Celsius (CELH) 29 Feb 242023 Q4 Earnings call transcript

Greetings, and welcome to Celsius Full Year 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce Paul Wiseman, Investors Relations for Celsius. Thank you may begin.

morning, good and you, everyone. Thank joining We Fourth for Holdings today XXXX appreciate Earnings you Quarter Conference Celsius us Call.

Langhans, The Joining me following Chief Jarrod and John the Fieldly, Financial on the call Executive today prepared remarks. Officer; to will open call are Chairman Chief questions Officer. and

The its website, well as as press the SEC's fourth release and this morning, celsiusholdingsinc.com company materials company's are website released sec.gov. all available earnings earlier on the on

today announcement later can As link call an will with a same be audio this the available reminder, accessed of in replay be our released. and live webcast conference call

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

of quarter GAAP both accordance for release of measures management that in the reconciliations in non-GAAP non-GAAP adjusted to fourth Additionally, we non-GAAP reported a financial our detailed as with use, results share these XXXX. will basis. our operating and the on EBITDA, measures and results GAAP descriptions of are such earnings as

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

in recently Wiseman, XXXX Vice our Communications. Senior is President Celsius the year call. Thank our stellar Also you, today's as company's everyone, history. and welcome joined quarter, earnings a to Celsius best of Paul fourth welcome, who to

with XXX% a million now greater and XXXX, ACV in just We ever have sales or occasions finish topping $XXX before. billion to United truly options size set revenue than In more is yearly a billion. more reach at flavors of $X a consumers distribution new than Putting in brand. Celsius was year nearly coverage complete more Celsius products over $X.X the growing achievement. record, consumption major XX% in States, achieved and our the

held Our have impressive share gains break in IRI's in more to a ] becoming race. is share MULOC. X-week decade. XX.X read first ending [ company total Cercana a X-team XX, [ and February energy Celsius now recent According barrier [ resulted record a nationwide XXXX Celsius category Tanger drink energy to XXXX than ] of the in the U.S. new in ], The

XXXX, a just of markets. closest over or a Celsius As few those, U.S. A in dozen of them. taken already have XX our we January few competitor points a share are of exceeded had next within

whose delight Our sales innovation consumers sugar category pipeline overall strong has the to sugar majority. zero taste to zero for energy tripled drinks continues nearly a

Although Lemonade. we this Fizz SKUs, Raspberry have Raspberry and launched Free Blue Sparkling, new core X Peach year,

G Astro in ] Cosmic In Galaxy further the taken Odyssey, our Truly even Vibe Circle Space has new which in addition, Vibe and our X with [ flavors, of K. launch Vibe, Celsius XXXX

Celsius performance Aminos. essential which essential proven Celsius also with product launched Essential's energy has line,

thank on and methodical award. X exceeded has top I with with our approach drive team are want months prestigious recognized tremendous the pleased was in teams industry taking Celsius great very enthusiasm our plans weeks X-Eleven's achieving sales we award a acceptance results. This Supplier the dedicated and is and the our our internationally, X new just of all best-in-class pursuing expectations. growth We're after in consumer We grow our country, executing in business market We're the to XXXX a the members each best-in-class nonalcoholic enter. And Year Best-in-class to in sales organizations. marketing category. this achievement, disciplined in Canada

distribution increasing horizon. distribution, dollars areas: the Celsius full sold XXX.X% units the full in and each focusing top for through driver energy was the the of points again category growth year XXXX, in MULOC, and and fourth long-term year. are in up quarter, energy nearly in of category a driving XX.X% X on With we growth location, of the at expansion the ending channels supporting growing for international and total over the XXX.X% up all nontracked

as Fizz the several stores Free ] new as our consumers of noncarbonated available launched line brand innovations prefer consumer refreshing Fizz together multipack a who energy base. is brings and Already to and now loyal new this drinks. our which a Free update strong well [ year, selection Target we've A beverages, exciting have in to

