Celsius (CELH) 6 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Jayel, and I will be your conference operator today. At this time, I would like to welcome everyone to the Celsius Holdings Third Quarter 2024 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Paul Wiseman, Senior Vice President of Investor Relations. sir. ahead, go Please

Toby thank webcast. joining John With Jarrod prepared Officer; and and take Staff. quarter following questions Fieldly, Holdings XXXX CEO; the and Financial Chief earnings me Langhans, Chief you morning, of Celsius We'll for remarks. third Chairman David, Good today are

later audio issued also Our ir.celsiusholdingsinc.com SEC's the and was with replay this materials will this today. An webcast of earnings accessible QX release available all be on site, morning, press on website, sec.gov. our

includes and the discussion any involve Celsius expectations statements, based and information. current Today's law. forward-looking disclaims forward-looking on uncertainties, except statements These Holdings by as duty update statements company's risks to beyond required many control.

our safe review SEC harbor which a those additional results the statements contain statements. our information, and our for from materially today's actual of contemplated result Please in in by may filings forward-looking risks quarterly differing that description factors with risk in and press release

We adjusted turn results and will over GAAP detailed present results earnings our to Non-GAAP in be and financial should accordance used our for John and GAAP. With release, reconciliations with not EBITDA EBITDA CEO, measures, substitute a their are measures QX in GAAP I'll margin basis. Fieldly. non-GAAP non-GAAP adjusted and reported on that, both a our like it

we continued expectations Paul. you, with growth demand consumer and revealing during quarter Good in revenue today, line Thank morning, was results everyone. third Celsius the its financial which broadly quarter. reported set

Once energy grew driver in Celsius September resilient which more significant at all of at unit increase Celsius' growth. sales XX% quarter of category, contributing retail growth same in a the Celsius the was on sales softness overcame of the XX overall than period. X% increased year-over-year category, ended again, X.X% in retail X.X%. the

September revenue quarter on distributor in attributed call. X% $XXX.X last Year-to-date, of Jarrod for million, an billion, year, optimization, revenue third was the inventory this discuss $X.XX greater XX from increase decrease to detail through last from Total a which was primarily year. will

consumers category; availability; increasing continues us seeing to be the being help our our rest energy consumption energy expanding largest The we're new of of focused the energy driver want will into that attracting we X initiatives and We vision I to key progress beyond: believe that the us of of supportive the the for year product reiterate across on sell-through leading are brand. and becoming the frequency. data of making drink the growth drivers these each are we pursue category.

details about how more me thinking share we're each. on Let

to energy. premium bring in with taking consumers, nationwide we continues due the and demand. our Cherry Sparkling line, energy First, around are and continuing such drink new Cola, strong which new Celsius better-for-you, innovation and to on-the-go great-tasting flavors innovative that through deliver like Vibe Watermelon, consumers RTDs our to consumer Lemonade into powders resonate as marketing category we're

and line category convenience excitement Celsius flavors, alongside the show, announced Ice, trial new Slush Watermelon and high. previewed XXXX recently Two at keeping NACS, trade Vibe core and store Grape ESSENTIALS innovation our consumer

brand Celsius through category the and that marketing. believe energy consumers new association function our We outperform continues brings into drink Live taste, on that the lifestyle our Fit to with

aisles, on product these beneficiary in space recent will we strong beverage a of shelf Celsius of in Second, the terms expanding based with continue energy gain gains. availability, and to industry expect being surveys, coolers

last of Convenience from in XX MULO+ last positive with time with our basis this at customer conversations an in Domestically, been This market X NACS. validates we to weeks has points ending XX.X%, last X, share the month October share Celsius rising resilient year. had increase

us going resources on reaccelerating our aligned should featuring our tailwinds priority incentive that believe program We with forward. periods Pepsi for and share are focused We provide growth. additional

channel, to Lodging our respectively, channels gaming were was that results workplace, PepsiCo expanding the America points of in the other foodservice North Celsius' and to quarter strong restaurant XX%, XX% sales distribution to up and to recreational, and compared last Approximately Turning sales. lodging of XX.X% year. with availability. total are in restaurant,

