Celsius Holdings, Inc. (CELH) Earnings Call Transcript & Summary

All right. Good morning, everyone. It's a pleasure to introduce our next speakers. We've got John Fieldly, CEO of Celsius Holdings and Jarrod Langhans, he's the CFO of Celsius. Celsius for many of you that know, it's a rapidly growing emerging brand in the energy drink category with North America sales up triple digits in Q1 and an existing -- an exciting pipeline of innovation and better-for-you beverages. So Celsius has a strong presence in the fitness channel and it's rapidly scaling its business across traditional retail, including the all-important convenience store channel. So with that, I'm going to take a seat and welcome you 2. Thanks for joining us today.

Thanks for having us.

Excited to kind of talk to you about everything going on. So with that, I guess I did want to talk about some of the recent trends that you are seeing in the energy gen category, it's really top of mind, and I'm thinking about in the context of the current inflationary environment, and really the pressure on the consumer. So curious to hear if you're seeing any changes in consumer demand for energy drinks, especially given that they're premium versus CSD?

Yes. I mean we've been talking a lot about that internally. Talking to a lot of our distributors as well. Actually, on Saturday, I was talking with Jerry Reda from Big Geyser, and 1 of the world-renowned distributors in the country. So I'm talking to him a lot. We're having the same discussions, like where do we see -- what are you seeing on the ground and talking to a lot of our sales team and distribution partners. And the feeling is -- the question is, no, we haven't seen an impact yet. And with the growth that we've had with Celsius, we continue to see increasing demand for the product. So that hasn't affected us. But then we talked about as we go forward, where do we see the energy consumer going? So 1 argument is if we had a newer recession, people are frequenting convenience stores more often. So maybe instead of going once every other week or once a week, you're maybe making a little bit more frequencies, but could increase our product and the energy sales. The other comments that we were getting as well as is the loyalty behind these -- the energy category. And if you really think and you look at Starbucks, you look at Dunkin' Donuts, and some of the major coffee players, every -- consumers are very loyal to their coffee brands and they're very loyal to their energy brands. Look at Monster, look at Red Bull, really strong loyalty behind those brands. And we're starting to see that now as we gain more brand awareness with Celsius. So, we're still at the price point wrap at $2 to $2.50, $2.65. At that point for those consumers that -- that would have to be -- to take that out of their daily lifestyle is potentially a lot lower on the purchasing list than what you're going to cut as you go forward. So we think we're in pretty good shape as it goes forward. Time will tell. But we offer a much better, healthier, better-for-you options. So if you're going to trade up -- trade over, trade over to Celsius.

Well, it's certainly amazing. I mean, your market share is now 4%, and it's counting, I guess.

Yes, it's counting. Yes. That's a major, major achievement. I know it sounds in general, a small number, but in the beverage category, energy, that is very difficult. Yes, it's really exciting for the team to be able to get to 4%. And just surpassed Rockstar as well on the latest data. So that's a nostalgic brand. It's been around for centuries. It's been around for a long time. I know a great brand. So it's -- Celsius is on a great trajectory where we're at.

And why do you think it's resonating? Maybe talk just a little bit about how the product is differentiated. And then I'd be curious, because I'm always trying to figure out where you're sourcing share from. Is it from some of the existing energy drink players? I think it's a combination. And then possibly bringing in new users to the category.

Yes. I mean if you -- the latest data, if you look at the category growth over the 4-week period of April, I think it was about $101 million of category growth, of which Celsius represented about $38 million of that, about 38%, give or take. Where we're seeing is we're really attracting -- and that's why we're getting additional shelf space is gaining -- we're bringing in a new consumer to the category. So you're Gen Z, your next generation of energy drink consumers. We're seeing them really align with the Celsius brand, the brand attributes, what we stand for. The fitness board, the Better For You, the functionality and the green tea, 7 essential vitamins as well. So we hit on a lot of those great -- there's really those health and wellness trends that are out there today. And when you look at where the growth is coming from, the other thing that's interesting is that the product resonates. It's inviting. They're about 50-50 male female, so they're bringing in a new female consumer to the category. And also, you're seeing -- historically, you see traditionally some consumers age out of energy. And maybe move to teas or coffee products. And what we're seeing is some of those consumers are staying in the category, which is great. So they're not migrating over to maybe CSD, they were also picking up a Celsius, because of those Better-for-you attributes that the brand offers. So it's a very diversified when you see it, you'll see older demographic purchasing Celsius. So we see it at Costco. And then you see it at the college campus as well. So pretty diverse, which is interesting. And talk about like usage occasions, when usage occasions with energy drinks. And historically, you haven't -- the usage occasion has not been for lunch when you're having an energy drink with lunch and a sandwich or so on. And what we're seeing a great opportunity is with our foodservice business, and we're seeing an opportunity at like these Acai bowl locations, these bold places and where consumers are buying products and buying Celsius at the same time. And that was a comment Jerry mentioned as well on Saturday, is in the convenience store chain. When you look at like Bang and Monster and even Red Bull, they see that as an appetite suppressant. So when people come into the convenience store, they are buying just Red Bull Bang or Monster. And these convenience stores were saying, when consumers are buying Celsius, they're buying something else, which is great for the basket ring. They're buying of water, they're buying a sandwich, they're buying a salad. So it's -- they're not only bringing new consumers, but incremental to their sales. So that's a great attribute to hear.

