$CELH Isn't Selling Energy Drinks, It's Selling a Lifestyle
$Celsius Holdings, Inc.(CELH)$ is not a beverage manufacturing company, it is in the beverage marketing business.
Celsius and Alani Nu took a page from the playbook of successful athleisure brands such as Lululemon, Gymshark, and Nike.
Women are generally more concerned about their well-being than men. These brands saw the spike in popularity of various gym classes, Yoga, Peloton, etc., and realized that there was massive money to be made.
By making a product that not only emphasized performance but was also very visually appealing, they combined fashion and sports.
Women desire to be beautiful and feel great spiritually. These brands tapped into that desire and sold it to women. The message was “If you wear our leggings, you are beautiful, fit, athletic, and healthy spiritually,” and women loved it.
In a similar manner to athleisure brands, Celsius mingled the practical characteristics of a product (stretchy sports clothing and energy drinks) with a resonating message (yoga, athletics, and better-for-you) and packaged it beautifully (shapewear leggings and colorful cans) to sell a feeling, not a product!
This is in stark contrast to most established energy drink brands that are 80% men, Celsius is reportedly 50% female, whilst Alani Nu is 80% female.
$Celsius Holdings, Inc.(CELH)$ is starting to look interesting!
- 3 Brands
- Inflecting Profitability
- 70% 2028 EPS CAGR
- Reasonable Valuation
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