Celsius to XX-week million, to building to Stackline's according consumers making in and be year great whenever Amazon share ending to our E-com opportunity continues million X, with read for brand Celsius us the from awareness it. up sales $XX.X increased prior on product year-over-year want Amazon XX% period. XX.X% QX ended XXXX. they October to $XX and accessible a a last wherever

XX%. XXXX in the increased third Costco quarter at Sales of

sales were the in $XX.X due The of promotions to sales total X% million decreased from in negatively Sam's and However, quarter affected third for Club, prior channel year ago period. loading timing XXXX the million to the $XX.X period. year to BJ's innovation club

is expansion we In Zealand. New just Our in Australia, broader North America. than October, launched

aspirational growth quickserve increasing third our is flavors our incremental consumption Celsius grow presence convenience Jersey like like time to our expanded meal restaurants drink driver Our consumption Live refreshing lifestyle. through Fit with leading and Celsius occasions stores consumption in Mikes. energy occasions continues with partnerships in frequency.

behind We're but our operations, our organizational the scaling developing supporting technology advancing growth in our excellence, people. drivers brand, also and by investing

way will to to give acquired near Beverages, term. achieved a leading innovation chain, supply we drink vision brand the long investing in greater financial our new that co-packer, integration growth long-term become the this another addition benefits and control in like we our in capital-efficient is acquisition believe week, United the that in is a believe Last energy to be us We we and long-term driver are States. vertical Big co-packer of which Celsius capabilities, intended

as to new supply and expand chain our established new intended global we and marketing excellence across in center of innovation, Ireland, We've the forward drive global global also U.S. further a procurement, markets. recently into

team mobile further well begun as vehicle that new relationship using a have and management. Our field efficient key optimizes selling routes AI-assisted sales accounts as technology tools for selling

improve our to in costs. freight efficiencies new orbit model technologies our reduce investing in We are and also laying

present Board Johnson additions Israel strong and PepsiCo. at already prior Lee, Jim Board then leadership thank roles new Johnson of we global We Importantly, departed who of for our & experience we goods, Melotte best in Hans consumer These Target. Directors, Starbucks, conjunction welcomed new and from CFO service, move in Kontorovsky. bring extended professionals wish a X and Jim to him his Pepsi our luck and his replaces his in with role. Israel to

pathway do, Our is believe, us. customers with we winning a Celsius continue as growth of long a to brand ahead that

are long-term technology and We focus our are to across growth energize strategies more These underpinned growth organizational excellence customers scale. people, X by in with drivers for our often. places more sustainable investing on

the Financial Chief quarter Langhans, Jarrod discuss turn I'll call over that, results. to our to With Jarrod? Officer, third our

Thank you, John.

despite quarter marketing of our our we third driving our a Celsius revenue Big the invest and in a on the portion brand generated of strength of to stay net this significant we positive our integration hand and normal, sales but the on acquisition position focused While long-term efforts, Beverages, put of income, headwind, as cash our financial to growth. vertical invest all we and in with operations. demonstrating toward was anything continue Moreover,

to between was approximately the that distributor inventory in by due sell-through our million. million down revenue headwinds $XXX Promotional This due selling last quarter, from $XXX primarily around and revenue retail. year, QX retail revenue to impacting largest the existed XX% decreased sales allowances $XXX imbalance distributor, increased optimization to from by increased our created million, at

incentives network previously priority further aligns was This incentive does margin. periods the further Additionally, fully its in program our unit the macroeconomic our through Revenue with distributor by quarter. largest financial ramped our and announced program and other of up but and reduced velocity measures, softer impacted franchisees conditions. third impact

XX, for revenue the approximately from million, optimization. of prior $XXX million American period, inventory driven the months XXXX, $XXX previously decrease XX% ended a North the year primarily was mentioned X by September in

