## What traders “heard” at CAGNY: a distribution **control** story masquerading as an expansion update The CAGNY excitement makes more sense when you map it to Celsius’ most recent disclosures: management has already put in place an operating model that doesn’t just *reach* shelves—it increasingly *shapes* what happens on those shelves. In its latest quarterly disclosure, Celsius describes the “Captaincy” with PepsiCo as an enhanced arrangement where Pepsi is obligated to use “commercially reasonable efforts” to sell and distribute the portfolio—and critically, where Celsius has “enhanced control and oversight” inside Pepsi’s U.S. distribution network, including the ability to determine “product facings” and “merchandising allocations,” plus influence over promotional priorities. ["enhanced control and oversight"](0001341766-25-000144|0) ["ability to determine product facings"](0001341766-25-000144|0) ["merchandising allocations"](0001341766-25-000144|0) That nuance is the “between-the-lines” alpha: when a brand platform gains mechanisms to steer facings/allocations during retail resets, the upside isn’t just incremental distribution—it’s a higher probability of winning the reset itself (and then sustaining it). ["jointly developed sales, placement, and promotional priorities"](0001341766-25-000144|0) --- ## Portfolio expansion is not just breadth—it’s a deliberate *channel-fit* strategy (Celsius + Alani Nu + Rockstar) Celsius’ filings make clear that the portfolio has evolved into a multi-brand system spanning CELSIUS, Alani Nu, and Rockstar. ["portfolio primarily consists of energy drinks"](0001341766-25-000144|0) The company also discloses that Pepsi became the primary distributor of Alani Nu and Rockstar (with Celsius already in the system), effectively turning what used to be a single-brand distribution story into a scaled portfolio push through one of the most powerful beverage routes to market. ["Pepsi became the primary distributor of Alani Nu and Rockstar"](0001193125-25-278019|4) ["become the primary distributor of Alani Nu and Rockstar products"](0001341766-25-000144|0) In other words, investors weren’t just reacting to “expansion plans”—they were reacting to a portfolio architecture that can credibly broaden household penetration across different consumer occasions and brand identities, while still leveraging the same distribution infrastructure. ["Together these brands serve a broad range of consumers"](0001341766-25-000144|0) --- ## Shelf-space gains have an economic engine behind them: incentives, placement, and “reset math” Retail shelf wins are rarely won by talk—they’re won by economics and execution. Celsius’ disclosures explicitly reference the mechanics that matter during resets: promotional allowances include “slotting, shelf space allowances and other fees” and reimbursements tied to shelf-space programs. ["slotting, shelf space allowances"](0001341766-25-000144|0) Separately, the Rockstar carve-out financial statements describe “Total marketplace spending” as including payments for “in-store displays,” payments to gain distribution of new products, and payments for “shelf space,” which is effectively the industry’s playbook for converting distribution ambition into physical reality. ["payments for shelf space"](0001193125-25-278019|2) ["payments to gain distribution"](0001193125-25-278019|2) This is why a conference presentation can ignite a move: if the market believes the reset cycle is imminent, the filings show Celsius already has (1) a distribution partner with scale and (2) the commercial toolkit (facings/merch allocations + spend programs) that tends to determine who captures incremental shelf real estate. ["prioritize the Company's products"](0001341766-25-000144|0) ["determine product facings"](0001341766-25-000144|0) --- ## Quiet confidence signals: alignment with Pepsi + capital return flexibility Two “non-obvious” signals in the latest disclosures reinforce the market’s willingness to underwrite the growth narrative into earnings: 1) **Governance/partner alignment tightened further.** Celsius disclosed that two Pepsi-designated directors resigned and were replaced with senior Pepsi executives, appointed pursuant to Pepsi’s Board designation rights. That reads as deeper operational alignment—not less. ["appointed Ms. Chrysso (Christy) Jacoby"](0001193125-26-044973|0) ["selected to serve on the Board pursuant"](0001193125-26-044973|0) 2) **Capital allocation optionality was explicitly put on the table.** Celsius announced a new **$300 million** share repurchase authorization, framing it as flexibility to act when there’s a “disconnect” between valuation and fundamentals—an investor-facing message that management is prepared to defend the stock while still funding growth. ["repurchase up to $300 million"](0001193125-25-273245|1) ["disconnect between Celsius’ market valuation"](0001193125-25-273245|1) --- ### Important disclosure check (re: the specific CAGNY metrics in your claim) The most recent SEC filings I pulled for Celsius substantiate the *distribution structure* (Captaincy, primary distribution for Alani Nu/Rockstar, influence over facings/merchandising, and shelf-space incentive mechanics), but they **do not** explicitly disclose the specific CAGNY-style datapoints you cited (e.g., exact U.S. market share %, 99.5% distribution, shelf-space % gains, portfolio retail sales figure, repeat rates) in the excerpts reviewed. ["enhanced control and oversight"](0001341766-25-000144|0) ["Pepsi became the primary distributor"](0001193125-25-278019|4)

