Costco Launches Rival Energy Drink, Celsius Stock Price Plummets

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Investing.com – Celsius Holdings Inc (NASDAQ:CELH) stock dropped about 7% on Tuesday after Costco Wholesale began selling its own private label energy drinks that directly compete with the company’s products.

This week, Costco launched Kirkland Signature sparkling energy drinks, priced at $16.99 for a 24-can pack, offering peach, orange, and tropical fruit flavors. At approximately $0.70 per 12-ounce can, Kirkland’s product is significantly cheaper than Celsius. Each can contains 200 mg of caffeine, zero sugar, matching Celsius’s product features.

In comparison, a 24-can pack of Celsius costs $37.99 on Costco’s website, with a single flavor option at $1.58 per can. On Amazon, a 12-can single-flavor pack of Celsius sells for about $19.98.

Social media shoppers have commented that Kirkland energy drinks have a similar bubbly texture and flavor to Celsius. The launch has sparked negative sentiment, with the stock trading between $37 and $39 on Tuesday.

Given that Costco has historically been an important sales channel for Celsius, this private label poses a significant threat.

The launch highlights the increasing price pressure in the energy drink category. Celsius continues to expand through Pepsi’s distribution network and recent acquisitions like Alani Nu, but now faces direct competition from one of its key retail partners at much lower prices.

This article was translated with the assistance of AI. For more information, please see our Terms of Use.

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