Celsius Holdings Inc. (CELH Quick QuoteCELH - Free Report) is entering 2026 with a clearer operating playbook than it had through much of 2025. Retail shelf resets, a tightened route-to-market, and a broader brand portfolio are converging at the same time.

The setup matters because the next several months should help investors separate temporary integration noise from the underlying demand picture. The company’s near-term execution cadence is increasingly tied to how well it converts shelf gains into sustainable velocities.

CELH Shelf Resets Could Set Up a Strong Summer Season

Retailers are expanding doors and shelf space for energy drinks, and resets are expected to finalize by the end of spring 2026. Management expects the largest gains in convenience, while also adding space in large-format retail. That combination sets up the portfolio for a stronger summer selling season if execution stays tight. 

The reset cycle also influences how investors should read the numbers. When doors and facings move quickly, early shipments can lead consumption, especially in convenience. Celsius is leaning into the reset window, but the market will likely focus on whether velocities build steadily once the new shelf footprint is fully in place.

Celsius PepsiCo Captaincy Is a Structural Shift

The company’s distribution structure in the United States and Canada has shifted meaningfully. Under updated agreements and an enhanced “captaincy” structure, PepsiCo serves as the primary distributor for CELSIUS, Alani Nu, and Rockstar, with coordinated sales, placement, and promotional priorities across the portfolio. 

That matters because it changes the “how” of growth. A single execution owner across the portfolio can improve route discipline, tighten promotional planning, and reduce friction during resets. PepsiCo (PEP Quick QuotePEP - Free Report) is not just a customer. It is central to the cadence of shelf placement and the consistency of in-market execution.

CELH Alani Nu Becomes a Second Growth Engine

Alani entered 2026 with strong traction. Management cited triple-digit growth in the first six to eight weeks of 2026 and rapid sell-outs on recent limited-time offerings. The early momentum is being reinforced by distribution expansion and a broader transition into PepsiCo’s direct-store-delivery network. 

Coverage is already high. U.S. all-commodity volume rose from roughly the high-80% range at the start of the fourth quarter of 2025 to more than 94% by Feb. 1, 2026. The brand is also slated for triple-digit space gains in 2026, which sets a high bar for execution as the footprint expands further into convenience.

Celsius Innovation Targets New Use Occasions

Innovation is being positioned as a tool to create incremental occasions rather than just add flavors. For 2026, the national launch of CELSIUS Fizz-Free targets consumers who avoid carbonation, while mocktails and adjacent dayparts are intended to broaden the category’s reach. 

Alani’s limited-time offering cadence is being treated as a repeatable demand lever. Recent launches have sold out quickly, and management is emphasizing SKU productivity and tighter promotions by channel under PepsiCo captaincy. The goal is to support core velocities while expanding distribution.

CELH The Hidden Risk Is Velocity Dilution

The risk with rapid door growth is that velocity can soften before it strengthens. Management acknowledged that distribution expansion may initially pressure velocities, especially as Alani enters more convenience doors with significant space gains expected in 2026. 

Timing is important. With spring 2026 shelf resets wrapping up ahead of the summer season, a clearer read on true run-rate velocities may not come until later in the second quarter of 2026. Until that visibility improves, quarterly shipment trends can be harder to interpret cleanly.

Celsius Costs and Tariffs Still Matter in 2026

Margins remain sensitive to external costs. Management’s 2026 margin recovery plan faces pressure from tariffs and higher aluminum costs, which could influence how quickly profitability improves even if volumes stay healthy. 

Management still sees a path to mid-50% gross margins over time, but not as a 2026 target. The nearer-term direction is gross margin expansion through 2026 toward low-50% levels in the back half, assuming integration benefits and internal offsets outpace cost headwinds.

CELH Integration Milestones That Could Reduce Noise

The fourth quarter of 2025 showed the tradeoff between growth and near-term noise. Gross margin declined to 47.4% as one-time integration and distribution transition costs weighed on results, alongside a lower-margin mix and tariff and aluminum headwinds. 

Management expects those one-time fourth-quarter effects to begin rolling off in the first quarter of 2026. It expects Alani’s cost structure to be aligned by the end of the first quarter and Rockstar’s by the end of the second quarter, supporting margin expansion through 2026.

Rockstar also adds presentation complexity. During the transition, a portion of fourth-quarter activity was recognized in other income, and revenue presentation is expected to normalize as the U.S. transitions fully to a finished-goods model in the first quarter of 2026, with Canada following in the first half.

Celsius International Expansion Starts With Spain

Celsius is also taking measured steps internationally. In March 2026, the company began launching the CELSIUS brand in Spain through an exclusive distribution partnership with Suntory Beverage & Food Spain, with products arriving in stores in March 2026. Celsius currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The move fits a partner-led approach to international growth and targets rising demand for zero-sugar, functional energy drinks. As Celsius builds its platform at home, this kind of selective expansion can diversify the growth narrative without overextending operational complexity. For context, Monster Beverage (MNST Quick QuoteMNST - Free Report) remains a major energy category benchmark that investors often use to frame durability and execution in global channels.