Sparkling line Essentials, Essential across the United States Fruit line quarter ] unique flavors, SKUs. Tango the new bring performing of maintain of products our and sparkling, Celsius fourth X stores [ Sales to XX-ounce new beverage the launched a Celsius Energy, Mango Burst at to in X our X-Eleven and

of to acceptance ACV, AC greater As at across XXXX, has achieved continuing see XXth, XX% Celsius across a retailers January XX% it's February record Essentials country. year-to-date, the

a the January, to [ claimed power station XX.X grow on our the Celsius ] in according powder share, X.X% [ ] prior having energy position Sircana's in period. compared Also IRI to category increased the the commanding

on-the-go great on-the-go opportunities and see new Versal our plan innovations line. powder have ] this [ We year product several with for

XXXX, typically resets In began run spring in through and May. January

we're the XXXX. are of be which first incremental space second and We pleased reflected with quarters will very across gaining, the

As holding approximately for a reminder, in we share most XXXX when of category. the dollar were held sales XXX% used our X.X were grew while planograms and created

we was American we key fully a cycle, share Celsius is when partners shelf in partner position. XXXX retail conducted planning our integrated also collaboration XXXX, and digital with with held primary account. annual of PepsiCo close now double-digit anticipate North planning -- distribution QX ongoing expanded space into For and

of throughout more We intend than quarter and over up channels XX% were over placed for fourth XXXX in increase tailwind Our well. a full XX,XXX $XX.X resulted year. an year-over-year. growing million, we the perfect Club representing XX% $XXX.X XXXX. continue in store year-over-year. Non-tracked continue sales increase million coolers in sales across coolers base United Celsius of XXX% activity branded to branded a year-over-year. And an our display to the Club $XX.X year increase were for this as be million, States, us

on We million, XXXX, finishing year-over-year. achieved energy at the XX.X% #X the Amazon $XXX position increase year in full revenue a

on than to for channel. refreshing in of more meal great occasion, today, is taste and -- the Our a PepsiCo XX.X% our sales product the foodservice

are in Donut in Celsius growth example, XXXX, campuses vending, corporate stores hospitals, We For there and we authorized distribution more is nationwide. such incremental cafeterias for sell Mike nontracked in outlets, believe over and X,XXX X,XXX Dunkin' and opportunities to Jersey college more. locations gained as and than

sales distribution began in in Canada through We international. Pepsi mid-January. to Turning in

consumers had to after even signaled, Canadian delight and we our our results more month have As products. X of approximately sales, previously the so with embraced are we impressed who very

second million the International Kingdom January, and for full announced quarter. Finnish the sales Also United million the in channel and we a gradually reached agreement we in and the distribution with sales $XX.X for in sales fourth starting to in Britain Great begin the expect XXXX in Beverage of Ireland, year. $XX.X quarter Suntory

growth approach we're growth, expect taking we will methodical playbook We each our year. international to previously expansion enter. our market additional as in we be stated, international a and international new this And following

for quarter several it achievements the be we year, hand financial exciting to over I of. Jarrod to marketing discuss the and to full highlights proud developments Before have and

and season multiple fit. strategic As the to regular League the recently States in announced share week, of last a soccer its is investments our proud well Canada. and One's teams our with Celsius renewed as forefront team United team. racing players Formula kicked sponsorship premium league live sponsor a off key as Major multiyear global who across consumers iconic partner Ferrari placed brand passion of These and

discuss I'll Jarrod that, Chief over year fourth and pass Officer, full Jarrod? XXXX to our financial With results. our quarter Financial to it Langhans,

We had from placement, we on internal continuing also Not benefit increased great John. in continue external velocities. increased expectations. system, but displays only SKU and exceed improvement to distribution Thanks, delivering increased quarter Pepsi's improved are count, to both and which we another within we're

look our beyond, we As in to growth. invest continue QX and we to will

XXXX, months of Driven million XX, the increase the million fourth December by International XX% revenue $XXX million, for XX, the million our North our as of Revenue period increase. to $XXX American XXXX. in $XXX XX% business, where an from from quarter velocity December to an XXXX. revenues Turning fourth ended to increase XX% highlights. were $XX continue same months was X core for X financial approximately was ended

