PepsiCo has deepened its bet on energy drinks, spending $585 million to raise its stake in Celsius Holdings as demand shifts toward functional and health-focused beverages.
The deal adds 5% in Celsius preferred stock, lifting PepsiCo’s total holding to roughly 11% once converted. PepsiCo first invested in Celsius in 2022 with a $550 million purchase for an 8.5% stake. 
Celsius, known for its low-calorie, vitamin-infused energy drinks, has built a loyal following among health-conscious consumers avoiding sugary sodas. Its shares jumped nearly 5% on Friday, more than doubling in value so far this year.
“Energy is an important growth category, and this expanded partnership creates a stronger multi-brand energy portfolio,” said Ram Krishnan, CEO of PepsiCo Beverages North America.
The move reflects a broader trend of beverage makers chasing growth in energy, fitness, and lifestyle brands. In March, PepsiCo agreed to acquire prebiotic soda maker Poppi for nearly $2 billion, part of its push into “better for you” products.