## What traders “heard” at CAGNY: a distribution **control** story masquerading as an expansion update The CAGNY excitement makes more sense when you map it to Celsius’ most recent disclosures: management has already put in place an operating model that doesn’t just *reach* shelves—it increasingly *shapes* what happens on those shelves. In its latest quarterly disclosure, Celsius describes the “Captaincy” with PepsiCo as an enhanced arrangement where Pepsi is obligated to use “commercially reasonable efforts” to sell and distribute the portfolio—and critically, where Celsius has “enhanced control and oversight” inside Pepsi’s U.S. distribution network, including the ability to determine “product facings” and “merchandising allocations,” plus influence over promotional priorities. ["enhanced control and oversight"](0001341766-25-000144|0) ["ability to determine product facings"](0001341766-25-000144|0) ["merchandising allocations"](0001341766-25-000144|0) That nuance is the “between-the-lines” alpha: when a brand platform gains mechanisms to steer facings/allocations during retail resets, the upside isn’t just incremental distribution—it’s a higher probability of winning the reset itself (and then sustaining it). ["jointly developed sales, placement, and promotional priorities"](0001341766-25-000144|0) --- ## Portfolio expansion is not just breadth—it’s a deliberate *channel-fit* strategy (Celsius + Alani Nu + Rockstar) Celsius’ filings make clear that the portfolio has evolved into a multi-brand system spanning CELSIUS, Alani Nu, and Rockstar. ["portfolio primarily consists of energy drinks"](0001341766-25-000144|0) The company also discloses that Pepsi became the primary distributor of Alani Nu and Rockstar (with Celsius already in the system), effectively turning what used to be a single-brand distribution story into a scaled portfolio push through one of the most powerful beverage routes to market. ["Pepsi became the primary distributor of Alani Nu and Rockstar"](0001193125-25-278019|4) ["become the primary distributor of Alani Nu and Rockstar products"](0001341766-25-000144|0) In other words, investors weren’t just reacting to “expansion plans”—they were reacting to a portfolio architecture that can credibly broaden household penetration across different consumer occasions and brand identities, while still leveraging the same distribution infrastructure. ["Together these brands serve a broad range of consumers"](0001341766-25-000144|0) --- ## Shelf-space gains have an economic engine behind them: incentives, placement, and “reset math” Retail shelf wins are rarely won by talk—they’re won by economics and execution. Celsius’ disclosures explicitly reference the mechanics that matter during resets: promotional allowances include “slotting, shelf space allowances and other fees” and reimbursements tied to shelf-space programs. ["slotting, shelf space allowances"](0001341766-25-000144|0) Separately, the Rockstar carve-out financial statements describe “Total marketplace spending” as including payments for “in-store displays,” payments to gain distribution of new products, and payments for “shelf space,” which is effectively the industry’s playbook for converting distribution ambition into physical reality. ["payments for shelf space"](0001193125-25-278019|2) ["payments to gain distribution"](0001193125-25-278019|2) This is why a conference presentation can ignite a move: if the market believes the reset cycle is imminent, the filings show Celsius already has (1) a distribution partner with scale and (2) the commercial toolkit (facings/merch allocations + spend programs) that tends to determine who captures incremental shelf real estate. ["prioritize the Company's products"](0001341766-25-000144|0) ["determine product facings"](0001341766-25-000144|0) --- ## Quiet confidence signals: alignment with Pepsi + capital return flexibility Two “non-obvious” signals in the latest disclosures reinforce the market’s willingness to underwrite the growth narrative into earnings: 1) **Governance/partner alignment tightened further.** Celsius disclosed that two Pepsi-designated directors resigned and were replaced with senior Pepsi executives, appointed pursuant to Pepsi’s Board designation rights. That reads as deeper operational alignment—not less. ["appointed Ms. Chrysso (Christy) Jacoby"](0001193125-26-044973|0) ["selected to serve on the Board pursuant"](0001193125-26-044973|0) 2) **Capital allocation optionality was explicitly put on the table.** Celsius announced a new **$300 million** share repurchase authorization, framing it as flexibility to act when there’s a “disconnect” between valuation and fundamentals—an investor-facing message that management is prepared to defend the stock while still funding growth. ["repurchase up to $300 million"](0001193125-25-273245|1) ["disconnect between Celsius’ market valuation"](0001193125-25-273245|1) --- ### Important disclosure check (re: the specific CAGNY metrics in your claim) The most recent SEC filings I pulled for Celsius substantiate the *distribution structure* (Captaincy, primary distribution for Alani Nu/Rockstar, influence over facings/merchandising, and shelf-space incentive mechanics), but they **do not** explicitly disclose the specific CAGNY-style datapoints you cited (e.g., exact U.S. market share %, 99.5% distribution, shelf-space % gains, portfolio retail sales figure, repeat rates) in the excerpts reviewed. ["enhanced control and oversight"](0001341766-25-000144|0) ["Pepsi became the primary distributor"](0001193125-25-278019|4)