As it to relative depletion our hand primary turnover. consistent QX on distributor, relates to our inventory with XXXX in turns with our days

broader integration channels significantly. Moreover, distribution availability, service. key into SKU We're for expansion the quarter compared system, ] also in [ sales has XXXX contributing SKU resulted which distribution club and in our including and our growth are CNG improved now attribute within drivers, increases in benefiting found mix, new from channels products to food robust Pepsi the our successful sales improvements placement. in several traditional We volume increased several placement to with

fifth improved promotional December attributed to continue margins to Gross shelf demand. to XXX% the that quarter were consecutive approximately stock allowances. XX, maintaining revenues prior from The we million, and XX% operating and efficiencies to X fourth XX% is leverage Gross the was in quarter. #X year goal keeping approximately consumer XXXX, distribution profit quarter fourth from the the driving while in year of in profit within increased improvement the raw reduction material efficiencies Pepsi for months quarter. strong up $XXX QX sourcing expect we the margins product-based meet $XX profit gross our ended compared in to system, ago million benefits the across for were of

decrease to legacy were with as XXXX. to into transition network. expenses was the The termination year the XX% Pepsi million, decrease distributors quarter part approximately prior of of Sales of of $XX the and the for due a marketing approximately the costs fourth quarter associated

marketing invest to in gross costs in growth ] and with behind sales QX, [ line our continue our rates. We incurring

were We plan sales, of expenses our year in a sales As for distributor in sales XX% percentage first adjusted similar a sales spend as plan continue XXXX. to termination XX% marketing marketing percentage of a investment to of prior and compared XXXX. and and quarter in the

XXXX. X $XX of approximately General XX, an expenses XX% December administrative XXXX, ended were the months million, QX for and relative to increase

the quarter. periods, selling summer our activities see in hand and in in quarter, historical leverage to X% to with within and and the do As Even XX% significant prior fourth are back on this, We growth noted relative at relates was G&A tend by displays whereby the able have to advantage year similar activities a sales compared the percentage marker to quarter saw XX sales, the call. to third our of rates, continue we looking during promotional exceeded we seasonality are to the growth. marketing as we And able against the capitalize other some to we [ of the earlier strong not even season. John on our it G&A prior year share as teams that with ended ] as well fourth we take

full Looking year at the XXXX.

As mediating the associated prior this control you the internal in robust delivering in effors more controls creating as p will our were general much great our Costco environment. period issued around a controls environment. made IT morning, in we see We with ] as XX-K well and relation successful

in where some larger the of XXXX, handful areas additional of strides still there time huge made needs remediate. we areas a are to environment of fully control components Although

the thank the in IT great XXXX. finance XXXX. this our continued to progress With Celsius their dedication entire to forward like for focus effort to and and for that our and I in in team matter look I'd teams particular, said,

December of $X.XX increase relative American America International from in same million XXXX, period the to XXX% Now XXXX. ended the Revenue XX, revenues by ended full year $XX billion North in from an XXXX, months driven XXX% revenue XX, $XXX XXXX. to grew business. our $X.X million were the full approximately increase for XX North XX XXXX results. was of months December to billion, the XXXX for XX% year an

] from Gross XXX% profit $XXX improvement year of $XXX lower the profit compared in margins The of is to year December material period. attributed period. revenues full to XX XXXX, margin approximately million costs. ended months in XXXX prior prior Gross million, XX% XX, and XX% [ gross raw for in to package were profit approximately for the the the up year increased

QX As would expect margin margins be was with 'XX fairly and profit great XXXX. the maintaining gross in profile, made progress things we today, that in the stand to year full consistent confident

it operational macro both We time prudent and is promotional an believe some are uncertainty the additional into moon with from perspective, always we shooting XXXX. but that the around ourselves to for the environment give

the months XX% in brand, leverage partnership with and need We target well percentage can our marketing Bowl our One share. XX% now of in a the that, February, Formula costs. prior XXXX XX% same to sales termination in are to as did for year and recently as invest we next MLS level expenses. we our next Super do in seen XX announced multiyear market within adjusted will As in that the to that as marketing progress we activations distributor sales to within period, moving compared This the we the partnership. was made continue and our And multiple growth multiyear beyond with Ferrari XXXX, and great our sales, demonstrated the of but to contain

months versus the sales percentage a XX period. of as year expense prior was same XXXX the X% in for XX% G&A of

in a marketing a opportunity team build is to shop We XXXX and continue programs. be in will to will pace. methodical value-added out G&A leverage invest it and sales There and to and will further our be thoughtful at beyond, that but operations, back

