Drink up: Better-for-you beverages fill tall order

Jones Soda is entering the functional beverage category with Pop Jones, its all-natural prebiotic drink. The offering comes in five flavors — Cucumber Watermelon, Pineapple Ginger, Orange & Cream, Strawberry Passionfruit and Mixed Berry & Kiwi — with 30 calories per 12-ounce can. Pop Jones, which debuts next month, is shelf-stable.

Pop Jones is sweetened with real fruit juice, pure cane sugar and natural stevia leaf extract. Jones estimated it contains half the added sugar of some functional brands and one-twentieth of a standard soda, while also having “a generous dose of fiber and immune support.”

As people look to curtail their sugar intake, and increase their consumption of better-for-you products and items that contain functional ingredients, popular so-called healthier sodas have thrived. As a whole, the functional beverage market is forecast to reach $62 billion in 2027 from $50 billion in 2022.

As one-time upstarts such as Poppi and Olipop have evolved into household staples seemingly overnight with their better-for-you soft drinks, existing beverages have noticed and responded with their own functional drinks to attract consumers looking for a healthier soda alternative.

Kombucha maker Health-Ade announced in February that it will launch a prebiotic soda called SunSip. Juice and functional beverage producer Suja Life plans to relaunch soda brand Slice in 2025 as a better-for-you offering with gut health benefits. Now, Jones, which has stood out with unique flavors that Big Soda wouldn’t touch, including Blue Bubblegum, Pineapple Cream and Strawberry Lime, is the latest to enter the functional space.

"Functional beverages with cleaner ingredients and lower sugar content have created a new modern soda category that meets rising consumer demand for tastier and healthier food and beverage choices," David Knight, CEO of Jones Soda, said in a statement. "With our nearly three decades of flavor innovation and broad brand recognition, Pop Jones is poised to become a major player in a space that is redefining soda."

Jones’ small size and late entrance to the game versus other already entrenched brands likely means it's going to be hard to grab meaningful market share despite the company’s upbeat tone. Still, as consumers look for more in the products they eat and drink and increasingly distance themselves from sugar, Jones had little choice but to launch a functional soda or watch consumers leave its brand in favor of one that already has. 

Jones has been aggressively moving its brand into other trendy categories. It has launched a beverage with added caffeine, a hard craft soda combining its pure cane sugar soda flavors with hard ciders and a zero sugar cola. It’s also entered the cannabis segment with its Mary Jones brand in select markets.

Poppi is currently facing  a class action lawsuit for  promising gut claims. The company advertises their drinks as “gut healthy”  — a slogan they’ve since removed from their site.

Top Class Actions reports that the plaintiff claims Poppi drinks are falsely advertised as good for consumers’ gut health, when really they contain minimal prebiotics and too much sugar. Poppi did not respond to Food Dive’s request for comment in time for publication, but in earlier coverage, a spokesperson said the company “stands behind our products and that it believes the lawsuit is baseless, and we will vigorously defend against these allegations.”

The popular soft drink’s sales passed the $100 million mark thanks, in part, to distribution at more than 120 retailers, and its success reflects a rising interest among consumers who want to integrate holistic health into their diets through food and beverage. 

The functional beverage market is valued at over $13 billion, data provider SPINS shared with Food Dive, while kombucha and wellness shot markets are each valued at roughly 1.3 billion. But the recent lawsuit has consumers and companies asking what exactly makes a product “gut healthy” and when is it appropriate to label a product with such buzz words? Turns out, it’s complicated.

Defining “gut-healthy”

The U.S. Food and Drug Administration (FDA) requires clear labeling, and avoiding misleading claims for supplement-based products.

Dr. Kelly Swanson, Director of the Division of Nutritional Sciences at the University of Illinois, authored a trial that found 7.5 grams of agave inulin, a popular ingredient in these types of sodas and waters, might soften stools or increase the number of bowel movements a person has each week. 

Yet, many of these drinks, including Poppi, have less than that, clocking in at around 2 grams. This study and others are becoming important standards in this trial, and the regulation of prebiotic drinks at large. But, like with many health-related concerns, Swanson told Food Dive that it’s not one-size-fits-all solution.

“It depends on the prebiotic in question and the person consuming the food/beverage — their age, body weight, health status, diet, gut microbiota populations, etc. — but most people would require at least 5 grams a day to notice a response. Because the effects/responses will gradually occur with increasing dosages, I am not sure what dose is needed in a product in order to make the regulatory claim [such as] ‘support gut health.’”   

