Issue #113

From a multi-brand powerhouse to a clean-label disruptor, see why Celsius and Zevia are hitting critical inflection points before the summer peak.

The beverage revolution isn't being won by the sugary giants of the past or the flashiest marketing stunts—it’s being decided in the functional aisles and health-conscious refrigerators where performance meets purity. As consumers pivot from empty calories to beverages that actually do something for them, two segments matter more than anything else: metabolic-boosting energy that powers an active lifestyle and clean-label hydration that removes the toxins from our daily habits.

This is where the soda conversation shifts from "guilty pleasure" to "functional fuel"—and where the most disruptive, high-velocity winners are emerging for the Summer 2026 season.

👉 One company has evolved into a multi-brand powerhouse, becoming the high-performance engine for the fitness-focused and the "strategic energy captain" for the world’s largest distribution networks.

👉 The other is the "radically real" disruptor, stripping away the chemicals to provide a plant-based, zero-sugar alternative that is rapidly taking over the world’s largest warehouse clubs.

👉 Both are hitting critical inflection points, leveraging massive new celebrity partnerships and unprecedented shelf-space gains just as the peak consumption season begins.

In this edition, we break down the high-octane leader and the clean-label challenger powering the new beverage economy—and why these two stocks are positioned to sizzle as the temperature rises.

Zevia PBC (NYSE: ZVIA)

As we gear up for a health-conscious Summer 2026, our second beverage stock to watch is Zevia PBC (NYSE: ZVIA). While Celsius captures the high-energy fitness crowd, Zevia is carving out a massive niche as the "radically real" alternative in the multi-billion dollar soda market.

Business Model and Revenue Streams 📦

Zevia is a high-growth beverage company and a certified B Corporation focused on addressing global health challenges by removing sugar from the soda aisle. Their business model is built on "clean label" transparency, using only a handful of plant-based ingredients and zero artificial sweeteners. The company operates through two primary channels:

• Retail and Wholesale: This is Zevia's bread and butter. Their products are available in over 39,000 locations, ranging from grocery giants like Walmart and Target to warehouse clubs like Costco. Zevia earns revenue by selling its diverse portfolio of sodas, energy drinks, and mixers to these retailers.
• Direct-to-Consumer (DTC) and E-commerce: Zevia maintains a significant presence on platforms like Amazon, where it consistently ranks as a top-selling soda brand. This high-margin channel allows them to capture loyal "bulk buyers" who prefer home delivery.

Zevia’s business model is currently being reshaped by a "Productivity Initiative" aimed at slashing logistics and warehousing costs. While the company is sensitive to the price of aluminum—exacerbated by 2026 tariff policies—its asset-light model (using third-party manufacturers) allows it to remain agile. The company is also streamlining its portfolio, recently announcing the discontinuation of its tea line to focus strictly on its high-velocity soda and energy segments for the summer peak.

Recent Performance and Corporate Developments 📈

Zevia recently released its full-year 2025 results and early 2026 outlook, signaling a "pivotal transformation" from a high-burn startup to a sustainable business.

FY 2025 Financial Highlights: 💰

• Annual Revenue: Net sales for 2025 grew to $161.3 million, a 4% increase year-over-year, driven largely by expanded shelf space at Walmart.
• Shrinking Losses: The company more than halved its net loss, dropping from $23.8 million in 2024 to $11.2 million in 2025.
• Profitability Milestone: In Q4 2025, Zevia achieved a massive internal goal by reaching break-even Adjusted EBITDA (roughly $50,000), a significant improvement from the nearly $4 million loss in the same quarter the prior year.

Strategic Initiatives and Mergers: 🤝

The biggest buzz surrounding Zevia heading into Summer 2026 is its new partnership with Grammy-winning artist Cardi B. Announced in March 2026, Cardi B has joined as a shareholder and brand ambassador. This multi-year collaboration includes Zevia sponsoring her "Little Miss Drama" tour and a massive "Summer of Real" marketing campaign dropping in June. Additionally, Zevia launched a national Costco program in January 2026, which is expected to provide a major volume boost in the first half of the year.

Profitability and Fair Value 🎯

Zevia is on the verge of full-year profitability, with management guiding for a return to positive Adjusted EBITDA in 2026. The company’s path to growth is focused on Scaling through Club Channels (like the new Costco deal) and Marketing ROI (leveraging Cardi B's 160M+ social following to lower customer acquisition costs).

In terms of fair value, the stock has been trading near its 52-week lows (around $1.20 - $1.30), which has created a massive valuation gap according to some models. With a price-to-sales ratio under 0.6x, Zevia is trading at a steep discount compared to its peers in the "better-for-you" beverage space. While conservative models place its intrinsic value near $1.76, the aggressive growth forecast for 2026 suggests significant room for a "re-rating" by the market.

