Key insights
- Celsius' stock may face short-term pressure as it loses shelf space at Costco, potentially impacting 11% of its sales. However, Costco's decision to launch a competing product validates Celsius' market position. Continued growth from other sales channels, representing 79% of revenue, could mitigate the negative impact, but the loss of a major retailer is a bearish signal.
The way I think of this, it is ofcourse bad that Celsius loses costco shelves. Currently 11% of sale source is Costco. But what's the magnitude?
The one encouraging thing is seeing Costco choosing to copy Celsius out of all new energy drinks. Celsius must be doing something right. And this right is still being done at 79% of sale sources.
Then if you look at numbers 11% or so from Costco might disappear. Drop to 4-5%? Bad yes but not with growth at 79% of sale sources. This growth is already being seen.