Building consumer trust

Brands hoping to succeed in the prebiotic beverage market should follow guidelines to establish credibility with consumers, according to Ben Goodwin, co-founder, CEO and formulator of OLIPOP. 

“OLIPOP was founded on a commitment to setting a high standard in functional soda. Each 12 oz can meets the FDA's requirements for an excellent source of fiber, and contains three sources of fiber: cassava root, Jerusalem artichoke and chicory root.” 

Goodwin added that the company has completed third-party in-vitro research at Purdue University which indicates that their prebiotic fiber blend benefits multiple gut health-related measures. 

“We are also the first beverage company to earn the NutraStrong Prebiotic-Verified Product Certification, which independently validates the quantity and potency of prebiotics, as well as prebiotic efficacy and stability data.”

Dr. Jenelle Kim, board-certified in Herbology, Oriental Medicine, and Acupuncture from San Diego recommended in an interview with Food Dive that brands prioritize transparency in labeling, using ingredients backed by scientific research, engaging in third-party testing, providing consumers with comprehensive information and adhering to regulations.  

Monetizing “healthy” sodas, carefully

“Consumers are savvier than ever and are looking for convenience, so an on-the-go beverage that tastes good and is healthy in a category they understand — soda — makes sense. It meets the consumer where they are,” said Richard Laver, CEO and founder of Lucky Beverage and Kate Farms in Santa Barbara, Calif. 

“What better place to innovate than soda?  Millions of Americans in schools and lunch spots reach for the cooler, and if they can grab a cleaner soda with enough probiotics, then it just seems practical and tastier.” But, he said, companies shouldn’t bank on a single nutritional feature. “In the food & beverage companies I started, I never leaned into a hero or one individual ingredient. The collection of my ingredients was/is the secret sauce.”

“Healthy” soda companies, our experts agree, should emphasize the soda replacement aspect rather than making true medical claims

When Unilever bought electrolyte-infused beverage mix maker Liquid I.V. for an undisclosed amount in 2020, it could have amounted to a pandemic fad, as consumers sought out food and beverage items with added health benefits. But the hydration drinks category has since proven steadily lucrative — with major companies eager to capture the many thirsty consumers looking for new beverage alternatives.

The craze originated in the mid-2010’s with the success of Pedialyte, an electrolyte-infused beverage used to treat dehydration in infants. Previously only a staple of the baby food aisle, it gained popularity in the 2010’s among college students and young consumers looking for a hangover cure. The brand appeared in tents at the Coachella Music Festival in 2018 and influencers began promoting the drink more prominently.

Erwin Henriquez, a beverage industry expert from Euromonitor International, said this was an unintended consequence for a beverage that cured dehydration.

“It wasn’t necessarily a consumption occasion that Pedialyte was actually pursuing, it was just young people figuring out that they could use the drink in a different way,” Henriquez said.

In recent years, many of the behemoths in the beverage space, along with smaller brands, have acquired or developed hydration-focused beverage brands to differentiate themselves.

PepsiCo officially launched Gatorade Water in 2024, as the sports drink staple seeks to keep the brand relevant amid a changing environment. Sports drink BodyArmor — purchased for $5.6 billion by Coca-Cola in 2021, its largest acquisition to date — entered the category in 2023 with BodyArmor Flash I.V., available in bottles and in a powder format which it launched last fall. Keurig Dr Pepper reached an agreement last October to sell and distribute Electrolit, available in a variety of flavors at convenience stores alongside energy drinks. And Waterdrop sells electrolyte-infused cubes that create “microdrinks” when added to water.

The electrolyte drinks market is projected to be worth nearly $59 billion by 2032, growing at a compound annual growth rate of 5.9%, according to Precedence Research.

 

Are the drinks better-for-you?

For experts in the beverage industry, the rapid growth marks a significant change, particularly in the beverage mix category which had been in decline with brands like Crystal Light falling in popularity with consumers seeking trendier offerings.

“I’ve been getting emails from companies all around the world asking, ‘Why are powder mixes and concentrate growing so fast?’ It had been dying off in the last decade because consumers thought of them as highly sugary and not natural products,” Henriquez said. “Here I think consumers feel like they’re actually making a choice to add something to their drink that makes it better for them, and that’s a powerful connection that wasn’t there before in sweet, fruity concentrate mixes.”

But while the need for hydration is addressed with the products, their nutritional attributes and functionality may be hard to achieve at the same time.