Analyst Estimates and Ratings 📊

• Consensus Rating: The current consensus among analysts is a "Buy". Despite some price target trims due to conservative 2026 revenue guidance, the overall sentiment remains positive regarding the company's turnaround.
• Price Targets: Wall Street is highly optimistic on the upside. The average 12-month price target is approximately $4.43, with firms like Telsey Advisory Group maintaining a target as high as $5.00. This implies a potential upside of over 250% from recent trading levels.
• Key Support: Analysts from Craig-Hallum recently initiated coverage with a "Buy" rating, citing the Costco expansion as a "game-changer" for the brand's visibility and volume.

Investor-Focused Takeaway: Is ZVIA Right for Your Portfolio?

Zevia is a classic "turnaround" play. The company has spent the last two years fixing its supply chain and is now ready to play offense with a world-class celebrity partnership and prime placement in the world's largest warehouse club.

What to Watch in the Near Term: 📈

• The "Cardi B Effect": Watch for a spike in brand mentions and social media engagement in Q2, which should lead to higher "velocity" (sales per store).
• Costco Performance: The success of the national Costco rollout is vital. If Zevia can prove high turnover in the club channel, more retail wins will follow.
• Aluminum Tariffs: Keep an eye on management's ability to offset the projected $5 million in incremental aluminum costs through their productivity savings.

Recommendation:

Zevia (ZVIA) is a high-reward speculative pick for investors who believe in the "Better-for-You" movement. With the stock priced at a fraction of its sales and a major celebrity-backed summer campaign on the horizon, the risk-to-reward profile is currently very compelling.

Celsius Holdings (NASDAQ: CELH)

As we approach the summer of 2026, the beverage sector is heating up, and Celsius Holdings (NASDAQ: CELH) has positioned itself as a primary contender for growth. After a transformative 2025 defined by massive acquisitions and a deepened partnership with PepsiCo, the company enters the high-demand summer season as a scaled, multi-brand powerhouse.

Business Model and Revenue Streams 📦

Celsius Holdings operates a high-growth "lifestyle" fitness drink model, distinguishing itself from traditional energy drinks by marketing "clinically proven" thermogenic properties that accelerate metabolism and burn body fat. The business has evolved from a single-brand entity into a diversified beverage platform through its recent strategic moves.

• Core Product Sales: The primary revenue driver remains the CELSIUS® brand, which accounts for over 50% of total revenue. Sales are generated through a variety of channels, including grocery, convenience stores (C-stores), fitness clubs, and a massive presence on Amazon.
  ​Brand Portfolio Expansion: Following the 2025 acquisitions of Alani Nu and Rockstar Energy, Celsius now captures a broader demographic. Alani Nu provides a significant foothold in the female-focused wellness segment, while Rockstar offers a more traditional value-based energy play.
• Strategic Distribution: The company utilizes a Direct-Store Delivery (DSD) model anchored by its partnership with PepsiCo. This allows Celsius to leverage PepsiCo’s massive logistics network to secure premium shelf space and "cooler" presence, which is vital for impulse buys during the summer.

Macroeconomic Impact:

Celsius is currently navigating a dual-edged sword. While inflation has stabilized, the company is sensitive to shifts in consumer discretionary spending. However, its "better-for-you" positioning acts as a defensive buffer; health-conscious consumers often prioritize functional beverages even during belt-tightening. The most significant macro impact currently stems from supply chain optimizations and the final phase of integration costs for its new brands, which management expects to normalize by mid-2026.

Recent Performance and Corporate Developments 📈

The company reported record-breaking results for the full year 2025, signaling that its aggressive expansion strategy is paying off.

Q4 2025 and FY 2025 Financial Highlights: 💰

• Record Revenue: Full-year 2025 revenue reached $2.5 billion, a staggering 85.5% increase year-over-year. Q4 alone brought in $721.6 million, exceeding analyst forecasts by nearly 13%.
  ​Market Share Milestone: The combined portfolio of Celsius, Alani Nu, and Rockstar now represents approximately 20% of the U.S. energy market, effectively making Celsius the "strategic energy captain" for the PepsiCo system.
• Gross Margin: Despite "noisy" integration costs, the full-year gross margin held steady at 50.4%.

Strategic Initiatives and Mergers: 🤝

The defining news of the past year was the $1.8 billion acquisition of Alani Nu and the integration of Rockstar Energy. In early 2026, PepsiCo further signaled its confidence by increasing its stake in Celsius to 11% via a $585 million deal. Most recently, in March 2026, the company announced its official entry into Spain through a partnership with Suntory, marking a significant step in its European expansion.

