Celsius is now the number three energy drink in the category, CEO explains

Celsius CEO John Fieldly joins Yahoo Finance Live to discuss the growth the energy drink brand has seen on TikTok as lawmakers weigh a potential ban on the social media platform, while also highlighting the brand's partnership with PepsiCo.

Video transcript

- Let's move on. Chapter two, can we please do that?

[MUSIC PLAYING]

- Bro, you're actually funny.

- I knew that. A lot of people know that. I'm-- OK, what's getting me is the actually.

- Go ahead.

- Let's light this can.

SEANA SMITH: Those are some TikToks there from energy drink company, Celsius Holdings, which recently crossed 2 million followers on the TikTok app. And their popularity there is one of the reasons why we have seen that stock soar, outperforming here up nearly 70% in just the past year. But after lawmakers grilled TikToks CEO on Capitol Hill last week, there's lots of talk about a potential ban. And a new Pew Research poll showing that half of americans would actually support a ban of the apps.

So let's talk about the potential business impact of that possible ban. For that, we want to bring in John Fieldly, Celsius Holdings CEO. And John, it's great to speak with you here, lots of talk about-- the ban on TikTok, the business implications there. You obviously have a massive presence on TikTok. So what would that mean for your business?

JOHN FIELDLY: Yeah. I mean, TikTok has been a great platform for us to really connect with consumers and a specific audience in a really relatable way. And as you mentioned, we just achieved 2 million followers, which is a great accomplishment. Actually, I've only been on the platform for about a year, a little over a year now.

So you know, it's a great marketing vehicle for us. Social media continues to evolve and adapt. And on TikTok specifically, a lot of great creators as well. So there's a lot of people making a living on that platform, and you know, which is key to them. In regards to our marketing and initiatives and the way we connect with consumers, we see a lot of opportunities, you know, further expanding on TikTok, also YouTube, with YouTube Shorts being added, also on Snapchat taking opportunity, getting into the short video.

So you know, it's there's a variety of different platforms. We kind of stay ahead of the trends and where the consumers and the communities are moving to and where they're going. So the key would marketing brands is being agile. So you know, with Celsius here, we're very agile. And it'll be, you know, it would be disappointing if it is taken down. But we'll be agile and move on. But it is a key component. And getting 2 million followers with a core community is really-- is, you know, something we're really proud of.

SEANA SMITH: John, you mentioned the fact, YouTube Shorts and Snap to other social media platforms, where you are seeing a lot of traction. Is that where you are going to go and focus on if TikTok is banned?

JOHN FIELDLY: Yeah, absolutely. I mean, consumers are spending more time on their phones within these social platforms than ever before. I think some of the latest data that just came out, it's over almost two hours a day, two to three hours a day, I believe the latest data, is consumers are spending on these social media platforms, which is substantial, longer times engaging in social platforms than on TV these days.

So it is a definitely way brands are connecting with consumers. You've got to be on the social media. I always say, on the phone is really critical. So we are engaging on YouTube. YouTube Shorts, Snapchat, Facebook, Instagram has been key to get the brand out, and really connect with more consumers, and connect with their communities. And brands are all about community building. And that's where these platforms allow you to really get close to your consumer.

SEANA SMITH: Yeah, John, national security risk, obviously, some social impacts of-- from TikTok was kind of the one side that was portrayed while TikTok CEO was on Capitol Hill last week. Is that consistent with what you see? Or what is your view of TikTok?

JOHN FIELDLY: Yeah. I know there's a there's a lot of questions about it and controversy. You know, we see it as a really a great way to connect with consumers on a creative way. A lot of creativity, a lot of creative users, and a lot of great fun dancing out there with some short videos. So we have a lot of fun with it. We see it as a great way to engage with consumers. On our platform, we have 2 million followers. We do a lot of great content around the office as well and show people behind the scenes.

So we have a great-- a lot of fun with it, a lot of exciting times. And you know, we'll move and be agile, which is key. But as it is today, we're having fun with it every day.

SEANA SMITH: Certainly, it's very easy to get lost in that feed. John, I mentioned your stock performance in the intro there. It has been really performing extremely well over the past year up just about 70%. You've seen some of those gains slip a little bit since the start of the year. What is it that you think is really driving that momentum? And what is it going to keep investors excited about Celsius?

JOHN FIELDLY: We're really excited now, we just put up a record year in 2022, really drove great revenues. We also just partnered with PepsiCo last year, which really started off our distribution partnership in October of last year. We're now the number three energy drink in the category. And we're in about 90% of all stores around the US and growing exponentially.

So really, gaining more consumers each day, we have a great product, great innovative products. I'm drinking a brand new lemon lime flavor we just launched, one of the most refreshing energy drinks on the market that we're told. So taste great. We're ahead of the trends. We have over seven essential vitamins with green tea, ginger, and guarana. We taste great. We offer a function, clinically proven functionality. And we're fitness forward position. And all about living fit and living healthy and bring it living life to its fullest. So Celsius live fit, essential energy for life. And exciting, it's exciting time for the company, and all of our employees, and our fans, and our followers as well.

SEANA SMITH: And John, I wish I had a Celsius here on set. It will really help me get through on this Friday afternoon. You mentioned that partnership here with Pepsi. Any thought just in terms of would you ever be open to a potential acquisition, given the fact that your industry is so competitive, and you're up against a lot of those larger players?

JOHN FIELDLY: It is really tough. I mean, we're up against two of the largest brands in all of CPG. And there are truly two monsters ahead of us to say. But it's exciting right now, you know, with a brand is. We're publicly traded, so I guess we're for sale every day of the week. But at this point, you know, we're working hard. We have a great team behind us.

We have over 350 employees growing every day. We have new retailers coming on board. And you know, it's just a really exciting prime. The brand, that flavors taste great. It's exciting. I'm just glad to be here with the team. And our team is working hard. So we're excited for the future.

SEANA SMITH: All right. Celsius shares, like I said, up just about 70% in the last year. John Fieldly, CEO of Celsius, thanks so much.

JOHN FIELDLY: Thank you.