Celsius Holdings, Inc. (CSUH.OB) is a company focused on producing, distributing, and marketing its functional beverages. The company’s first subsidiary, Celsius Inc., develops and markets its beverages into the soft drink market. The company’s second subsidiary, Celsius Netshipments, Inc., focuses on distributing the beverages over the Internet. The company actually contracts the production of the beverages to concentrate suppliers.
Through a reverse merger in January 2007, Celsius acquired the operating business of Elite FX, Inc. Celsius is a calorie-burning soda that has become Elite’s first commercially distributed product. The beverage is currently available in five flavors: ginger ale, lemon/lime, orange, wild berry, and cola. The non-carbonated beverages are a healthier choice and are formulated with a very low sodium content and no sugar, preservatives, aspartame, or artificial flavors. The beverages do contain Metaboost™, a proprietary blend of ingredients that include green tea with EGCG, ginger, calcium, chromium, B vitamins and C vitamin. Scientific studies have shown the drink to raise metabolism over a three-hour period while keeping consumers energized and allowing them to burn up to 100 calories per can.
Over the summer, Celsius expanded its product line with two green tea flavored beverages. Celsius Green Tea Peach Mange and Celsiius Green Tea Raspberry Acai offer the same benefits of the original Celsius beverages, which raise metabolism over a 3-hour period. The company wanted to meet the needs of consumers who are becoming increasingly aware of the health benefits that green teas provide. The ready-to-drink tea niche of the beverage market grew an estimated 30% over the past year to $7.4 billion and is expected to reach $15 billion by 2012.
Celsius recently added Geary Cotton to its board of directors. Cotton joins the board with 15 years of experience as CFO for Rexall Sundown, a consumer products company. Although the business niche was different, Cotton brings practical knowledge on how to expand a fledgling company into an established entity. Cotton was an essential member of the dedicated team that built Rexall from $12 million to $800 million of recorded revenues. According to Jan Noreliad, CFO of Celsius, “We are looking forward to having another qualified addition to the board of directors, and one that has gone through stages of business development similar to what we have in front of us.”
Not only did the company recently announce the addition of a new board member, but it also marked the start of a new marketing campaign. With football season in the swing of things, the company is targeting a favorite convenience store for its Consumer Sports Promotion. Celsius, the Original Calorie Burner, is now available at 100 Walgreens in Atlanta, Georgia, and 45 Walgreens locations in Norfolk, Virginia. The beverages will be stocked at side panel displays or in the chilled beverage coolers. In-store promotions are available for consumers who purchase the Celsius beverage at select Walgreens locations.
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