QX in International the Year-to-date, last to was revenue same September approximately from revenue an to X% billion, the period XX% year increase total year. grew of XXXX, prior XXXX compared period. $XX.X XX, through $X.XX million

million, the profit year the margins of were in in period. to to XX% quarter in quarter the third third year Gross revenues profit from prior the $XXX for Gross decreased prior million XX.X% $XXX period. compared down XX%

incentive full our quarter the distributor. effects optimization largest These the are with of inventory our and due aforementioned to in program implementation

costs margin However, were offset reduced freight partially outbound the by factors on savings purchase these and X from pressures materials. of

was or of full Year-to-date indicative $XXX.X September our revenue, XXXX, XX, of the more year to increase operations and $XXX.X prior was gross million of XX%, an profit period. XX.X% in through year or XX.X% compared million

revenue expenses marketing percentage and as quarter XX.X% were and of for the XX.X% a year-to-date. Sales third

approximately $XXX expenditures place largest the and with While less in were percentage sales. optimization our in marketing of they were higher took a the resulted much expectations, distributor, which in forecasted our by line revenue to due as that million sales

thoughtful our With a to disruption without manner invest creating ongoing that our brand and said, to continue investments. we campaign support and in

expenses administrative $XX.X and from with to general line revenue, XXXX up rose expenses of of in XX% year. were G&A through X% expectations. Year-to-date QX X% QX, last sales, million, XX% total representing

QX margin last adjusted $XXX.X approximately to EBITDA the from decreased for million. EBITDA year, adjusted with XX% million Non-GAAP million $X.X $XXX.X of year-to-date totaling XX.X%,

last $X.X $XXX year are year approximately we positive of maintained cash full income quarter's million, million net the cash we flow. balance from $XXX million, million. QX and Despite XX% above $XX.X with decreased net a year-to-date down to pressures, generating income operating

questions. for you prepared remarks. our open lines the may concludes This Operator, now

first Instructions] the Your of comes Stephens. question from Salera [Operator Jim of line

wanted XXXX close move maybe and into the I XXXX. cadence out on as to drill we down

new assume Just XQ see month-on-month that have then guys of you XXXX? in the the the sequentially data channel, scan the trends us improved is into launches, we we with for go through promotional increased move as some correct have it the should to combination and the of in flavor

There lot question. variety promotional for for activities new category. promotional brands as the category a variety planned a of as within a Yes. Thanks, is Jim, coming we other The that's the out is well. from do know. of QX We innovation highly of have

We're watching weekly, velocity on quarterly a basis. monthly,

a of expanding have and occasions, the place as with on great really expanding in for into availability. well as where increasing increasing to new drivers half our of usage we're focusing We category, XXXX, lot back occasions the heading plans growth

things are monitoring. we're those So

a lot of have We place. plans in

the program up country teams a Just national And we'll reach coming have Tyson. sponsor, with Jake further are a Paul, the some across get the We're few retail. driving we big focused be impressions. to to and able Mike in title next so on weeks,

quick If we Great. one better that has pressure category categories maybe in I if of then sneak the about retail. still the seen, obviously, Okay. follow-up. And across can think a the

you would into next go want on year. energy accelerate really that out thoughts drink of and the growth as to see category any we kind drive Just consumer would growth what of category

Yes.

saw a look on I of retailers today, reporting that was convenience. at in with our when We major we're lot traffic quarter reduced think you the traffic. about it troubled talk third

We good it. need occasions come tailwind and back. better-for-you is our at broad But the and the back. look a lot behind a lifestyle energy news has traffic is portfolio, this position to fitness performance you need We to that come of Celsius when

down. exciting greater sit think I the The category quarter, what's the saw is is slowing about today better-for-you XX% is now of And is the really than in time as sugar-free. here first us category we -- for greater of not for XX% the we

sugar-free movement, steam. to it build the So continues

an have to need We macroeconomic amazing We improve. sugar-free trends portfolio.

to over actually the quarter. the from saw we We lows negative in growth category last that and additional the several saw the in improve. expect growth third some weeks We the

taste well which we're So we will. the with and we're gets back, category our it feel refreshing our when confident function, fitness our positioned profile position,

excited you availability we're increase to well, the category about. And has which as in been a in As driver LRB. growth really going said, we're great

the of question from next Kaumil line of Your comes Jefferies. Gajrawala

couple guess, I of things. a

that some incentive maybe you're give behind The you're positive where specific more on why you first about prepared Pepsi we remarks in is it. drive acceleration the and what's details your category structure with that to and Can now? mention that from new should that us are