Liquid I.V., known for its powder packets that are poured and stirred into water, launched a zero-sugar line in 2023, containing an amino acid allulose blend to sweeten the drinks, according to the brand. Henriquez said the offerings without sugar do not contain as many electrolytes as its offerings with sugar, which could create a conundrum for brands looking to also maintain a low or flat sugar count.

Henriquez said he wouldn’t be surprised if leading energy drink brands begin selling powdered concentrate versions of their drinks to capitalize on the shift toward hydration.

“You can see companies starting to merge the concept of hydration and energy, with companies like Celsius saying that it’s an energy drink but also a sports drink with amino acids and all this other stuff that’s adjacent to hydration,” Henriquez said.

Holistic medicine doctor Giulietta Octavio created her beverage brand after observing the harmful habits of some of her patients during the coronavirus pandemic. 

“When everyone was stuck at home, a lot of my patients were very anxious and just kind of stuck and would drink as self medication, but it would then make them feel awful,” said Dr. Octavio in an interview with Food Dive at the Summer Fancy Foods in New York City. “That was when I saw a real need for a product like this.”

She created Ceybon AF which started as a product that was similar to bitters in an alcoholic cocktail. Its elixir line is a concentrate of different herbs and mushrooms. 

“I would mail the small bottles to my clients as a gift to help them drink less alcohol, I would just have them mix it with a little soda water as a replacement for their nightly cocktail,” said Octavio, “what I didn't realize was how beneficial it would be for them. So not only were they getting the benefit of not drinking alcohol, but they were getting all the benefits of the mushrooms, the Adaptogens, and their immune boosting and mood boosting properties. They were like ‘I actually feel better than ever and I lost 10 pounds and I feel like I have a sense of hope again,’ and that’s a big deal.” 

It was by the end of 2020 that Octoavio recalled getting requests from her clients for more of the elixir to send to family and friends that she realized she was meeting a real need and doing something good. 

Though the bitters were a success, “people were like, ‘I just want a drink, can you make me one?’ and that’s when we developed the full-sized ready to drink bottles,” said Octavio. 

Now, Ceybon AF — which the company said translates to ‘it’s good’ in Chinese medicine — includes a full product line of Elixirs and alcohol-free Mushroom Wellness Cocktails, in three different varieties: Bright AF, Chill AF and Happy AF. 

The company produces its products at a vineyard in Napa and uses all of the same equipment a wine company would. This is no accident. 

Octavio wanted the products to feel like a real adult beverage, something luxurious and rich. 

“An alcoholic beverage, to me, has three components,” she said, “It has a viscosity, that sort of mouth burn, and then it has a bitterness and we use all different botanicals to achieve that. And finally, it ultimately shifts someone’s mood, that’s why a lot of people drink in the first place.” 

The holistic medicine doctor turned entrepreneur said it makes it easy to not drink alcohol when you are given the same experience with something that is actually good for you. 

“We take all of the mushrooms, all of the herbs, we masquerade them, mix them with water, we put them in the back of the tube and let them get more concentrated,” said Octavio on the involved production process. 

 “After 40 days, we press all of the mushrooms and herbs and the liquid out and that's the active ingredient, that's the kind of medicine that's in the bottle,” she said. 

Although many younger drinkers have started to consume less alcohol, Octavio said many of the company’s customers are older consumers looking to cut alcohol out because they either have a problem with it, or cannot handle it anymore for health reasons. 

“I've seen all the research and I knew that mushrooms have a distinct health benefit, but what I didn't realize until I produced the drinks is that people actually notice it,” said Octavio. 

“The thing that blew me away was people were like, ‘I feel better, my skin is clear, I sleep better, my weight is normalized. My digestion has improved. I still feel more hopeful, more optimistic, more positive.’”

True to its mission, the Ceylon AF products bring different experiences to consumers similar to that of different cocktails. But unlike alcohol, the products are “very much a daily drink, you really can’t overdo it with these,” said Octavio. 

The first flavor profile, Chill AF, is a summer favorite, she said, similar to a gin-based cocktail and is great for a pre-meal drink. The second flavor profile, Happy AF, has a taste and experience similar to that of a mezcal and is best enjoyed in accompaniment to a meal. Finally, Bright AF, is good hot or cold, and best for a post-meal drink, like that of a hot toddy or sweet port wine. 

The elixirs, which the company also still carries, can be added to water or seltzer and are much more concentrated. 

Aside from consumers such as Gen Z who are drinking less, and older generations like older women going through menopause or older men who can no longer tolerate alcohol, Octavio said it has seen positive remarks from wholesalers as well. 