Focusing liquidity capital and now on resources.

working had net provided we December XX XXXX. the totaled to and XXXX, in months December $XXX million of million activities XXXX, Cash million. flows excess ended net operating of XX, cash provided by the $XXX for excess in cash XX, activities of compares XX, in capital by December of operating As excess which $XXX ended million for XX months in $XXX

business. We to our in continue invest will

Instructions]. [Operator

Mark of Our first line the Stifel. with from Astrachan comes question

of Two for stepped allowance have And promotional see there to that expected just of for bit progression do I a even on it 'XX? better. meaning that about One, think gross number? maybe little margin, why back XQ, about we adjusting in little talk XQ me. how questions relative into Was to sort one-offs would bit a after quarter, accrual the last some in

like the with a filings sales, still And on scanner look the data did, it that undershipped in on I you somewhere your from a But and to inventories commentary channels then Costco and Amazon what looks you I standpoint a the between big you customer. look the sales what second in have regulatory meaning disconnect you the take in the what question, fairly the actually quarter I should if get appreciate sold what track channel. largest in at addition in disclosed like

could maybe that, with help So you too.

join well. Yes. throw on over in Thank Mark. I'll first the question, of part the you, and it I'll to as Jarrod

we're category. I accounts supply look at architecture margins, margins, the I team. the really XXX with a especially phenomenal behalf you full think our think maintaining of a the key team points. promotional chain on just pleased job within when for the on basis up pricing the overall We're year and

were When quarter. a launches is you that line, our look launch innovation had during really executed the a at which quarter, variety we Celsius Essentials the, fourth a line, did and we new XX-ounce of line, the

there's this a we're to forward. with a did for good margins I But where time, point year. -- going think the pleased and improve I came in, think the at team opportunities job that's pretty in So really

And of channel, lot the heavily, expansion display we the A of but in in our in But that the have especially or are of really you experience. Amazon see to the we gain well, done especially upcoming some up. on items display when results summer and on on large format. to impacted sets do with distribution a being quarter, cases seasonal we're keeping that see activity. have we regards And and really, -- from large placements additional as a food amount in really gaining We're our did that outside do competing still on lot and of we we channel, at look display format fourth we've within in of coming great the job mainly the half year. We the activity reset. partner QX seasonal inventory impact rest of we additional hope did did by club good did volume,

quarter, we highlights. for experienced are headwinds it to in additional the there I'll some throw Jarrod So any over fourth but

more -- John. did you're with innovations that perspective offset. reductions at grocery shape. to inventory days-on-hand Now a we're the just our a a the point, filled talking basis, in that QX hand Mark. and in But And was have hand to the good looking stress would of net-net right, would It's about, us across we our largest I because for of when on kind the pipe the distributor, of we say some maybe with tends our and mass days bit be little of on customers. retail a John's customers on you're total

Is If the just think follow-up saying X legacy sounds the so resets made to about you it it equaling and your Maybe going out, be it. the about incremental Got add as about the X:X, you're in meaning just products. shelf can't kind more you're of you offset a the innovation comments the net-net think we distribution, then. innovation like that case space. that

the more to meaning because got the wouldn't system of the take legacy Pepsi innovation the you've why So products, plus sales? legacy backfill taking

Yes.

we looked at QX. we consistent our when they're inventory to look with think QX #X levels, fairly their I customer, at

we even on. some though innovation did So take

we had to it's continues how and So we I really -- data in at fourth scan look it's, this if see think we'll strong the evolve. data, the quarter, scan

Yes, a it's Mark. good question,

the successful very thus across been being been all started incremental has to that just good on and can in consistent we as and very can of on got all good a innovation in I of days were we total, and tell we where rolling and and XX/XX net-net and think, you hand it far. shape basis, as we U.S., out see you were January, the our it's

question comes Grom Our of UBS. the from next Peter with line

largely So leveled things actually Maybe to was improvement year. towards latter just than that at to improvement the resets spring. you a you about of perspective kind we've look the you year-to-date, mentioned I investors get portion the share we've with some about Obviously, touched hoping now the market how to think out trajectory the of share on thinking is should rather here. surpassed start seen I some then how come, to function you but you're And start, sort guess innovation from think 'XX, of the nice of into seen shelf as would March more you've resets. trajectory to on John, that XX%.