focus additional program other We operating we was further that XXXX getting Yes. meeting attended. Vegas implemented implemented priority really finished team XXXX just off NACS and incentive -- and the alignment group members program our in their look Las our leadership last is When the team at of annual that well on -- into you as plan variety as month coming periods. it, with in a further

cohesive plans. we're getting XXXX getting collaboration, we have alignment we're And like further great to drive -- a Just truly to -- feel going of our it's cross-functional we're on as further more approach aligned critical the is more this trial. brand category, so availability, that placements and additional on consumers Celsius purchase, which getting and more expanding path getting to hands a in building and disrupting of

on I you've the Do we move them surprises. all they at think like place? the are Presumably, with be. But from we'd want no right guess, for second they chatted inventories more place hope is, And they're just the if know with and here? Is I question consumption done? to in to

Yes. the to color further over between it I'll turn provide watching sell-out. We're some correlation sell-in Jarrod and on to that.

Yes.

got tighter from the a of correlation fourth basis of into distributors' inventory a quarter. sell-in largest our we've seeing handful and weekly visibility QX. We're when retail into between definitely So weeks to depletions on a warehouses comparing the

It's not fully yet. matched

discussions the through the At seeing a having. retailers, the at rate, the ends we're current and sell-in but we're in is alignment slight there should from this the with So slight it's versus before sell-through based sell-in and the on time. sell disconnect see QX trends of we point very

to So see in drivers our some With and said, we in impacts be any November QX. working minimize diligently the teams process. pressure December key potential in together could this are that will quarter. definitely

the stand of our up So where million pressure. the some potentially benefit we things into depending today. see an kind all to or way positive upon as $XX visibility see how maybe we today, That's impact could of we year, end

can So range kind offer what that's perspective. we of seeing we're from that the and

that Okay. what another XQ? Is million you hear just... that right, I Did for $XX

how -- I around of kind from see depending said all to the see positive we up from finish year. could million of way a the of off bit pressure, it upon $XX benefit actually anywhere we

to and December need out. November see turn how We Yes.

Your next of from Stifel. the Mark question Astrachan comes line of

last demand way would million of assume of obviously, from to that's asking best this range here positive, be the on sitting keeps look think question I to like, the Just question comment. about would I our end scanner this the potentially over headwind and quickly look if guess, we're for that data But following at the -- desks, everybody slightly over trying your $XX again. all to whatever right?

mid-single be So if that got performance where something they inventory helpful. digits, or couple how your are sales it restocking current around trends guess, I would to to to low questions. I've perspective? And relative a somewhere maybe are benchmark growing does from an of now, other destocking look then

Yes. perspective, It's a good Mark.

a way, things pick perspective. If if then expect I'd -- you then to we say better from other So the to opportunity things see up, if I turn benefit start of we that bit a have would see more kind see we little pressure.

we're So a you to kind anything But of if we stay for where is tracking worse we a probably of -- for worse A little little little is a are, not better us. us. kind substantial. better have little

market Yes. And helpful. on then share. That's

And peak from points has do about there. X.X think It gone? Celsius to May. that do think, suppose, down, regain So you the what think X, I question do know, I still consumer don't in where used you John, was that the said in think is, remarks. prepared consumer? you word can in is that hanging guess But resilience, I share, I think I it's if the the you

Yes.

when through it peak of convenience challenges. think shelf been that That into We've expanded channel. May, going there's through the look us opportunity lot gains. I biggest for was within a you that, at since the space of

there with And some challenges we foot traffic. did see

in getting shopper trip, from potentially less from that less We maybe one some is that one taking Circana, data are the we're know we occasion. of -- our that

bringing the think occasions a back and to as returns target bring that. growth consumption consumers and rate category gets expanding big we confidence consumers opportunity in really So there's increased on new those to back and in

brands. is the some that's a been shopper other new of came gotten of the trial. there. lot We are of We've of one expanded one we that players on movement is lot in of from have a The in product that better-for-you the there. there's innovation a come -- great flavors another purchased Sugar-free portfolio. think largest Maybe of that

feel feel lot Coming around feedback resets a some there's space. to out we XXXX. for shelf we new retailers that's innovation expanding coming we many out customers. excitement the But for And heard And confident of in portfolio. confident our energy additional We category, of positive on in the many XXXX. of NACS, of our talked from

see great to we're we'll and confident So that some feel expand But planned we've retailer we marketing availability. 'XX. going up. into space ends how got further And programs