“Since we have similar properties to alcoholic drinks, bars like to work with us because it’s what they know, and they can add us to any exotic drink they want to feature on a menu.”

The CEO and founder said they have also seen success with corporate partners like car companies who are moving away from associating themselves with alcohol brands.

More and more companies are churning out alcohol-free beverages, such as mocktails, as consumers become more aware of the harmful side effects of booze.

As far as competitors, Octavio touted that “there’s really no one out there doing what we are, and offering what we can.”

BodyArmor is launching a zero-sugar product as the Coca-Cola-owned brand takes aim at a similar Gatorade beverage from rival PepsiCo. 

The new extension, BodyArmor Zero Sugar, targets the fast-growing no-sugar category in sports drinks valued at $2 billion, according to Nielsen data provided by the brand. It will initially be available in four flavors: Fruit Punch, Lemon Lime, Orange and Cherry Lime.

“Zero Sugar is somewhere that BodyArmor needs to play,” Sabrina Niland, vice president of innovation with BodyArmor, said in an interview. “There’s a host of consumers that we are not able to reach right now because they're sugar avoiders.”

After a rocky start following Coca-Cola's $5.6 billion purchase of the rest of BodyArmor it didn’t own in 2021, the beverage giant appears to have stabilized the business enough that it feels comfortable introducing the sports drink to a broader range of consumers through new product offerings. 

Niland said new leadership installed by Coca-Cola after the acquisition identified zero sugar and rapid hydration as two untapped areas for BodyArmor. The company entered the rapid rehydration beverage category in June 2023 with BodyArmor Flash I.V., the brand’s first major product offering in two years. 

In both rapid hydration and now zero sugar, BodyArmor is entering a category where Gatorade and other players dominate. This places the impetus on Coca-Cola to woo consumers to the BodyArmor brand through taste and aspects that set it apart. 

BodyArmor Zero Sugar is leaning big into its health credentials, touting the new offering as the first better-for-you item in the $10.7 billion sports drink category. 

That’s “what sets us apart from the rest of the category,” Niland said. “It’s a huge, huge segment of sports drinks that have not had a better-for-you offering.”

BodyArmor, which was created in 2011, has grown into a $1 billion-plus premium sports drink brand through low sodium and high potassium levels, antioxidants, vitamins B and C and the absence of artificial colors and flavors. These attributes are incorporated in BodyArmor Zero Sugar.

One ingredient missing from prior iterations of BodyArmor is coconut water; it was replaced with stevia to allow the product to be labeled zero sugar.

It’s no surprise that consumers are curtailing their sugar consumption as part of a pursuit to improve their health. 

While BodyArmor has touted the better-for-you ingredients in its drink, having one without sugar was a notable void for the beverage. Niland, who previously worked at Danone and PepsiCo before joining BodyArmor in June 2022, admitted she was “surprised” by the absence of a zero sugar line.

BodyArmor has made notable inroads in sports drinks in just over a decade, but it remains a distant player in the category behind Gatorade. BodyArmor and Powerade, also owned by Coca-Cola, have a combined 23% market share, according to Nielsen AMC data provided by the beverage giant, while Gatorade, including G Zero, is at 64%.

Powerade had the first zero-sugar launch in 2007, Niland said, which gave Coca-Cola “the knowledge and the credentials” in the zero-sugar segment of sports drinks. 

Similar to the decades-long battle between Coke and Pepsi in soft drinks, Coca-Cola is gunning for PepsiCo with the Zero Sugar launch.

BodyArmor provided information comparing the nutritional attributes and ingredients of its Zero Sugar compared to a G Zero. The data showed Zero Sugar has more potassium and magnesium. It also has zinc and vitamins B and C that G Zero doesn’t. One area where Gatorade narrowly trumps Zero Sugar is with fewer calories; four calories compared to 10.

”We’re going up against Goliath, and we’re really focused on becoming No. 1,” Niland said. “We’ll continue to innovate across [Powerade and BodyArmor], to drive growth for the category and for our brands.”

She said BodyArmor is working on “a ton of other opportunities,” including new categories and extensions of existing products that could hit the market in the coming year. “That pace [of innovation] will not slow down,” Niland noted. 

Tilray Brands announced the launch of a nonalcoholic beer brand, Runner’s High Brewing Company, targeting active consumers looking for a healthier alternative to beer. It debuted in Atlanta, with an expansion into more markets planned.

