Celsius Holdings Boosts Innovation and Production Capabilities with Strategic Acquisition of Big Beverages Contract Manufacturing

New manufacturing capabilities support product innovation and production flexibility

Active, modern beverage manufacturing facility and production line dedicated principally to Celsius manufacturing

Celsius Holdings, Inc. CELH ("Celsius"), maker of CELSIUS^®, the premium lifestyle energy drink formulated to help individuals LIVE FIT™, today announced that it is boosting its innovation and production capabilities with the acquisition of Big Beverages Contract Manufacturing, L.L.C. ("Big Beverages") for $75 million. The transaction was completed using cash on hand and closed on Nov. 1, 2024.

The strategic transaction provides Celsius with a 170,000-square-foot, modern manufacturing and warehouse facility that is expected to provide greater supply chain control, quicker innovation cycles and greater production flexibility. Charlotte, N.C.-based Big Beverages is a longtime Celsius co-packer, and the facility will continue to be principally dedicated to the manufacture of Celsius products. The Big Beverages management team and workforce are expected to remain with the operation.

Strategic Rationale

• Vertical integration of a plant primarily dedicated to Celsius provides incremental research and development and LTO (limited time offer) product opportunities, as well as a turnkey facility.
• Future expansion opportunities with ability to add additional capacity as the business scales and grows
• Per-case savings and improved leverage and margins expected
• Solid ROIC (return on invested capital) opportunity
• Earnings per share accretion potential

"We believe that this acquisition gives Celsius fantastic leverage to accelerate our product innovation and production capabilities so we can continue growing the energy drink category with our great tasting, functional and better-for-you performance energy drinks," said John Fieldly, Chairman and CEO of Celsius. "The experienced team and modern facilities at Big Beverages are best-in-class, and we're proud to continue working with these dedicated men and women to inspire even more consumers to live fit!"

Fieldly continued, "Vertical integration is a capital efficient growth lever that supports our vision to become the nation's leading energy drink brand and unlocks shareholder value potential through better margin and profit structure."

Founded in 2019, Big Beverages has been a trusted partner of leading beverage brands, known for its commitment to high-quality beverage production across the mid-Atlantic. It is one of the partners Celsius employs to manufacture quality beverages.

"The Big Beverages team has worked closely with Celsius for over four years, and we have always felt like we have been part of the Celsius family. We are proud of what we have accomplished, and we are very excited to join the most exciting and best tasting energy drink brand in the world," said Ryan Goff, CEO of Big Beverages.

Forward-Looking Statements

This press release contains statements that are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius' future results of operations or financial position, or state other forward-looking information. You can identify these statements by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "would," "could," "project," "plan," "potential," "designed," "seek," "target," and variations of these terms, the negatives of such terms and similar expressions. You should not rely on forward-looking statements because Celsius' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include but are not limited to: our ability to realize the benefits anticipated from acquisitions, such as the acquisition of Big Beverages, our ability to successfully manage and integrate the operations, internal controls, procedures, financial reporting and accounting systems of acquisitions, and other factors related to the operational challenges and risks of acquisitions, including (i) increased costs, indebtedness, contractual obligations and/or other liabilities; (ii) the expense of integrating acquired businesses; (iii) the ability to retain or hire the personnel required for the successful operation of the acquired business and expanded business operations, in general; (iv) the ability to retain the business relationships of the acquired businesses; (v) diversion of management's attention; and (vi) the availability of funding sufficient to meet increased capital needs, among others; the strategic investment by and long term partnership with PepsiCo, Inc.; management's plans and objectives for international expansion and future operations globally; general economic and business conditions; our business strategy for expanding our presence in our industry; our expectations of revenue; operating costs and profitability; our expectations regarding our strategy and investments; our expectations regarding our business, including market opportunity, consumer demand and our competitive advantage; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; our ability to satisfy, in a timely manner, all Securities and Exchange Commission (the "SEC") required filings and the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the rules and regulations adopted under that Section; and other risks and uncertainties discussed in the reports Celsius has filed previously with the SEC, such as its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date the statements were made. Celsius does not undertake any obligation to update forward-looking information, except to the extent required by applicable law.

About Celsius Holdings, Inc.

Celsius Holdings, Inc. CELH is the maker of energy drink brand CELSIUS®, a lifestyle energy drink born in fitness and a pioneer in the rapidly growing energy category. For more information, please visit www.celsiusholdingsinc.com.

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