New York, June 4, 2026, 14:02 (EDT)
- Celsius shares dropped over 6% during Thursday afternoon trading as Texas launched an investigation into the company’s Alani Nu energy-drink marketing.
- The inquiry comes as Celsius works to steady its main brand and build out Alani Nu and Rockstar with help from PepsiCo’s system.
- Management told investors this week to expect Celsius-brand stability in the coming months, but new legal and consumer-safety questions are now weighing on the outlook.
Celsius Holdings shares fell Thursday after Texas Attorney General Ken Paxton said he’s investigating whether the energy drink company misled buyers on the safety of Alani Nu drinks for kids and teens.
Shares were off 6.8% at $27.98 by 2:00 p.m. EDT, trading close to a 52-week low. More than 11 million shares had changed hands. The stock opened at $30.16 after closing at $30.01 on Wednesday.
Alani Nu isn’t a minor brand for Celsius, but key to the push for a three-brand energy drink group with Celsius and Rockstar. Investors are watching to see if PepsiCo’s distribution can help the full lineup deliver steadier U.S. growth.
Paxton’s office said it is looking into Celsius and Alani for possible violations of the Texas Deceptive Trade Practices Act, which targets misleading sales. According to the office, every 12-ounce Alani Nu can has 200 milligrams of caffeine. The office raised concerns about whether the packaging and branding target younger people.
Texas made its announcement after a case in South Texas related to the reported death of a 17-year-old who allegedly drank Alani Nu. The area distributor says it isn’t responsible and wants the case thrown out. Celsius wasn’t named as a defendant. Celsius says it takes product safety seriously and doesn’t market or give samples to those under 18.
Celsius had more on its plate than the legal news. The company filed investor materials for the Deutsche Bank Global Consumer Conference two days before, reporting first-quarter revenue of $782.6 million, a 138% jump from last year. Growth came from Alani Nu and Rockstar buys. Portfolio share hit 20.9% of U.S. tracked energy-drink sales, according to the filing.
Chief Executive John Fieldly told investors this week that “one in five energy drinks are sold through Celsius Holdings” and said the company just wrapped up its first full quarter managing its brands with PepsiCo. Fieldly called it “exciting times” for the company, according to a conference transcript. StockAnalysis
Celsius is still resetting its growth, Fieldly said. The brand should “see some stability over the next several months” before it picks up growth again, according to Fieldly. Retailers have been meeting with the company sooner to talk portfolio planning. StockAnalysis
Alani’s distribution grew and the brand kept gaining, CFO Jarrod Langhans said. Dollar velocity, which tracks sales per store and accounts for distribution, rose from January to April. Langhans said Alani moved into the “low 90s” in ACV, a retail-weighted measure for store reach. StockAnalysis
PepsiCo is at the heart of the story. Last year, Reuters said PepsiCo picked up $585 million in Celsius preferred stock, boosting its stake to roughly 11%. Alani Nu is also set to use PepsiCo distribution in the U.S. and Canada, according to the report.
Energy drinks is a busy space. Monster Beverage was flat to up in the afternoon, while PepsiCo fell. Celsius dropped more, which looked like a company-specific issue, not a sector move.
Investors face risk if the Texas investigation grows, forces label or marketing updates, or makes retailers slow to back Celsius while it’s working through a tricky portfolio shift. Even if there’s no enforcement step, the probe could mean Celsius won’t see much market credit from Alani’s growth until it proves shelf space can keep climbing with no more legal or reputational hits.
Celsius management says most integration work is on track. The company’s investor deck shows Alani integration is done, with about $50 million in synergies achieved. Rockstar, meanwhile, is still set to finish integration in the first half of 2026.