You're now new on a focusing target.

that So any what a might from color on just perspective. new share target be

then Yes. at No. look future not within different segments within We're Thank you, but markets the going close we you that script, my category We're Peter. forward at also the in currently the within the XX and if Amazon. -- mentioned -- category XX in disclosed And XX on share have that give of where share categories. within share, ahead to guidance variety of you current trajectories any data. tracking a Amazon. to category we're and Amazon. the mentioned And look are do we MULOC a we -- at on We energy I key

there. a So trajectory there good is

going I for of when XX% XX% we've sales of is are all convenience. sold. in the it look you really about And the this channels. think at last opportunity And in brand us you is biggest opportunity the convenience, where variety through built

resets convenience the we resets take anticipate biggest where the to channel. in in right that's now place So the coming

just at XX a share. are We

energy a within So excited we're category. there look around the have food share category, just about you versus we're the the at opportunities if really XX you

before, a the Jarrod within we we've some are within script as we've mentioned, those have we're we're share, somewhere recent on between earnings the to share as closed XX in as points about And release. average, about at and we that XX that close we're well Amazon. a So talked data shared the

which and we're that working Essentials the year, So just this about. getting hard. we're working started which new doesn't team and is line, The hard is we're excited include XX-ounce executing,

perspective. explain U.K. I think just a helpful. else understand you've from how a distributor of markets Ireland? kind and of for guess international. Or within of people No, just just, we you gotten lot, more on exploring of that's choice contribution maybe should about that, additional narrative? us I'm be 'XX for Are then then And maybe but the year? you this follow-up any X this help the Can why would Suntory really revenue a a anything and question lot was sure the just And

Thank Peter. Yes. you,

we that one, I think and in about the about We're on also Canada. when the excited into expanding. number is -- really excited in expansion, We doing script. consumer It's we just the -- acceptance. international Couche-Tard. we're We're look at well, into X-Eleven really talked on we're went product

Canada the there. our announce we're Suntory to They community. Suntory big with is should to U.K., -- align our partner excited. So access is very One market. about go-to-market the our best thing a partner gym be looking on attractive partners that for did strategy. was for their

loyalty And expand methodical awareness, and of building approach on foundational a scaling. as we're really focused base we then trial, and that really grow, about

But we these timing as the international, sequencing expand size -- we know these cognizant through we go that's a loyal on methodical overall fast be markets, we quickly to approach we see before and want new I markets we'll as look and of as scale. foundation and through very as are accepted, that markets can in entering So we and building go that can. how to move think and we about the

really excited our partner about the comments we're Suntory. So regards, and there with those in are

next comes Our the from with Piper Michael line Sandler. Lavery question of

to should unmeasured how on like the in the we [ ] get your gave areas? big Capita There's -- and pending. would points of And some could I quickly distribution that. how look are, physical [ how lots how handhole might kind of trajectory momentum think just those under about touched You for close of Corporate of all examples, up, one those what ] University quickly love channels sense a opportunities ramp as

Yes.

consumption opportunity the variety you seeing our smoothies and PepsiCo energy, of when with coming paired increase TAM look is revenues, seeing product and Internally bowls is the excited need fast of We energy service. consumer really we we're at and outside that really look [ see I at there. sandwiches sells the broader how from consumers, a state. there's over when much you ] We're that think think traditional is casual. big opportunity here, XX% food everyone opportunities say, for being a about

So for bit it's opportunity too really a that how I early think us little big is. know to

have know to in a accounts ] Not probably We and [ -- as well able the a next and then as XX months service see us. but is this well further we we're opportunity. service that XX as we'll we additional do it at expand quantify some to food quick for as additional in as huge an universities expand time, opportunity is

U.K. the launches. just And on and Canada, Okay.

