Are Monster and Red Bull scared?
Celsius. The New Disruptor! Equity Research! Part 2/3.
Welcome to Part 2 of this Celsius Deep Dive!
Celsius is the fast-growing energy drink upstart that’s seemingly on a path of taking over the fitness community. In Part 1 of this Deep Dive, I explored the story of Celsius and its marketing strategy! If you haven’t read Part 1, I recommend you read it before continuing with Part 2.
Today we are looking at Celsius distribution strategy and how the company differs from its main competitors Red Bull and Monster!
1. Distribution
2. Competition
3. Brand Risk
4. Execution Risk
5. Part 3
1. Distribution
For all beverage companies creating a great product is only a small part of the equation. It doesn’t matter how many vitamins or enzymes are in your drink, or how delicious it might be, ultimately it won’t sell if it’s not in front of customers. A great marketing campaign might create interest in the brand, but if a customer can’t buy one when they are thirsty, what is the point? Thus, distribution is the most important aspect of any beverage company.
When Celsius started, the main strategy was to use various local distributors as middlemen. The company was too small to have direct manufacturer-to-retailer relationships. Celsius drinks were popular with gyms and fitness stores. Furthermore, they were available at select national and regional chains, but the sales were insignificant.
Since then, the company has developed a large and sophisticated distribution network.
