Celsius Acquires Alani Nutrition as Functional Beverage Market Poised To Grow
Celsius is purchasing Alani Nutrition, which includes a portfolio of functional beverages — drinks that provide specific health benefits beyond basic hydration — and energy drinks and protein powders bars.
“The closing of this transaction further strengthens our ability to grow the energy drink category and reach new consumers who seek better-for-you, functional beverages as a healthier alternative to traditional, sugary energy drinks,” said Celsius Chairman and CEO John Fieldly in a statement.
Alani Nu will operate within Celsius, and members of the leadership team from Alani Nu’s previous owners will continue on as advisors.
Also read: Celsius Names President & COO
Focus on Wellness & Energy
The acquisition helps Celsius grow market share in the functional beverage and energy spaces, which continue to grow in popularity. PepsiCo joined the functional soda landscape just earlier this month with its acquisition of Poppi in order to compete against Coca-Cola’s own prebiotic launch, Simply Pop.
The category has made a splash in the celebrity world as well, with Snoop Dogg launching his own line (Iconic Tonics) in March in partnership with Harmony Craft Beverages.
In the U.S., sales of functional beverages increased 54% to $9.2 billion between March 2020 and March 2024, according to NielsenIQ. They now make up about 10% of the total U.S. non-alcoholic beverage market. The ready-to-drink (RTD) energy market is also poised for growth, projected to reach $1.23 billion by 2032 — a CAGR of 6.22%, according to Fortune Business Insights.