No, and that's key. And then so thinking about our top line growth and where a lot of that is going to be driven from. Is this still the big opportunity is it distribution gains? And maybe you could break that down for us in terms of channel. Is it further penetration? And I think you're pretty broadly distributed, but you still see an opportunity there in other channels.

Yes. I think a huge opportunity right now is optimizing our existing business. So that's number one. We can get better placements in our stores. We can get better execution, better cooler placement, because if it's cold, that's sold, we're seeing that big time. We need to get products cold. We need to get it upfront, and that's where Celsius does extremely well and competes the larger brands that are out there. And the other area that we really see is the optimization of our DSD network. So we're up to about 288 distributors today. We're still in the early phases of really activating those distributors. So we have over 70 key account team members that are working with our distributors. Our distribution management team continues to get built out across the country. We're bringing on new chains, new regional chains. I mean a lot of opportunities when you look at the business overall. But on a seismic level, with 70% of energy drink sales coming out of convenience, that is the biggest frontier for us on the largest top line revenue opportunities we have. And we just closed Circle K, 6,000 locations. Those are getting reset right now. Initial feedback has been really positive, and we're in about 3 divisions now, has been doing really well. And the success at 7-Eleven. We're now in over 8,000 locations. And many major chains now over across the country. So really optimizing those chains and...

Okay. Oh, yes, go ahead.

Can you just talk about elsewhere play next to Rockstar Bang, Monster, et cetera, versus outlets where you're not. You talked about bringing a different consumer, are you missing that consumer then when they go -- they don't go to the energy item, right? But that -- they're not looking for just talking about growth in each one, how do you compete today the ones that whether or not you want to move?

Well, what we see is you really need -- you need like a billboard brand. For instance, like Red Bull and Monster, you really want them to have really good presence, because that's -- everyone sees those brands, that's an energy. That's where the energy is. So if you look at a lot of locations, we want to be right next to Red Bull, right next to Monster, because everyone knows that's the energy area. It's like the signage designation. But what's interesting is the product does well outside of those areas as well, which I think is unique, like the Assai Bull places. There's a couple of chains Bolle down in South Florida that does really well with the product and a lot of other locations, which is not your traditional energy drink category where you would go and purchase energy drinks. And that's what's interesting about the product. It's versatile. You're seeing them...

Can you just maybe just talk about growth trends then at the ones that's not there versus where the next [indiscernible]? Can you differentiate each [indiscernible]?

Well, it's probably too early to tell at this point. We're not in a lot of foodservice. When you look at it, we're in a couple of small chains, really independent delis, those type of things. So that's an area we're working on. But we don't have a large-scale presence to get a true data set to provide you x amount of velocity per outlet, but it's a good advertising platform. We're doing volume. It's a profitable business for us. It's a great way for new consumers to engage with the brand and see us at those locations and pick us up and experience the product and then purchase it at other locations, if it's Target, if it's the 7-Eleven, CVS or so on. So too early to tell, but it is interesting that we're hearing that from multiple distributors that this product is broader than a traditional energy drink that they're seeing. And most of our distributors -- it's the same distributors. It's mainly the AB network and they're the ones that built Bang and built Monster as well. So they know how to build the energy category. So it's great to see that anecdotal information coming from them.

So could you quantify the percentage shelf space that you've secured for this year maybe versus last year?

