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U.S. retail energy drink sales fell 1.1% year-over-year in the four-week period tracked by Nielsen through August 10. Celsius Holdings (NASDAQ: CELH) recorded the strongest growth rate of +8.8% year-on-year, although this mark slowed down compared to sales growth of +12.3% for the four weeks to July 27. Celsius (CELH) recorded a 16.6% increase in volume, offset by a 7.8% decrease in price/mix assortment. Notably, Celsius (CELH) had a 9.6% market share in energy drinks in the USA.
Meanwhile, Bang sales rose 6.0% in the four-week period. As a reminder, Monster Beverage (NASDAQ: MNST) acquired Bang Energy from Vital Pharmaceuticals for $362 million last year. Red Bull’s sales increased 1.8% during the four-week observation period, while Monster Beverage (formerly Bang) sales decreased 3.5%. Demand for energy drinks made from coffee and tea decreased during the four-week period.
Following the Nielsen release, Morgan Stanley reiterated its Equal Weight rating on Celsius Holdings (CELH). Analyst Eric Serotta said the firm does not see a catalyst for Celsius (CELH) until scanner data trends accelerate again. “We continue to see a path for CELH to achieve mid-teens share in the U.S. energy category over time (with potential timeline being pushed back), but also see risk that category growth remains weak for several quarters and that CELH’s market share continues to stagnate amid increasing competition,” Serotta warned.
Celsius Holdings (CELH) shares fell 4.40% in trading on Tuesday morning, while Monster Beverage (MNST) slipped 0.35%.
