CELSIUS VS ALANI-NU
How Two Brands Found The Magic Formula To Success
Writen By Rob T.
Last Updated 04/27/2024
Writen By Rob T. | Last Updated 04/27/2024
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In the dynamic landscape of the energy drink industry, Celsius and AlaniNu, have emerged as dominant players, capturing substantial market shares despite the sector's notorious difficulty of entry. It’s one of the most challenging markets to penetrate, since most of the big players will either dwarf you with their marketing budgets or they’ll straight up buy you, if they feel like you have any potential of scaling.
Let’s look at Celsius, established in 2009 in Sweden, faced an uphill battle upon entering the US market, with initial struggles reflected in stagnant sales and overlooked products. However, what appeared to be a faltering brand soon transformed into an industry giant.
Fast forward to 2023, Celsius comes back with an impressive valuation of approximately 13.4 billion dollars and with the title as one of the fastest-growing brand in the energy drink sector.
” When you look at where Celsius is today, the opportunity was there. This company is actually a turnaround. Most beverage companies don’t get turned around. They wind up in the beverage grave." - John Fieldly, CEO Celsius
Celsius & AlaniNu, the two energy drinks in the health and wellness space that blew up with the help of the right social media strategy
How did Celsius come back stronger & better? They certainly didn't change anything with the content/ingredients of the drink. Aesthetically they made some changes, but more importantly their messaging changed.
Celsius Re-invented themselves and went from “just another energy drink” to “a Lifestyle Brand.” They positioned themselves as the “better-for-you” energy drink with the added vitamins and 0 sugar, plus it was coined a functional beverage, a drink with a purpose, boosts metabolism, burn more calories, increase mental focus (according to Celsius).
In addition, implemented a very effective social media strategy, with influencers plastering the drinks on every feed. So the drink, that was once collecting dust on retail shelves, blew up!
In 2022, PepsiCo recognized Celsius's potential, investing $550 million to further propel its growth and compete with industry giants like Monster and Red Bull. This partnership expanded Celsius's presence in retail outlets, cementing its status as a formidable player in the market.
It’s always hard to capture market share in an industry where the big players have an unlimited marketing budget. According to Celsius CEO John Fieldly, in an GQ interview, “Over 5,000 new brands come to the market each year in the beverage industry, 1% of those make it. It’s really unlikely for beverage companies to be successful.”
"Celsius offers more than that with our functional vitamins. And we’re really capitalizing on three of the fastest growing trends in all food and beverage. Everyone wants better for you, but they don’t want to sacrifice flavor."
The two founders Katay Hearn and Haydn Schneider built a small community of loyal followers and turned it into an empire
Would you consider launching your own energy drink if given the opportunity?
Well... Katy Hearn and Haydn Schneider did, and they nailed it!
With a substantial social media following already in place, particularly Katy's, who had been sharing her fitness journey from the start, the couple resonated strongly with female audiences nationwide.
Their brand skyrocketed shortly after its launch in 2018, with revenue soaring from approximately $68 million in 2020 to a staggering $228 million in 2021 - an incredible feat!
Although they followed a blueprint laid out by brands like Celsius, success in this industry is far from guaranteed.
Benefiting from a dedicated and supportive social media fan base, the couple experienced rapid growth fueled by trust and credibility.
Demand went through the roof, leading to early partnerships with major retailers such as The Vitamin Shoppe, Target, GNC, Walmart, and Kroger. Recognizing the brand's potential, these national and international retailers secured exclusive flavors for their respective stores.
John Fieldly, CEO Of Celsius Holdings took over when the company was valued at $280 million. Today it's value surpasses $13 billion, making int one of the fastest growing brands in the energy drink sector.
While Celsius was focusing on the "functional" benefits such as calorie burning, 0 sugar, and the "healthier-for-you" approach. AlaniNu's messaging emphasized on "trustworthy formulas."
When Katy first started coaching, she had a hard time recommending any brands to her client, because she didn’t want to co-sign for anything she’s not using herself.
So she saw a problem “lack of trustworthy supplements,” and she offered a solution AlaniNu “Trustworthy supplements with transparent ingredients.”
"“Showing up as your best self doesn’t come from a secret diet or magic plan. You have to choose your health and happiness each and every day, and Alani Nu exists to make people excited to do exactly that. You have to be the driving force in your journey to success. Haydn and I hope Alani Nu will help make that journey easier and more fun.”
Celsius Energy and AlaniNu Energy have masterfully displayed the power of social media marketing and how to position themselves in a fiercely competitive energy drink market. With strategic messaging tailored to resonate with their target audiences, both brands have effectively differentiated themselves from the crowd.
On the one hand you had a "dying" brand (Celsius) that was struggling to gain traction for almost a decade, and with some aesthetic changes, new messaging and the power of social media collaborations they made a powerful U-turn.
On the other hand, you had AlaniNu, with Katy as the face of the brand, sharing her fitness journey and establishing a huge base that connected her on an emotional level, and identified her as the brand.
But I also think timing was of the essence, and this is why I think that timing played a huge role in AlaniNu's approach:
Katy (AlaniNu) embodies the essence of transparency in her approach to social media marketing, which has deeply resonated with her niche audience.
In an era where consumers value authenticity and honesty, Katy's willingness to share her vulnerabilities has set her apart. By inviting her followers into her fitness journey, she has demonstrated a genuine commitment to her brand's values of inclusivity and empowerment.
Through candid posts and videos, Katy doesn't just showcase her successes but also acknowledges the challenges and setbacks along the way. This level of transparency not only humanizes her brand but also fosters a deeper connection with her audience, who appreciate her authenticity in an industry often saturated with filtered perfection.
Another brand that had a similar approach was 5% Nutrition with Rich Piana, who was the infamous founder, and face of 5% Nutrition. He was an individual without a filter, and with a strong "what you see is what you get" attitude.