And We're and And further question, alignment that day. each collaborating and really getting every prior with getting this every further year I was looking is of talking the every about, each relationship, answering to month. Pepsi, leverage into the week, that. the we're third we're alignment and better

follow up to that. on just And it. Got

sounds it would mass, C-stores like Amazon, Costco. way to in the weaker it saying, So it? in your Is you're be about that share, is than think

And a as drug, if on Yes. -- go our better food, historically it's in share that's as historically and as has been, been percentage even you back mass Amazon.

is So opportunity that's close to big the -- the gap.

a of to gap. well need placements. disrupt good got players. to to variety drive close as purchase. path continue penetration. better We international to to as need to need regional just get We share We household the We that We need retailer in

And we consumer. positioned the sugar-free to consumer feel We to growth. gets capture we're back the that better-for-you there, the consumer, is that lifestyle know the well category fitness this when consumer And there. is

the Grom of next comes UBS. of line from Your question Peter

update about we through So dollar versus benefit maybe similar the inventory, the the us you the as maybe on quarter, move assumption I something a guess, XQ? Is this I to what ask million wanted saw in $XX to headwind. we but for slight just plan to

a have in had in if to $XX that guess, worse. will, negative September what's trying million things similar where I'm similar -- came far what just of don't I we assumption? make versus And underpinning that of you sure we kind then to headwind, update,

better you just summer? times saw But today the inventory throughout several guess, the on we spring mentioned alignment dynamic how that, compare I and building your visibility maybe would in the you versus this what call. on And

Yes.

I think good and working -- closer have closer we visibility, together. we've and been

I some largest and on some very couple -- think weeks optimization very in some efficient that of And place up was actually caught call got a their on I of good QX that took ago. commented distributor what our optimization. the think

a with did they great So that. job

got of little got analysis in based of the QX. at that looking the We of we and the build got we're better, worse, kind if we're little -- in things kind just kind if caught to following. things kind a of that's In trends, trends range and up trying QX, on data an a we're provided

And our you best from that's so guys perspective. for estimate that

In terms more is any of the more where than, really QX does say, took where QX, versus I a of optimization QX optimization. the would significant product was place. go category of QX so kind

Okay.

sales So this as that growth million? scanner if underlying fair? in we out is think kind the sort $XX North conservative, XQ some Is if back I that's way were you helpful, -- stand today, we're call Jarrod. see the data, and of low digits take we mid-single what America to of here guess, to assumptions, is being best about it,

Yes.

Okay. market one building And the then on quick follow-up, question just maybe on share.

unpacked guess, a But I promotions, of plans similar things. your You kind of peers are here, doing innovations. some lot

you were over at today kind what a the to year-over-year versus actually I'd hold we're you're course where you start going shares, sequential to think of kind of if point So if look then at curious different you that, the summer. here, decline. within be And doing what of the see market maybe is you

over about you we weeks tracked next looking be performance think the several out here? think for the that should something braced as Is we

lot a there think from there's There's sentiment. changes happening year. consumer things to of this to consumers, variety Peter, of innovation, shopping pattern I variables Yes. a from within

different a program, university to our to activating strategies have tactics Gen and better-for-you, drive Z our continue new variety the in further movement. We of category consumption, place college leveraging sugar-free

further with we're really to that, that's purchase. to that path cooler Further, alignment Increasing placements, and is something expand really availability working on. Pepsi collaboration

talked in You about look opportunities of occasions, at lot prepared a that foodservice, ahead. some remarks, there's increased we consumptions, the great that

largest mentioned, Jake sporting consumer just history, national some boxing supposedly sporting actually. -- to the event Like I Netflix Paul-Tyson event reach. about is Talk live the in

of up will It weeks. drive So reach X that household eyeballs, be lot penetration. coming lot the further of get in next a will a

want then drink And in, be to great innovation we've refreshing. coming some energy the aligning that We further out got refreshing most flavor there.

