Celsius Holdings, the energy drink maker, saw its shares plummet to new 52-week lows on Monday, as the company grapples with slowing growth and a recent decision by its distribution partner, PepsiCo, to scale back orders. The stock has lost nearly half its value this year.
Monster Beverage Corp (MNST) announced a new $500 million share buyback program, sending its stock higher in after-hours trading. The move comes after the company reported weaker-than-expected earnings for the second quarter due to slower growth in the energy drink category in the U.S.
PepsiCo CEO Ramon Laguarta expressed satisfaction with the company’s partnership with Celsius Holdings, highlighting its alignment with their long-term goals and its benefits for shareholders. The partnership is seen as a strategic move for PepsiCo to gain scale in the energy drink category, which is a rapidly growing and profitable segment. Laguarta emphasized the importance of the partnership for PepsiCo’s go-to-market strategy, particularly in channels where volume is crucial for economic viability. Despite a slight decline in PepsiCo’s stock price during late morning trading, analysts remain optimistic about the company’s future prospects, citing the positive earnings report and the dissipation of headwinds.
