As energy drink giant Celsius saw a ‘mega-trend’ for the active lifestyle supplement, its CEO raised concerns about worsening inflation and the pass-through of price increases on consumers during “Mornings with Maria” on Tuesday.
“Unfortunately, we see cost increases when we talk about labor, gas, transportation, input costs, raw material costs,” said John Fieldly, president and CEO of Celsius Holdings, to Maria Bartiromo of FOX Business. “We are seeing the costs go up, so we had to pass on some of that.”
“We’re worried about where we’re going with the potential recession that we’re talking about and seeing things play out with interest rates,” he continued.
Fieldly’s comments come just after Celsius celebrated its first-quarter 2022 revenue up 167% from last year, earning more than $133 million.
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Despite the success, the Celsius CEO warned that it was not the only energy drink brand feeling the pressure of inflation.
“The monster took the prize [increases] earlier. It will be effective in September,” Fieldly noted. “And we’re also hearing rumors that Red Bull is taking the award as well.”
But Celsius, which contains no sugar, no aspartame and no high-fructose corn syrup, remains confident its “loyal” customer base will maintain strong sales, according to its CEO.
“Celsius is a premium product. Our price is within reach of the consumer,” Fieldly explained. “We’re part of a daily lifestyle, a daily routine. It’s part of your growth in health and well-being. So we think we’re in a pretty good place.”
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Fieldly said he saw health and wellness become a priority for Americans after the height of the pandemic.
“As we move forward and consumers fall back,” the CEO said, “we believe the overall energy category is more of a commodity.”
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