great we efforts, new maximize and have to build strategy consumers continue to we continue that. as So of a lot target upon evolve,

the share what we're continue evolve focused hard as are goes, So and executing continue these to we each getting drive that's better and increased evolving. increased learning, teams day share on, and and to working And to velocity.

comes the line from next of BNP of Your Kevin question Paribas. Grundy

A couple me. of questions for

guidance, lot picking Just term? near a consideration of the of kind both out of zooming up around on Has line term questions of there the around but introducing kind a bit, quarter. and been long formal

context, outlier, I ask historically, agree issued everyone much guidance, number to they're the We some in one, pretty can whereas Monster. an number one. pointed And of kind staples you that sort of in else

lot a say a you even I it's like two, would guys of Number for goodness, heck lost it Because narrow not more think -- now think I outcomes range moment. U.S. I you months X, just X then a would probably know, my the lastly, ago. the and was, on of in than is

in desire kind of sort both marketplace credibility of where around think more the term,and long near a strong term. we're is greater visibility, for results I and going, there the

feedback your would thoughts I a there, have So follow-up. your And be then appreciated. there

-- variables the Kevin, our especially outcome, Yes. it's over our last models and lot -- years. of a several in there's

not providing can a It's we the done. haven't there's time, lot but we So But we something providing not that guidance, reevaluate the in At forward is at can it's forward this the at not future. guidance. -- play. time, of company this is dynamics something company

international unrelatedly, Follow-up, expansion. Okay.

of massive the was think past, U.S., for sort or company today. And even not that when a somewhat into the up -- think opportunity of there's share was more today, of right, been and in itself sort a measured and matter, the finds I that's just I there's measured in that the this So more strictly approach. the thinking understandably

thought, much aware than today? business sound is a school you to mix Monster. a international aggressively will, there your company is expand percent So of relative of where as more the of if international is You're to well

in marked U.S. value the deceleration can the it potential seems really where like been to trigger what company business. in offset So that's has pretty a a lean

it'd great be there. thoughts your get to So

And then right relatedly, do team -- you sort drive the the to internationally of you think have right in in place leadership place expansion? that

Kevin, we've year, several we -- Yes. just Suntory further expansions this with the for announced partnering launched U.K., Ireland.

We also have Australia, New Zealand and France.

have coming a new are lot which we the So of on. markets working on teams board,

agree We you. with

within I think there's international of a lot expansion. opportunities

being are sequencing We of timing of cognizant and rollout expectations. very that the tempered on on

well. we and really -- turn scale, we can things grow can out As continue to

So wellness volume our in the going see confident the We're global we markets. same international health trends. higher after expansion. We U.S. are in drink and energy trends feel

have alignment We great in in Australia, U.K. distributors from feedback We're partners. great Zealand getting Tesco and with and New retailers and X-Eleven

going not the great we're time. as acceptance things continue works, -- this and of the at a forward. consumer to gains and a lot loyal expectations we're there's as But to in brand setting so And acceptance, move roll fast point in consumer

And or scale. to stand up from in we that, in are of perspective us terms Kevin, or expand at headcount, quicker that jump people just better a to will looking to allow global operations on

chain So we where cetera. perspective, innovation, on marketing, center kind standing mention a remarks prepared did supply up of we from are et of our that excellence a

from that moving the perspective. will optionality around quicker us that So allow

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

see and to just on competitively. wanted a to maybe give can and also Just us and for And sense you of of space updates set maybe back the come you resets XXXX already shelf how it. positioning kind that's curious much get how the what

you how maybe for KDP. of all competition this beyond? Does round better with Ghost set a contrast see that yourself against how if Just is bit change to for shelf love forces maybe anything understand if joining resets, little up. space, not about it's and maybe Compare and the that

questions. Michael, Yes. No, great

said, of a great resets, feedback coming out the of the regards positive I NACS, I to was think in around there like brand. lot

to advantage confident secondary better hopefully space, take impulse of we're increase those gain well, -- and to cold that be able shelf So we'll additional as gain placements and availability placements purchases.

