Energy drink giant ‘concerned’ recession risks could impact ‘loyal’ customers: Celsius CEO
Celsius CEO says company has passed on labor, fuel, transportation, other price increases to consumers
Celsius ‘concerned’ about potential recession, price hike risks: CEO
Celsius Holdings Chairman and CEO John Fieldly says labor, diesel and raw material costs have increased production costs of the energy drink.
While energy drink giant Celsius has seen a "mega-trend" for the active lifestyle supplement, its CEO raised concerns about worsening inflation and passing on price increases to consumers on "Mornings with Maria" Tuesday.
"Unfortunately, we're seeing costs increase when we talk about labor, we talk about gas, transportation, input costs, raw material costs," Celsius Holdings Chairman and CEO John Fieldly told FOX Business’ Maria Bartiromo. "We're seeing costs go up, so we did have to pass some of those through."
"We are concerned about where we're headed with the potential recession coming that we're talking about and seeing things happen with interest rates," he continued.
Fieldly’s comments come just after Celsius celebrated its 2022 first-quarter revenue being up 167% from last year, earning more than $133 million.
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Despite the success, Celsius’ CEO cautioned it’s not the only energy drink brand feeling pressure from inflation.
Celsius Holdings Chairman and CEO John Fieldly warns a "potential recession" could impact product prices and consumer behavior on "Mornings with Maria" Tuesday, June 21, 2022. (Getty Images)
"Monster took price [increases] earlier. It's going to be effective in September," Fieldly noted. "And we're also hearing rumors Red Bull is taking price as well."
But Celsius, which contains no sugar, no aspartame and no high fructose corn syrup, remained confident its "loyal" customer base will keep sales strong, according to its CEO.
"Celsius is a premium product. We're priced in reach of the consumer," Fieldly explained. "We are part of a daily lifestyle, a daily routine. It's part of your health and wellness growth. So we feel we're in a pretty good position."
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Celsius exceeds revenue expectations with active lifestyle ‘megatrend’: CEO
Celsius Holdings Chairman and CEO John Fieldly says the energy drink giant has seen ‘tremendous’ growth coming out of the pandemic.
Fieldly expressed he’s seen health and wellness become a priority for Americans following the height of the pandemic.
"As we go forward and consumers pull back," the chairman and CEO said, "we think the overall energy category has been more of a staple product."