Profitability and Fair Value 🎯

Celsius is firmly profitable, reporting a GAAP net income of $108 million for 2025. While net profit growth slowed slightly due to one-time distributor termination fees (totaling $327 million) and acquisition costs, the underlying Adjusted EBITDA of $619.6 million demonstrates massive operational strength.

Fair Value Assessment:

The stock currently trades around $41.50, which many analysts view as an attractive entry point. While the trailing P/E ratio appears high, a Discounted Cash Flow (DCF) analysis suggests an intrinsic value closer to $88.62, implying the stock could be undervalued by over 50% relative to its long-term cash-flow potential. The market is currently weighing short-term "integration noise" against the long-term benefit of a 20% market share.

Analyst Estimates and Ratings 📊

• Consensus Rating: The consensus remains a "Buy" or "Strong Buy" among the majority of Wall Street firms. In the last 30 days, major institutions like Needham, JP Morgan, and UBS have reiterated their bullish stances.
• Price Targets: The average 12-month price target is approximately $64.29, with some high-side estimates reaching $85.00. This suggests a potential upside of 50% to 70% from current levels.
• Analyst Sentiment: Analysts are particularly focused on the "spring planogram resets," where Celsius is expected to see a 17% increase in shelf space and Alani Nu is projected for triple-digit space gains in convenience stores just in time for the summer peak.
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Investor-Focused Takeaway: Is CELH Right for Your Portfolio?

Celsius has transitioned from a volatile "growth darling" to a mature energy platform. The summer of 2026 will be the first season where the company has its full three-brand arsenal (Celsius, Alani, Rockstar) fully integrated into the PepsiCo distribution machine.

What to Watch in the Near Term:

• Summer Sales Data: Monitor June and July scanner data for "Brand Celsius" to see if it maintains its 20%+ growth rate.
• International Traction: Look for early results from the Spanish and UK markets as a blueprint for global scaling.
• Margin Recovery: Watch for gross margins to return to the 52%–54% range in the second half of 2026 as one-time costs fade.

Recommendation:

Celsius (CELH) is a strong "Watch" and "Accumulate" candidate before the summer heat hits. With massive shelf-space gains and a dominant partnership with PepsiCo, the company is poised to capture a significant portion of the seasonal beverage surge.

Final Take: The Performance Engine and the Clean-Label Disruptor

The beverage revolution isn’t just about flavor and marketing—it’s about category dominance at scale. Success in 2026 requires two things: a high-performance distribution machine that captures the fitness-minded consumer and a transparent, clean-label alternative that disrupts the traditional soda aisle.

That’s where Celsius Holdings (CELH) and Zevia PBC (ZVIA) stand apart.

sector.

🍃 Zevia PBC (ZVIA) — The Radically Real Soda Disruptor

• Massive Reach: New national Costco rollout and 39,000+ retail locations providing unprecedented volume potential.
• Celebrity Catalyst: Multi-year partnership with Cardi B set to trigger a high-velocity "Summer of Real" marketing blitz.
• Profitability Pivot: Achieved break-even Adjusted EBITDA with a lean, asset-light model focused on high-margin soda and energy.
• ➤ Best for: Value-oriented investors looking for a high-upside "turnaround" play priced at a significant discount to its growth potential.

🔥 Celsius Holdings (CELH) — The High-Performance Energy Engine

• Market Dominance: Now commanding 20% of the U.S. energy market through the "strategic energy captaincy" of the PepsiCo network.
• Portfolio Scale: Integration of Alani Nu and Rockstar creates a triple-threat platform targeting every major consumer demographic.
• Financial Strength: Massive Adjusted EBITDA growth and a clear path to $2.5B+ in annual revenue.
• ➤ Best for: Investors seeking a high-growth, institutional-grade compounder with a dominant moat in the functional energy

Investor Insight

🌱 Want a high-reward, clean-label disruptor with a major summer marketing catalyst? → ZVIA

⚡ Want a proven market leader with massive institutional backing and distribution scale? → CELH

Bottom Line:

The beverage market doesn't grow on sugar anymore—it scales on functional benefits and ingredient transparency.

Celsius owns the performance-minded consumer through a massive distribution machine, while Zevia is the plant-based alternative capturing the zero-sugar movement. As the summer heat drives record consumption, CELH and ZVIA aren't just refreshing options—they are foundational to the next generation of the beverage industry.

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Happy Trading
​— Team Premium Stock Alerts