As ahead of for we spend ramping margins you'd those about really think revenues. obviously, XXXX,

you all spending us so just the versus should for -- how Or how give we else dip of about your equal, sense And to EBITDA expect can for in XXXX? looks? that for or a XXXX in or a what's think plans EBITDA margins

I'll Yes. for that comments. Jarrod over turn additional to

Yes.

for the different. close. in our and backup a We a be co-packer being think, of already where we Canada as also had the most to going using they're of So XX U.S. within business. U.S. border actually is, I Canada were miles so that little a population

of from think, launching rollout a we're at X. that So which that will growth, than different be the kind and we trajectory U.K.,

We markets advantages have we we system. be and as both out the won't and will do as manufacturing the in brand really there build awareness as the leverage build investment the same we within U.S. in So scale

either will to going a is infrastructure significant to there call some investment growth let's But it, some year. our or cost going be not this and So be be, costs of it component it's there. our

we that numbers able believe So discussed those investments we help that prepared remarks, as the we'll well. do to on be our

just noticed world to just brand is underlying though you not one a one there brand the we've Michael, when the in U.K., with -- even awareness is click awareness, look it, at ] really Yes. away. is we're [ in I'll And regards the associated thing surmount --

social of U.K. actually being up consumers So a lot and are influencers potential our our activations with picked in the media

actually bit -- awareness a initially we we anticipated research. our had So than little had more brand based have on we

we're So great to us. a market things going excited, for be

with from Our Gerald the line next question Wedbush Pascarelli of Securities. comes

Great.

X Just on margin. gross

Another here. But sentiment in ultimately energy category, larger take competitor quarter in will your a you've There's follow increase. the larger suit. the that competitor a high had XXs already rate

So this color think about guess, around a curious I when your high on would imply rate relative price thoughts this you the margin Any how do XXs upside would your great. event as happens, obviously managing target? peers. just your increase to gaps that year to potential there be

Yes. Thank you, to want Gerald, there's be a product. premium-priced opportunities. We

if variety we at look it a think I we're levers you competitively There's very ounce basis, of than priced. frontline different per feel just taking pricing.

as Essential also we're pricing your have size. We then architecture So new -- we pack as you have well. Celsius our XX-ounce. in just you channel our as launching extension with pricing a promotional also well well strategy realize line that we by -- And

navigate to So there's that. ways

the consumption really just driving continue looking pleased in to getting growth very we're with on ultimately, focused consumer really and in we're we're when here now think you and and consumption category look the that we're And daily margins finished I year we energy share the XX and share at revenue way convenience. drive started for. a just with

we this any price this make it's not long So increases something there's time. to future on point, at at runway But closely, comments ahead. watch going we're a

Understood.

more for one me. Just

related Day. in with benefited for we Prime your from at in Amazon expected, lower came channel specifically what than I line a little obviously with revenue almost least revenue better is nonmeasured think were a seasonal modeling second XQ to your quarter, absolute quarter, which your

the So helpful within any if be provide incremental quarter would color you on that the drivers could in any. channel

within a -- of is mean it algorithms. how on was fee well as Amazon, their great kind of a And their through shipments we the I and warehouses quarter, Amazon had based Yes. a lot there or in period. great the timing controls inventory

further It We that in color share want we drink at we're here going to want don't them. drive going something omnichannel really world, revenue an We're much and roughly Celsius. it. shipping XX have to they now, when Celsius channel. we're continue the to #X to So energy that, to focus it, they but -- deliver right a is than category. consumers want I that's through energy keep really about how

does growth think for continued within opportunity channel. it too, still the there I show that is Amazon

down within slowing necessarily that. because not spot it's So just we to a get suddenly certain

So opportunity look a as XXXX. we continued growth do as us I into that out see for

the Capital from comes line Sean question next Our Partners. of with McGowan Roth

ones quick here. of couple A

some the marketing good higher to than periods for of XX% some a sales rate first the 'XX? I in that On talked and little quarter. in we use past. is full a number you had year color good on And that of for expect the the about give think what Is

in I look We a the the with Jake we ] weekend believe QX a of activity, you weeks to we've QX fight actually prepared Super kicked or support. of my very we Paul our Bowl in number remarks. kicked MLS that off Puerto couple last think And another activations were you at and Rico interest [ we off this FX we down partnership. week ago, got QX and did We've the referred if that activations got successful.