Yes. The number of doors, I think we're up -- I think we had -- well, this year -- for this -- I guess from reset to reset, I think the numbers were about like 60,000, 68,000 doors we added. So it's really -- it's about a 50% increase in the number of doors that we expanded to on these resets that are taking place versus the prior year. So -- and it's going to be optimized, because all these stores that are coming on board are being serviced by DSD. So prior to that, they were service direct or through a wholesale network. So all the stores or new distribution coming on is serviced by DSD. And when that happens, we see a higher velocity rates right off the start with those new customers. And then not only when you add the 60,000 new doors or 50% expansion in doors, that doesn't account all the expansion we're getting in our existing accounts. So on the earnings call in Q1, I talked about Walmart. Walmart is a major opportunity for us. We had 3 flavors authorized last year. And quite frankly, we had a lot of out of stocks and inconsistencies at retail. So distributors didn't want to drop 3 flavors of Celsius off. There was a lot of challenges. But now we have upwards of 6 flavors on shelf, so a really good destination for the distributor to keep it filled. We also are gaining cold placements in a variety of their locations as well. So -- and then with the Murphy's oil we announced last year, and we're also in some other convenience store chains that they're now starting to expand into the company-owned stores. So I think that will be a great relationship. They do really well with energy drinks. So an initial feedback has been positive.

Great. And then can you talk to us a little bit about the price increase that you just implemented in April? I think you discussed this on your quarterly call, too, but maybe a little bit more color on where that's implemented is across your entire portfolio. I'm not sure if you quantified it, at all, but any early signs that you've seen from that sticking or how the consumer is responding to that?

Well, over the last 18 months, we've been doing a lot of promotional strategies and pricing elasticity testing. So we know there's opportunities to further increase the price of the product. We did take a formal frontline pricing up April 1. Now keep in mind, we have been taking pricing up. If you look at the 52-week scan data, you can see their average price at retail has come up. We've been working on optimizing the promotions, and timing of promotions and those strategies. But we did take frontline price April 1. We're not disclosing the amount, because we're rolling out this price increase in a multi-phased approach. And several of our key customers have not received the price increase at this time, but they will over the next several months. But we started to implement it through -- we have a 3-phase approach to roll this out. And we -- and that is really our goal is to get back to those mid-40% margins by Q4 of this year. So with the cost increases that we were receiving from raw material manufacturers and input costs, we had to make that frontline adjustment and doing the testing hasn't impacted the -- really the velocity of the product and consumer demand. I think there's further opportunity there that we're going to continue to evaluate.

Okay. And I know you discussed this in terms of the pricing being rolled out. And then I think you've got some of the international can stock by Q3. How big of an impact or drag on your margins do you see from some of this faster growth that you're experiencing, some of the lower-margin channels also? I'm just trying to think of all the different puts and takes that are going to allow you to kind of get back to those mid-40% gross margin?

Well, prior to -- when we first started bringing in the international cans, we stated, I think it was right around our Q2 call, that we calculated about a 6% margin impact due to the importation of the cans. Now that has evolved. We've gotten price increases from some of our vendors. Also, the Costco business has really taken off. And now we're in Sam's Club. So we -- and Q1 was our first few shipments to Sam's Club, and that seems to be going very well. We're really looking to see how the product is going to perform in Q2. So we're looking forward to see how that does. We do feel it's going to do very well in Sam's Club, but it's too early to tell. And that mix is going to affect our margins. But assuming the constant mix we've had in Q1 and rolling that forward with the price increase we've taken, we can get back to the mid-40s. The key is if that changes, that could affect some of our margins. Now it's too early to tell, because we do have strategies to optimize that and increase those margins, in regards to the way the product's reworked, some of the packaging that's required for that channel that we're looking to optimize. We really need to buy in of some of those key customers in order to do that. But that is a lower-margin business. But ideally, with the biggest opportunity in convenience and your highest margin product, which is the single serve, that should balance out here as we gain more scale and convenience in the broader category. So -- because I believe the club channel, I think the Monster is right around 10% or 15% of their overall business in the U.S., I was told, but I'm not 100% sure.

They don't always share everything. But yes, the right? And so then to be clear, Q3 there's going to be headwinds from the international can supply through Q3, right, as you continue to use this. And then by Q4, is that where you're expecting to kind of source much more domestically?

Yes. We expect -- we're sitting on a good amount of imported cans just due to the timing. I mean everyone -- everyone saw and everyone's talked about the importing and the clogs at the ports and everything. So we are cycling these through. Actually, our last purchase order just is arriving this month. So we won't be importing any more cans, but now we have to use them up. The good news is we did purchase a lot of U.S. cans on the spot rate when the Sulzer business was having some challenges there, we turned some cans to the industry. So with that, that allowed us to really solidify some really good relationships. So going forward, we feel confident we can source U.S. cans due to the relationships we've built with the U.S. can manufacturers on a go-forward basis. There's a lot of variables in there. When you look at aluminum and aluminum alloy and different things like that, but Obviously, it's much more advantageous to get U.S. sourced cans versus importing international cans.

And you'll be able to leverage some of those new can suppliers in the U.S.?

Yes, we will. Yes. I think we solidified some really good relationships, taking off some additional capacity that was available at the time.

All right. So let's move on to some of the innovation in the pipeline that you have this year. How would you characterize that, what you've got lined up for this year versus even last year? I mean is it stepped up innovation? Is this your most exciting year ever? I know you recently launched Mango Passion Fruit flavor in Q1. So just a little bit more detail on that. Any other?

Well, it's always going to be -- it's always an exciting year, right? It's always -- what's next is the best. So we got a lot of great stuff in the works, but Mango Passion fruit, that was a flavor we launched with 7-Eleven in January. It's probably 1 of the best launches the company has had in regards to sales velocity. It was great execution by the team. The Vibe line is something that's really great for us. We expanded into a Vibe line. So it's a big summer program this year is what your Vibe. We have an essential Vibe store going coast-to-coast really engaging consumers into music festivals and a variety of different activations throughout the country. We see this Vibe line allowing the brand to go a little bit broader into traditional energy. And we're seeing that resonate. If you look at some of the SKU hierarchy in the convenience channel, the Vibe line is resonating with that traditional energy drink consumer. Anecdotally, it's looking. If you look at our Peach Vibe or Tropical Vibe, and then we have a new Vibe we just launched. If you saw us on Instagram and several retailers is our Arctic Vibe. So it's bringing a frozen summer Vibe of tropical oasis to consumers, and it creates this emotional experience. Great packaging. We do have some products here. It didn't show up. I think it's in another building, so it's on its way or someone tried to drink it, I think whether be out here, but I think we have some Arctic Vibe, some of our new flavors. We also have a strawberry lemonade that we were told is, right, anyone that tries it. It's 1 of the most refreshing energy drinks that anyone has ever had, and that's a great success too. So we're big on innovation, fruit forward combinations. And the team has done just an amazing job. Strawberry Lemonade has been -- is a great hit. This Arctic Vibe is a frozen berry. It tastes really refreshing. And then the Mango Passion Fruit is another hot trend out there. So try to always stay, not so bad. Oh great, great.

And is that also allowing you to secure additional space, as you broaden out that portfolio with flavors. Is it allowing you to...

It is. We're gaining incremental -- and that was the strategy with the Vibe line as well. We're able to separate the line into really 2 lines to allow our sales team members to sell in 2 flavors at a time. And now with the velocity that we're seeing in the category, we're gaining -- we want more shelf space. Now we're -- we just hired several new individuals. One is analysts and trends and really consumer insights as well. And when you look at the velocity on some of these brands, what they're turning on a per SKU basis, Celsius out turns them on dollars and velocity. So it makes -- we want more shelf space. They want to make more money. So those are the stories that we're creating with our key accounts team and distributor management team. So I think we're in a good place. So we were in more shelf space for sure.

All right. Sounds good. And then as you think about your supply chain, I know you believe you've transitioned to 6 orbit-based warehouse model. Can you talk about some of the benefits you're seeing from that model? And has it helped you optimize your inventory and then your service levels? I believe those service levels are quite high. Any more color on that?

Opportunity. We have lots of opportunity to optimize inventory, but we've been keeping a higher level with the supply chain issues we've seen. And with all the growth we've had, we want to keep that the fill rate up where it is. So I think there's definitely opportunity to further optimize it. So we have seen a little bit of increases in warehousing. At the same time, we're benefiting with lower freight, because of the 6-orbit model and because of the growth we've seen. So I think as we get through to the end of the year and hopefully, we work into next year, we'll see kind of the supply chain get a little bit better. And as we get more comfort with the supply chain, we'll be able to pull back on inventory. But right now, we think about 45% of our inventory is not finished goods. So kind of a 60-40 split. And we want to make sure that we've got the product, so that we can sell it into the customer base. So we're kind of intentionally keeping the margins a little tight, just so that we're servicing the customer and not slowing down the growth that we have and the opportunity that we have.

