PepsiCo’s $585 Million Bet And Elliott’s $4 Billion Stake: Is A Reboot Coming?

PepsiCo is stirring the energy drink market with a $585 million investment to increase its stake in Celsius Holdings to 11%, while also transferring the U.S. and Canadian operations of Rockstar Energy to Celsius. This strategic reshuffling, paired with PepsiCo’s recent productivity drive and renewed distribution focus, signals a tactical repositioning in a segment long dominated by Red Bull and Monster. Celsius will now take the lead in managing PepsiCo’s energy drink strategy in North America, overseeing brands like Celsius, Alani Nu, and Rockstar. Meanwhile, PepsiCo retains Rockstar’s international rights and continues to handle Celsius’s North American distribution. The timing of this move is critical—just as activist investor Elliott Investment Management has taken a $4 billion stake in PepsiCo, calling the company a “historic” turnaround opportunity. The synergies from this revamped energy drink strategy could be central to any reshaping of Pepsi’s growth narrative.