The brews will debut in three varieties: Golden Wheat containing citrus notes, Raspberry Wheat with a raspberry jam taste and Dark Chocolate which evokes moist chocolate cake, the press release said. Each can contains between 60 to 90 calories.

Runner’s High allows Tilray to grow its presence beyond its cannabis roots. In August 2023, Tilray purchased eight beer and alcohol brands from Anheuser-Busch for an undisclosed amount.

Cannabis companies, facing federal restrictions on selling their products across state lines, have seen their growth potential impeded by the complex legal terrain for selling the plant in the U.S. In turn, some are looking for new revenue streams in categories outside of their traditional wheelhouse, namely beer.

The theme of the nonalcoholic beer targets runners, aiming to be the drink of choice for people who enjoy the exercise for sport or a hobby, according to the company. Runner’s High is looking to “elevate, motivate and celebrate the unique lifestyle of the social running community,” according to the press release. 

Tilray is positioning the brew as an alternative to alcohol for consumers who do not want to handle the negative health and well-being effects associated with imbibing.

Previously viewed as a lesser alternative to traditional alcoholic beer, the nonalcoholic category is seen as a viable alternative for consumers looking to drink less. The category saw 35% growth in 2023, according to Athletic Brewing, which has a 19% share of the space. This month, Athletic announced its purchase of a second manufacturing facility in San Diego to help it meet demand for its brews.

Runner's High allows Tilray, which has turned to acquiring brewers in the 2020’s, to develop a beverage footprint with brands of their own. Some of the beer brands Tilray bought from Anheuser-Busch included craft beers Shock Top, Redhook Brewery and Square Mile Cider Company. In 2022, Tilray acquired beer producer Montauk Brewing.

Alcohol giants are experimenting with nonalcoholic brews as the category gains steam. Sam Adams maker Boston Beer debuted General Admission, which the company said combines the tastes of beer and hard seltzer, in select locations and online in early 2024.

With celebrity-backed products inundating the beverage market, one new coffee brand believes it is carving out a niche for active adults seeking a less sugary alternative.

Throne Sport Coffee launched in 2024 with the help of its famous lead investor: Kansas City Chiefs quarterback Patrick Mahomes. The company sells ready-to-drink iced coffee with functional attributes like electrolytes and B vitamins. The brand also touts a lower sugar count. Their Mocha Java, Salted Caramel and French Vanilla flavors have just 50 calories and 8g of natural cane sugar. The brand’s Black only has 25 calories and 1g of natural cane sugar. Throne offers coffee in four varieties: Black, French Vanilla, Salted Caramel and Mocha Java.

Founder and CEO Michael Fedele — a beverage industry veteran who previously served in executive roles at BodyArmor — told Food Dive that he saw an opening for a ready-to-drink coffee that delivered on taste but cut out sugar and included added benefits.

Fedele began drinking black coffee 13 years ago after he was diagnosed with thyroid cancer and could not consume sugar. He wanted to create a coffee product that could provide a more functional alternative to other products on the market.

“If you walk in to the coffee section of the convenience store and see that glass bottle product that is the number one SKU in ready-to-drink coffee with a big prominent brand name, when you turn it over you’ll see it has 300 calories and 46 grams of sugar,” Fedele said. “Why do consumers have to indulge in something like that if they just want to get caffeine to get them going? We decided to create a better-for-you option.”

Throne Sport Coffee has five full-time employees, all of whom previously worked at BodyArmor. The company expects to expand the team. According to Fedele, the initial response to the product from consumers has been very positive, and retailers are excited about the product because of the variety it brings to RTD coffee shelves.

After Fedele was introduced to Mahomes through mutual acquaintances, he said the NFL star was instantly drawn to the product, as he drinks four or five coffees a day. According to Fedele, Mahomes is involved at a very high level shaping the direction for the brand.

“The active adult deserves more from their coffee, so he immediately understood the proposition and felt it was important to him,” Fedele said.

Throne Sport Coffee has its eye on the future, as the brand hopes to slot into the regular coffee consumption of consumers with an athletic lifestyle. Fedele said the brand has a “deep innovation pipeline,” but is going to remain focused on ready-to-drink coffee items for the near future. During his tenure at BodyArmor, the CEO said he learned to focus on what’s in front of you while still thinking ten steps ahead.

“I can come out tomorrow and launch a dozen different coffee variations and products, but if none of them work, what does it matter? We’re really making sure that we’re focused on building this ready-to-drink from the jump,” Fedele said. “But I’m a marketer, so I’ve got a bunch of ideas to grow Throne Sport Coffee over the years.”