And our service levels were 97% in the quarter, which was phenomenal. So -- and then sitting on -- and we're sitting on somewhat large raw materials, bulk of those -- half of those are -- probably more than half are cans right now. And then we are sitting on some flavors and some additional raw materials, which in this environment, what you hear what's happening now at ports and some of the -- over in Asia, I think we're in a really good position. We're in a good cash position. So you're hearing some concerns about raw material shortages again in the industry.

So you secured a lot of that granted maybe elevated costs, but you have enough -- you can work through that in the next quarter or 2 on all of this. Is that the...

Yes. I think that's the strategy right now is by the end of Q3. I think we're going to stay somewhat a little long on some raw material levels, just due to the challenges that we have in the environment right now. So we're going to keep some elevated raw materials on hand, which will increase the warehousing. But it's -- running out of stock at this point could be more detrimental to the business than keeping additional warehousing costs on the books at this time. So that's the strategy. It's a unique environment that we're heading into again. But I think we're in a good position. We've got our flavors, raw materials and great relationships with our co-packers, for up to 13 co-packers now. And Jarrod mentioned the 6-orbits, but as well scale, we'll continue to build out those orbits as well. That will add more efficiencies as well.

And is that plan still for this year? Or is that a '23?

'23. We'll probably finish this year with 6 or 7. We'll probably add 1 more additional warehouse. And then as well into '23, based on volumes, we'll continue to build those out and create, as Jarrod mentioned, these orbits and the goal of an orbit is to keep all your sourcing. So we try to reduce the miles on cases, your raw material suppliers close, you want your co-packer close and your distribution close and your customers close. And that's where you're going to gain really good efficiencies. And by no means are we optimized in that area. I think we're getting better each and every day.

Okay. So runway there. And then as I think about your channels, certainly C-store channels important, fitness, but also e-com for you. If I'm not mistaken, I think you have an 18% share on Amazon. So talk to us a little bit about the opportunity that you see online. How much higher that potentially could go or how you think your channels might shift?

Yes. I mean it's an omnichannel world now. So I think every CPG company needs to -- you have to be online and you have to be where consumers are, where they want it and how they want it. And if you look at in retail brick-and-mortar, you look at GoPuff, you look at Instacart, you look at Amazon, Target.com, Walmart.com and the people want it when they want it and you have to be available. So we've embraced that from the beginning. We've been on Amazon over 10 years. We actually turned off our website in 2013 and backed into Amazon, and really embrace them. And that's -- it's been a success. I mean if you can't beat them, join them, and that was kind of the strategy there. And we further embraced that. We support all of our retail customers. We have a digital retail distribution team that is working closely with our retailers on their -- either home deliveries, platforms, project, we call it project pickup for grocery pickup, all those types of different platforms there. So I think it's really important. I think it's going to be a major part of the business or it's a major part today. It's going to be a major part tomorrow. And I think it just continues to get bigger as we continue to want more convenience in our life.

I would agree. We're all getting late, at least I see from my kids and in what they order and have delivered all the time.

So if you use Instacart, we do extremely well. It's -- the number of orders that have a Celsius in it is pretty astonishing and it's a great platform, and that's it. You look at...

Well, I want to kind of go back to something where we started the conversation, because I do get a lot of questions about certainly inflationary environment, the pressures on the consumer, gas prices. Are you seeing that impact this category at all? I know historically, when I've looked back, you see some inverse correlation, but I don't think it's dramatic. So I'm just curious what your seen so far as prices have gone up at the pump? Is there any concerns for the category or your business as you look out if gas prices remain elevated?

Yes. I mean in general, just the overall macro -- micro environment, I think it's -- there's a lot of concerns. I mean, freight, I mean -- all around the whole supply chain, labor, employee costs, I mean everything goes up when gas goes up. So it's something we're very concerned about how the consumer is affected. I think they're going to start to move away from some of those discretionary purchases first and kind of like I was saying, we have a very loyal consumer and like with coffee and Starbucks, I mean to cut that out of your daily lifestyle is -- that's a really big cut and you likely will cut some other areas, before you cut that out of your daily, because that is your treat, that is your daily routine. So I think we're in good shape as that goes. Our exposure to convenience channel continues to get bigger each and every day. So I think we have a lot to learn there as well. But initially, have not -- we haven't experienced anything. If anything, we've been growing at a faster rate. So...

Okay. And then in terms of your marketing strategy, I know you said you plan to invest ahead of your revenue growth. So maybe just touch on that for us in terms of any activation that you have, especially over the summer and how much, I can't remember if you quantified how much you expect to invest.

Well, we haven't quantified the exact amount, but we are continuing to invest in programs. One area we're moving into is back into events, back into street teams, back into our Live Fit Tour. That is a higher cost of -- cost per can in hand, cost of investment, but it is key to brand building in new markets. We've expanded from a 5-drill deep strategy to a 16. So now we're targeting and building out our teams in 16 markets. So we are investing ahead of revenue in several of these markets. But these markets are key to really continue to scale and grow in North America. On our sales team side, we continue to build out our distribution management team. And really, if you look at the overall business in general, we're investing each and every day and transforming each department for scale. Jarrod has been with us now on our fourth week, building out his team. We now have internal audit department underneath. I mean we've -- we continue to build and scale each and every day, and that's what we're going to continue to do, but we're going to do a balanced approach. We're not -- we're really focused on driving profitable growth. We said that from the beginning. So yes, we're investing ahead of revenue, but we're not sacrificing it. If you look at the quarter, we put up. And you look at last year, we're really focused on driving profitable growth. So we're not going to -- we're not changing strategies that we're going to start running maybe Super Bowl ads yet or anything like that. So -- maybe, maybe.

Given your success, and I think about mentioned 4 share, which is a very large attractive category. But you also may be attracting more competition, to some extent, given your success in this new emerging better-for-you category within energy drinks. So where I'm getting at is, we're seeing more entrants, whether it's some thinking of Ghost energy, onlining new, maybe I'd put True North, C4. How do you see that playing out in terms of the competitive landscape? And how big of a risk do you see for your business?

I mean we were hunting and now we're being hunted, which is like a different type of -- we are like in the middle ground now, right? And it's quite interesting. So I mean the energy category has great margins, great growth in the category, 1 of the best categories in beverage. There's always been new entrants each and every day. I mean that's -- there's a lot of opportunity, a lot of sales to grab, a lot of share opportunities. But there is new entrances coming in, and the category grows. So I mean you're looking -- category on a conservative level, or what if it grows 6% over the next 12 years, the category doubles, if you do the rule of 72 there. So it's -- there's a lot of opportunity. I think the category gets broader. So you're going to have -- we kind of talked at the Beverage Forum as well in regards to category subsets that are out there. You're starting to see that in the way these larger brands are segmenting the energy category, which allows room for these smaller brands, and it also protects their space in the traditional coolers. But it -- if more consumers come into the category, there's a great place for them. There's enough room for all of us, I think.

And thinking about it maybe again, they can help to expand the category further.

Yes. New consumers in, which could be attractive, because they come in through 1 of those other beverages and our brands, and then they migrate into our portfolio. So could be good. It's good for the category.

Right. Now we've covered a lot today, and I think we have to wrap some of this upside. I just maybe want to end with -- I mean there's so much excitement and your business has been growing tremendously. But as you sit here today, what are you most excited about? Or where do you see maybe the biggest opportunity for your business?

It's -- I talked to all the team members. We have Marcus here as well, our General Counsel, and it's talked to all of them. There's diamonds to mine everywhere. It's about maintaining focus and executing and -- the convenience channel is a massive opportunity, but most importantly, the existing business and our distribution network. Brands are built with distribution partners, and that is extremely critical. So 1 thing the company is really focused on is building and optimizing our distribution network, and that's what's going to take Celsius that much farther and really be a major player. And without our distribution partners, the Celsius will never be what it can be. So that's the biggest opportunity we have, our key accounts team. I always -- a town hall meetings, each and every 1 of us take that next step forward together, and that's really critical. And -- but the 3 areas, it's convenience and how big can Celsius be, right? So that's the question. So -- and is -- how big of a brand can it be in the energy category. We're #2 on Amazon. Extremely well at Costco, you look at drug channel, and we're only in CVS, you look at grocery, lots of opportunities. We're an 18 share on Amazon. So we're 4 today, so we're somewhere between 4% and 18%, I guess. And we're excited is that fall in, and that's what gets us really excited. And we're attracting a much broader consumer than the traditional energy drink consumer. And we're resonating with the next generation, which I think is extremely critical for a long-lastingevity. And when you see the loyalty in the energy category, it lasts, and that's what we're seeing with Celsius.

Sounds great. Well, thank you so much for your time. Appreciate it.

Thank you. Excellent. Thanks, everyone.