Celsius Adds New Flavors, New Distribution Print E-mail
By Vinny Cassano   
Sunday, 17 October 2010 00:00

Celsius Holdings, which has been on a slow uptrend since last month, announced last week that two new non-carbonated flavors of the calorie-burning, pre-exercise fitness beverage will soon be available on the market.

The long anticipated new choices will be 'Lemon Iced Tea' and 'Strawberry Kiwi,' of which Strawberry Kiwi has already been authorized for Celsius' largest club account, according to a press release issued last week.

One would think that it was only a matter of time before Celsius introduced an Iced Tea flavor to consumers - as Americans go crazy for their iced tea - and both of these selections should fit right into the refreshing new mold of healthy beverages, flavorful and functional. 

The commercial launch of the two new flavors conincides with a spurt of new distribution, with expansion into the military exchange market well underway and a new deal with Europa Sports that will introduce the product into health and fitness channels across the country.  The Europa deal could be key; it makes better sense that a customer would walk into their gym and buy a can of Celsius rather than having to stop at the 7-Eleven across the street on the way in.

{After a somewhat long period of silence from Steve Haley and the gang, which could have been the result of the changing of home operations to Boca Raton, Florida, I like what I've seen of late from Celsius Holdings.  The distribution growth and introduction of new flavors seems to have brought a renewed energy to Celsius that could provide a nice lead-in to the upcoming release of third quarter results.

Another round of solid results, like we saw in the second quarter, could ignite another uptrend in the share price, although maybe not to the scale of last year's run when the stock ran from a couple of pennies to over sixty cents (pre-split).  On the contrary, if earnings come in below expectations, any potential shorts could attempt to run this thing to below the one dollar mark. 

It's yet to be seen if the new flavors will be an addition to the Celsius stockpile or if two of the carbonated flavors will be phased out for the more popular non-carbonated drinks.  I'll be looking forward to giving them a try, although I still like the Cola as the top taster - as long as it's on ice.  Room temperature doesn't cut it.

Again, it's been somewhat of a silent summer for Celsius, but this company might be turning the corner right now, in a big way.  The stock looks like a great risk/reward buy right now, but keep in mind - we're not in the clear just yet; a sub-standard quarter will add to any downward pressure.  That said, I think the worst is behind Celsius Holdings; it's always a positive to open up an Iced Tea stand. 

Especially in America, where they love their Iced Tea.  So how about some Iced Tea that helps you burn calories at a faster rate, too?

Only time will tell if it catches on, but for now - let's stay focused on third quarter earnings.

Disclosure:  Long CELH.

 




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