Celsius Stock Goes From Rock Star to Rockstar

One of this year's biggest turnaround stories continues to make moves in the right direction. Celsius Holdings (NASDAQ: CELH) shares are moving higher on Friday after the company expanded its relationship with global beverage giant PepsiCo (NASDAQ: PEP). Celsius will take ownership of PepsiCo's Rockstar Energy brand in the U.S. and Canada. In return, the soft drink icon will acquire $585 million in a 5% convertible preferred stock, boosting its stake in Celsius from 8% to 11%.PepsiCo was already the distributor for Celsius' namesake brand in the U.S. and Canada. The new deal covers distribution of Alani Nu, the market share gobbler that Celsius acquired in the springtime of this year.It's a win for both beverage stocks. Celsius adds a more conventional energy drink to its portfolio, one that PepsiCo shelled out $3.85 billion for just five years ago. It also gets its distributor even more aligned with Celsius' interests given PepsiCo's larger stake in the business. PepsiCo also comes out ahead. With Alani Nu to distribute, it now has the fastest-growing brand in the functional beverage market on its roster. It's giving up Rockstar on its home turf for a song, but now it gets to see if someone else can make the meandering brand relevant under new leadership.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool