Filippo Falorni, Citi’s director and lead analyst for U.S. beverages, household products and personal care, sees opportunity in three beverage giants: Celsius Holdings, Monster Beverage and Coca-Cola.
All three earned Buy ratings, with Falorni pointing to fast-growing energy drinks, international expansion potential and resilient soft drink demand.
Key Takeaways
- Celsius expands the energy drink consumer base with Alani Nu, appealing to women and younger demographics.
- Monster holds a third of the U.S. market but has room to catch Red Bull internationally, backed by Coca-Cola’s distribution.
- Coca-Cola’s core soft drink business remains resilient, supported by pricing strategy and emerging market growth.
- Energy drinks are the fastest-growing U.S. beverage category, expanding at 10–15 per cent annually.
- Younger consumers are shifting caffeine habits from coffee to energy drinks, creating long-term demand tailwinds.
Read the full transcript below:
ANDREW: It’s time for Hot Picks, and we’re zeroing in on three stocks in the energy drink business. The first idea is Celsius, an American company that, according to our guest, has big opportunities to expand internationally. We’re joined by Filippo Falorni, director of U.S. beverages, household products and personal care, and lead analyst at Citi. Thank you very much, Filippo, for joining us. Remind us what Celsius is all about. How are its drinks different?
FILIPPO: Hi, Andy, thanks for having me on. Look, Celsius has been one of the most interesting growth stories in the consumer staples sector. The company really has two big brands: the Celsius brand within energy drinks, which has been on the market for several years now, and the recently acquired Alani Nu brand. Over the past three years, Alani Nu has expanded rapidly, targeting new entrants into the energy drink category, particularly younger consumers and, increasingly, women.
Historically, energy drinks skewed about 70-30 male-to-female. For Alani Nu, it’s the opposite: about 70–80 per cent female and 20–30 per cent male. That broadens the consumer base. The company is also increasing distribution. Celsius has long had a U.S. distribution partnership with Pepsi, and in late August the company announced a new distribution deal for the Alani Nu brand. That creates significant distribution opportunities into 2026.
ANDREW: And how have they managed to attract a new demographic?
FILIPPO: A lot of it comes down to marketing and product characteristics. Alani Nu’s marketing is female-forward. The taste profile of many of its innovations, along with frequent limited-time offerings, appeals directly to that demographic. That’s helped the brand bring in new consumers.
ANDREW: Monster is a longtime player. What’s the attraction of that stock, Filippo?
FILIPPO: Monster is a more established player in energy drinks. It controls just over one-third of the U.S. market and continues to grow. The category remains very healthy in the U.S., still expanding at double digits — the fastest growth in non-alcoholic beverages.
Monster also benefits from Coca-Cola’s distribution system. Internationally, there’s still a lot of room for growth. In the U.S., Monster has about a third of the market, Red Bull has another third, and Celsius has roughly 12–15 per cent. But internationally, Red Bull dominates with about 40 per cent market share compared with Monster’s 10–15 per cent. That gives Monster room to close the gap in many markets, especially with Coca-Cola’s backing and its powerful distribution network.
ANDREW: And speaking of Coke, you like them in part because of their energy drink exposure?
FILIPPO: Coke owns a 20 per cent stake in Monster, so it gets indirect exposure to energy drinks. But the majority of Coca-Cola’s business is in carbonated soft drinks, which have proven resilient. That category continues to grow steadily in the low-to-mid single digits, most recently in the three-to-five per cent range.
It’s a very stable business with consistent pricing. Coke has also executed a successful mix strategy — selling smaller cans and bottles at a higher price per ounce — which has boosted organic sales. Emerging markets are another growth driver, accounting for more than 40 per cent of sales. Per-capita consumption is still rising in many of those markets, creating further volume growth opportunities.
ANDREW: Back to the energy drink category. It’s still showing decent growth, Filippo, or are its days of rapid expansion over?
FILIPPO: In the U.S., it’s the fastest-growing beverage category right now, rising at a 10–15 per cent annual pace. There’s still plenty of runway. New consumers are entering the category, and younger consumers are shifting their caffeine intake from coffee to energy drinks as their primary source. That’s a long-term demographic tailwind. On top of that, the increased participation of female consumers has been very incremental to growth.
ANDREW: Thank you very much, Filippo. Always great hearing from you.
FILIPPO: Thanks for having me.
ANDREW: Filippo Falorni of Citi.
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This BNN Bloomberg summary and transcript of the Sept 22, 2025 interview with Filippo Falorni are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
