person sales and is disruption properly it's available given because make additional taking trade store and there on DSD all points activation. is placements to product getting the outlet great is advantage priced stock you're rotation in and that in by having coverage of the a the a and of and

from Really me. hear. good Last one to

year-over-year. Your comment XX% up about April orders

from low know that but see for that's we're month, first continue, assume it that we environment is Given understand reopening we is and sales you the mark additional the be growing an month. a -- we those with fair where it plans now gradual, as see but states here? move forward we're I just to to would assume to to we it's is starting monthly fair here, going

of some future Yes, channels. don't lot I return quickly know, I How questions of to going in mean normal traffic talk a these there's there. I'm about on this not what to

that. So I really on comment can't

no further to in closing management queue, questions the like remarks. the call back There for are hand to I'd

Thank you. behalf their interest. the to continued we of for On like company thank everyone

capitalizing considerable wellness our as are momentum are today's demonstrates products on health trends. results and gaining Our we

building leveraging are and practices. core opportunities upon our deploying and We best

a a consumers winning and growing market portfolio We strategy that want. rapidly and have

get to more team, ahead to and without opportunities is be very not mission them profitably. proud achievements dedicated significant we see consumers I'm our tremendous as would Our of Celsius our possible.

in everyone Thank their stay We our a all in I Please for this wish continued our have interest investors safe environment. day. want your In well. you addition, to for team. current of and thank support and great confidence

gentlemen today’s you and this teleconference. does Ladies your for conclude Thank participation.

disconnect have this a wonderful lines may at day. You your time and