Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
Taiwan Says Moving 40% of Semiconductor Production to the U.S. Is Impossible 
Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Innovent Biologics Shares Rally on New Eli Lilly Oncology and Immunology Deal 
American Airlines CEO to Meet Pilots Union Amid Storm Response and Financial Concerns 
UK Starting Salaries See Strongest Growth in 18 Months as Hiring Sentiment Improves 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 
Asian Currencies Stay Rangebound as Yen Firms on Intervention Talk 
Trump Backs Nexstar–Tegna Merger Amid Shifting U.S. Media Landscape 
Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge 
PepsiCo Inc. revealed on Monday, Aug. 1, that it had invested $550 million in Celsius Holdings Inc. for a long-term strategic distribution deal. The transaction also awarded the New York-headquartered snack and beverage producer with a stake share in the company.
As per CNBC, the share price of Celsius Holdings immediately rose by eight percent in the morning trading as the news about the deal with Pepsico spreads. With the increase, the market value of the company rose to $6.7 billion.
Celsius Holdings is a leading global fitness energy drink maker, but it is a relatively smaller firm compared to PepsiCo. It said that it agreed to a distribution arrangement with the snack and beverage giant, and this agreement will transition Celsius' present distribution in the U.S. to PepsiCo's top-notch capabilities.
Moreover, as part of the deal, the Frito-Lay manufacturer will also invest in Celsius to help with its growth plans. It will also nominate a director to sit and serve on the fitness energy drink producer’s Board of Directors. On the other hand, Celsius expects to be given more shelf space in its existing retailer partners while also adding more independent store outlets such as gas stations.
“We are extremely pleased to partner with Celsius and excited about the opportunity for our two organizations to drive growth and innovation in the energy beverage category,” PepsiCo Beverages North America’s chief executive officer, Kirk Tanner, said in a press release.
The chief added, “The Celsius brand’s growing momentum coupled with the strength of PepsiCo’s portfolio and go-to-market capabilities create a combination we believe will be very compelling and valuable to retailers and consumers.”
John Fieldly, the president, chairman, and CEO of Celsius, also commented on its agreement with PepsiCo, “We believe the opportunity to partner with a global best-in-class distributor provides Celsius with significant near-term additional shelf space in both existing retailers as well as new expansion within the independent retailers that represent a significant portion of the U.S. convenience and gas channel.”
Meanwhile, PepsiCo’s $550 million investment in Celsius is equivalent to just a minority stake ownership of about 8.5%. It will start helping the latter with its distribution this week.