the got mind we've in number that going. of rolling are So keep to QX really things a in

basis we at a we've year We look were year-to-date at basis, historically, As XX% range. the XX% XXXX. to on XX% in a full been

do. If data kind ahead ROI to to points wisely. We're continue we've opportunity spend got we're going are require everything an those money to going to John on I and to to. think I of it. invest stick our of invest we growth, the

see if So continue don't opportunity we we're if But it, foolishly. we'll we'll push growth, lever. growth, not to see we push going to there

plus that for you stores. cooler of Okay. Where Can do on could line. this double rapid basically, you pretty acceleration give mean, us, seeing I'm separate by additional in think end cooler the the for can think a and that's what the own Do goes? more you outlets XX% year? ACV. Essentials its And And of get some in generally, the I then line, that? SKUs you plan ACV that additional it or is to

line our with partner, new new we've well, PepsiCo. -- distribution That's a launched never

So learn. have I think we lot a to

lot think definitely been recepted are be a It's great. not can has existing There consumers. in XX-ounce That We there. We well cannibalizing hard. opportunity What's Essentials is incremental. Celsius by of really sales. working it

portfolio. and into new new are the converting we bringing in Celsius additional So consumers consumers

So excited. our that really consumers. not trading -- has It's existing not we're us

So the data. initial

When early. have at still we stores. only It's talking X it, in you you're best weeks weeks, certain look data at XX of like

that are So bit through out. really little into importantly, as our need a more move these to most underneath resets -- we and coming belt QX what see data bring we get get

I summer, line to a this going how portfolio. perform portfolio on our better have So this read the global think we'll is overall within Celsius Central

Yes. It's product. a great

if you yet. get and You haven't taste should it, out

line comes next of Our from Serotta question Morgan Stanley. the Eric with

Great.

step-up as more what ] a you give to through revenue channel. bit little the could in granularity drove So pet the [ foodservice

now I at think at XX.X%. running it XX%, been had it's

Pepsi, sure so those think if seeing Pepsi? ] makes and specific But foodservice go Jersey I'm could early channels that. through not clarify [ I traction maybe what through in you you are Dunkin' very are days, and still

particularly And do terms are and there? for or Vibes are adding, long you new in and new of sort limit question, the SKU you're sort here, SKUs Bull? legacy as the way Red performing of labor count flavors see core you're introducing you're as a Vibes by variety of flavors and these SKUs? still legacy from core then of and seeing that And Monster flavors, a what the the terms on then incrementality How what the broader in you

other I'll with one. the can ones. John -- foodservice the all the start have

So progress, then momentum, at you we've got start if I you good momentum. really our seeing look growing. foodservice. the we velocity thing volumes program, once with good launching the continued mean, foodservice, them, club across same that see at but as I and just is look We're

the We place college had fully also QX. in in program

in progress other summer in. So to We're about down college channels quarter within last foodservice out. to talked tends great is as empty the we also it the die season, a seeing the bit over we're that campus

other You variety you hospitals. food Dunkin', establishments. a Mike, mentioned there's mentioned, of There's also

our we're with seeing that channel, really and out. been we're momentum And significantly ongoing built that that. And continuing see to be just so helping distributor across grow has and really

there. we're me throw So continued to John. ones the But let great other doing and momentum, over

that. detail further Yes. just on a And

a also is Jarrod, and And seeing universities vending think step Keep I up going We're as vending, you talked results we're growth in college through you also vending. mentioned also seeing opportunity vending. momentum. in vending. the great and seeing big mind, there. about great the But and foodservice that expanded we've in

is several prior micro you at really of work lot I at-work at-work micro-market mean locations. good. those see opportunities opportunity on And prior. calls we talked a The markets, about

Eric. the with seeing scale. continuing you're you, So I And product to agree

from on and that overall shows you just think we have I go to opportunity the this opportunity. nontracked seeing XX%, channel growth XX% an basis

have We're that up our coming with really the line, we have to SKUs, team. variety some about excited and will you, that of a really success I earlier intergalactic call Space things a We're the talk to launched -- -- on K guys, the had, neat and that the at events Looking Odyssey [ comments Vibe new the the be Circle Cosmic, X going about to at Vibe out. rolling flavors on we theme of Space new the see. Space with excited mentioned we're Couch-Tard going line to Vibe able on at ]

