Thursday morning Celsius Holdings (CSUH.ob) announced that the world's first calorie burning beverage, Celsius, was available for purchase in Roche Bros. supermarkets in Massachusetts.
Then, later that afternoon, another press release followed stating that Celsius would also be available in more than 80 locations of Price Chopper supermarkets, a chain spread throughout the northeastern states including locations in New York, Pennsylvania, Connecticut, Massachusetts, New Hampshire and Vermont.
These two press releases confirm the strategy of heavily targeting the northeastern states for distribution, as described by Celsius CEO Steve Haley in numerous conference calls.
Also of note, Celsius will be available in the diet sections of both the Roche Bros and Price Chopper stores. The fact that Celsius is now strictly being marketed as a dietary alternative to the sugar laden energy drinks is a huge step in the progress of adding validity to the 'functional beverage' market.
When Celsius could only be found in the 'new age' sections of supermarkets, there was little that set the product apart from any other beverage in that section. As a result, that led to Celsius getting pulled from the shelves in various locations, as was the case in Albertsons stores in Southern California.
Eventually, if the gaining momentum of the product continues, Celsius will find the mainstream and it won't matter where the product is located in the supermarket. For now, it makes the most sense to market Celsius as a dietary supplement that enables the consumer to burn extra calories and, ultimately, lose weight.
Aside from those looking for an easy way to burn extra calories, Celsius also appeals to consumers like me; that don't necessarily drink it for the calorie burning benefits, but use it as a healthy alternative to diet sodas that are loaded with chemicals and can be just as unhealthy for a consumer as regular soda.
The Celsius stock price responded positively to the news of the new distribution by closing the week at it's 52-week high on decent volume.
There is no doubt that Celsius is a product on-the-move, and over the past few months, that has translated into a stock on-the-move.
While the success of the company, and it's stock, are far from a sure thing, each new distribution contract is accompanied by the feeling that the management team has a methodical business plan that is slowly, but surely growing the company.
I've always been a big fan of this product and I continued to buy the stock even (especially) when it was trading for two and half cents. The recession probably slowed the growth rate as consumers cut back on spending, but it looks like the patience of company management and investors is beginning to pay off.
I admit that much of my confidence in this product came from the fact that I knew I could count on America to jump on a new 'lose weight quick' product.
Celsius also has four clinical studies to back it's claims, making it easier to market.
With every day that goes by, I grow more and more confident that this one will pay off.
VFC is long CSUH.ob.
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