Juice and functional beverage producer Suja Life has acquired soda brand Slice from its most recent owner New Slice Ventures LLC, with plans to relaunch it in 2025 as a better-for-you offering with gut health benefits, it announced Monday.

The beverage company said the newly launched Slice offers consumers a low sugar, clean label soda under the banner of a nostalgic brand. The drink will feature a new formula compared to previous iterations of Slice with healthier ingredients, according to the press release.

“With the acquisition of Slice, we are making it easier for consumers to choose a better-for-you beverage,” said Maria Stipp, CEO of Suja Life, in a statement. “We all want to feel good about what we drink while still enjoying great taste, and Slice does that while providing functional benefits and low sugar.”

Slice first launched in 1984 by PepsiCo in a bid to compete with Coca-Cola’s dominant offering Sprite, but was discontinued by the soft drink giant in the late 2000’s. PepsiCo also attempted to gain a stronger foothold in the lemon-lime soda category with Sierra Mist, which was replaced by Gen Z-targeted Starry upon its launch in 2023.

In 2018, New Slice Ventures LLC bought the trademark to Slice and launched its own version of the drink with lower sugar and real fruit juice.

The newly launched Slice comes as gut health-infused sodas rapidly gain steam as drinkers seek functional attributes from their soft drinks, including Olipop and Health-Ade’s SunSip. Poppi, which contains prebiotics and apple cider vinegar, has posted triple-digit growth in recent years. Poppi’s CEO Allison Elsworth denied the brand is a target of M&A from soda giants like Coca-Cola and PepsiCo in an interview with Food Dive in 2024.

The move comes as Suja Life seeks to chart a new path under the leadership of Stipp, who took the helm of the company in February. In early 2024, its juice brand Suja Organic entered the protein shakes category with ready-to-drink offerings containing 16 grams of protein in Vanilla Cinnamon, Chocolate, and Coffee Bean flavors. In 2022, the company acquired juice brand Vive Organic.

Celsius Holdings is looking at “adjacent categories” such as food or water that it could enter in the U.S., but CEO John Fieldly cautioned that any expansion would be several years away and that the company remains focused on growing its popular energy drink.

“We’re always looking at adjacent categories, white space, how far can the brand go,” Fieldly said in an interview. “We don’t have anything in the works right now, but those are things that, when you look at our three- to five-year strategy and road map, can the brand expand?”

Fieldly cautioned that other beverage brands have had mixed results entering new categories.

PepsiCo’s Gatorade, he noted, has been wildly successful after branching out from its position as a hydration beverage into protein bars, powders and even dietary supplements through gummies. At one point it sold Gatorade gum, but the offering was discontinued in 1989. PepsiCo currently owns an 8.5% stake in Celsius.

In stretching the Celsius brand, Fieldly mentioned functional water, hydration, protein shakes or bars and “some type of confectionary” as potential options. A new product could be sold as an entirely new brand that is “powered by Celsius” or it could be placed under the Celsius banner. The company has a protein bar line in Finland called Fast, but it is a small part of the larger business.

“Those are the things we talk about,” he said. “I don’t have the answer, but it’s a really, really good question.”

For now, Fieldly noted that Celsius is “staying focused” on the “massive opportunity” it has in energy drinks.

In 2018, Celsius was largely unknown in the energy drink space. It had little market share and $53 million dollars in annual revenue. The beverage maker’s products were predominately sold in gyms.

As of 2024, its market share has swelled to nearly 12%, revenue in 2023 topped $1.3 billion and its beverages are found everywhere from Walmart and 7-Eleven to Jersey Mike’s and Dunkin’ Donuts. Fieldly noted that Celsius is attracting new consumers to energy drinks and driving growth in the space, assets that are attractive to retailers.

Celsius has quickly become a force in the $19 billion U.S. energy drink space due to its use of functional ingredients and the popularity of its exotic flavors, such as Sparkling Green Apple Cherry and Mango Passionfruit. 

Despite its rapid growth, Fieldly said Celsius is “just getting started” in energy, noting the company has identified convenience stores and international markets as two of its largest growth opportunities.

The company is expanding usage occasions for its beverages outside of fitness by getting into more restaurants, pairing the drink with food at different stores and incorporating it as an ingredient in mocktails. It also remains a major beneficiary of consumer interest in health and wellness trends.

“We’re innovating” the energy drink sector, Fieldly said. “That’s our mission right now.”