revenue as mean, The look with Vibe to be and rater ultimately experiences or going our line another every our well, into great with the could I you product team this innovative our line that core Fizz come non-Fizz Blue tastes is line has I [ stream where And core, X-Eleven separate out ] really continues out phenomenal. and be flavors. the we non-carb at no there's great portfolio expands and in of extension Lemonade mean as expanding to an bring then to even the in flavors, opportunity flavors sip. well. QX at that core in wholly been launched

monitoring we're to need SKUs. SKU you the rationalization. do Obviously, So

year. slow-moving within internally call staying talk our, We'll is and our tail it, as we I portfolio, at new innovation our looking or see meetings. consumers cut that We'll something be each that's doing great. for So SKUs. which But innovation do we

So and Sparkling try phenomenal, Peach is out try great Eric, Raspberry our please new go it. Peach, it, flavor.

you'll as as think much we enjoy I do.

line with Stephens. Salera comes next Jim the Our of from question

and drill have I coolers displayed a Celsius to to wanted grocer little in prominently because branded very down local bit I I here. the was the cooler the a Ohio, see Cleveland, cash very on surprised been wrap of

you kind that on maybe buys to a coolers fridges? part question, the there? can have offer X so velocity, you the color uplift, can And you How just strategy to trial that repeat locations any just channel And placed? get those incremental as in branded about talk of want rates, do

to Yes. years trying Jim, it's more a over placement. big, big initiative had the get we've

been tracking the you've we've warm. over sold If years, historically been company the

build to loyalty actually and the of routine. a the that that and loyal would take had home lifestyle to And then chill we have and consumer. So it product Celsius drink goes the the really to around consumer daily

prior impulse category. of at purchase the in with is availability when where us, is the key and that energy convenience opportunity to the for want we channel, biggest go to the mentioning in to Cold we the the look success That order it purchases. the to the who kind want be is compete in question, success to category, to especially impulse we of key

XX,XXX So we cool. about placed have -- we

of in investing checkout be well, as coolers. checkout. We're gain right working more critical. We're placing coolers. Eye-level We talking to want additional to are is at We cores. more retailers on a variety

South that's opportunity. a big recent think I So in Florida. Most

checkout on at coolers look you to additional we're and gain we've publics, next the checkout gained coolers, If reset. looking

So see big do opportunity. We uplift. a that's

it's buy to here, kind you're the say register you If we internally and of saying cold, if it's cold, sold. the

thing watch it stacking and the is other fly. So high

and each store but to we a hard quite make on lift, in say the comments But lift. is around exact different levels, region is a displays. there Some lift is velocity channel definitely substantial the each because each

maybe Are lease portfolio. Okay. other central use actual all were the of show the local [ Like product based guys the on across cooler on changes Great. in coolers? in make one up you consistent could the there geography? innovations in lines And do that. channel, somebody ] follow-up on that Or a

Yes. great question. That's a

do a regional the So we on retailer, little progressions based we bit the flavors. seasonality do There cooler. exclusive and of that is on have size planograms based of work on a we

at talked Lemonade did like launch So -- X-Eleven, with new Fizz our K, Cosmic the we Circle about the vibe. we Free. I Raspberry did

is the coolers, accordance planogram. our flavors being our as followed partners planogram in will the national work potentially you we not do we on So that's PepsiCo and that work with and but in organization followed, have probably unique keep but something an to given see standard progressions to the to always coolers a overall tea,

So its should as Fizz the a have also planogram, our planogram Celsius a planogram Free well core and own have the should our be have line XX-ounce. Essentials Vibe as should

So that's kind our of how strategy. go-to-market

Fieldly have we like closing hand time the questions. all I'd to John back remarks. That's for it to for

Call. like thank you, our close for and Fourth Thank all our Celsius Earnings by on joining and thanking everyone, to Quarter you, XXXX thank employees. Doug, of us I'd today Holdings

we'll hands. our seeing together, with own Your fit several today. consumers dedication Relations to will continue enjoying will create We a helped of look details their provide which upcoming forward conferences to And their there. live you they can lifestyles so of in has be we're the Investor to on in pursue Celsius more success be to to Celsius energy Celsius corporate cold website. participating published many essential

healthy Thank live you for and fit. your interest Stay in Celsius.

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

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