the at by as awards our which valuable around a retailers very months So as well Supplier Circle and variety and brand the country, of consumers, alignment. well We're is buyers. in the last Year just retailers well. major won incremental very including We bringing is received over Casey's of X-Eleven for our XX K the as

So being partners. we're our by recognized retail

In the most great the recent for KDP. acquisition great regards KDP to and brands, with Ghost, of opportunities transaction

Just better further energy, is lifestyle, within lifestyle performance for opportunities fitness that seeing the is which everyone reinforces the you, the today. and of future

as I opportunity. disruption, always there's where So there's say,

of there's think might whenever eye. We're distribution a business, that's I keeping behalf There So opportunities. on us close transitions be on any teams. some between the in networks. But there's disruption

each day. will, and on opportunities great and brands and And advantage, there's be the will think teams lookout. the out after it. go But hard there. where we'll Ghost working every to We're our take we CX are So I

balance the helpful. And That's on just sheet. a followup

a acquisition, the You've there's pile to still put a little Big big the work there. for Beverages cash but bit of

-- expect on thinking on on being any touched I integrated. to that to vertically the strategic you just more and/or, thoughts of deploy come? how guess, Maybe of Should some we that

Yes.

I optimize model. helps at with driving really -- flexibility, integration We're further and focused an orbit opportunities. gaining our have balance you really recent leverage Beverages take can on additional innovation of sheet, for extremely do Vertical and us vertical we very LTOs, most We Big us advantage think look sheet. our healthy balance when allows with scale.

this forward. is major step So a

gain leverage, we'll able that 'XX, be we're look partnership. to excited further and we As into about

cash us have availability. The on a investment. ROI good So to it's be and balance allows opportunistic our sheet

feel we as we So good in a stand. position currently we're

necessarily to opportunistic, integration. vertical So not but further committed

depends. Just

it predominantly so this us It pick things. to innovation Celsius, was our of and those into Yes. up and was it system really and plant was it LTOs, bring -- that was a easy around kind give flexibility that

to But the desire a co-packer. become have we don't

to opportunity long-term at a not something the the from a model we've across and look with it's So the co-packers We pick the partnerships still U.S. perspective. in believe created we great It plant up. orbit was

But that be integration, move bit co-packer them. leverage well, something well vertical around going a We was to R&D think our model. to the was in as opportunity the innovation a to optionality are to asset-light. that This this we it business like and have to instance, and and little suddenly little It's we already orbit so a using something were -- wasn't we like worth LTOs the it. we definitely

Serotta the Morgan Eric line your comes of And question Stanley. of from last

Two Great. quick questions.

the kind off been since be are First, is a push early, sugar-free on for the Red and like, evolving you seems It going after summer. big Bull this but year? upcoming to sugar-free. thinking have it's strong They of having and a the space. winter offensive start. clearly, seems how fall playbook execution to about flavor And realizing next Monster Winter seasonal, the

So how year, to evolve or drill are whether things? execution next the it's playbook you looking strategy deep other any

if magnitude? that the come so, November price -- anything what's price But second, increase believe Have you a to trade yet? for surprised it And pricing, And increase didn't was X. Monster's up time communicated line was and already. list on I the set guys

identified question well in in That's All in first some the with Bull the right, Red sugar-free. the as that's place Eric. further in around innovation the and leaning regards further you Monster with now as movement category really execution as Excellent, sugar-free in leaning Eric. energy taking

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That conference and concludes session. now John turn for our the Chairman remarks. closing I Q&A back over Fieldly, will CEO, to

webcast on joined everyone us for with consumer. are Celsius Thank fitness-minded on who the tasting, continues beverages you, that trend morning. refreshing operator. great category today's energy Thank grow you this our to to our

now U.S. we to Our as in us here brand in guide continue will grow places X the more into drivers, and Celsius future more growth and the world. the often, the more consumers around

We next will quarter soon. share a conferences full in attending of that upcoming the we'll schedule be

Celsius family on mission to Beverages. are Thank our our members our all of who joining you the of you investors, Big to partners the including so drink change of us employees, newest our from supportive energy all to category. Celsius Thank customers,

great it and live Grab fit. Make refreshing a day. a Celsius

conference call. today's This concludes

may now You disconnect.