By Megan Graham

Energy-drink maker Celsius is reaching beyond its core audience of athletes and other gym-goers in what it says is its biggest ad campaign yet.

"Live.Fit.Go" is meant to court "the everyday high-achiever," people who might want an energy boost in balancing a demanding career and busy home life while still chasing fitness goals, the company said. Ads will feature a firefighter and nurse, for example, along with a marathon runner.

Celsius has gained market share in a competitive category long dominated by Red Bull and Monster, partly through its image as a healthier alternative. Cans promise that Celsius provides "essential energy," "accelerates metabolism" and "burns body fat," often under an image of fruit. PepsiCo, which owns rival Rockstar Energy, in 2022 invested $550 million in publicly-traded Celsius.

Celsius sees an opportunity to broaden its consumer base beyond fitness and health and wellness, according to its chief marketing officer, Kyle Watson.

"You see consumers looking for more aspirational choices -- 'better for you,' more premium ingredients, but also that functionality that comes with it ... And it's not just about being in the gym," Watson said. "This campaign is really meant to take that DNA that we have and where our core is built and just expand that to a broader group of consumers, consumers that are living fit in every single thing they do every day."

The campaign, slated to begin in early June, will include traditional television, connected TV, paid social media, out-of-home ads and events.

The company declined to disclose how much it's paying for the new campaign. But its ad spend has been climbing: Last year, it totaled $222 million, up from $160 million in 2023 and $85 million in 2022, according to its latest annual report.

"We are increasing our marketing investments behind our core Celsius brand and our 'Live Fit' identity," Celsius Holdings Chief Executive and Chairman John Fieldly said in an early May earnings call. "These investments will support our strategy of reaching more people in more places more often."

Last year, Celsius had 8.5% volume share of the U.S. energy-drink category, according to data from Euromonitor, while its recent acquisition, Alani Nu, had 2.7%. But the category's larger incumbents present an ever-looming challenge: Monster Beverage brands held 46.6% of volume share in 2024, while Red Bull had 19.8%. The figures exclude on-premise volume, meaning drinks consumed at a bar or restaurant.

"Despite the fact that Celsius seems to be gaining traction with consumers with the better-for-you offering, it's not a significant barrier for Monster and Red Bull to catch up in terms of [research and development], in terms of marketing," said Morningstar analyst Dan Su. "I think they have the resources and experience to invest in the better-for-you offerings to keep pace with Celsius."

Write to Megan Graham at megan.graham@wsj.com

(END) Dow Jones Newswires

May 30, 2025 06:00 ET (10:00 GMT)

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