John Fieldly, Celsius Holdings CEO, joins CNBC's 'Squawk on the Street' to discuss the company's new deal with PepsiCo, areas of growth, and much more.

PepsiCo has announced an increased investment in Celsius Holdings, raising its ownership to approximately 11 percent. As part of the expanded partnership, Celsius will acquire the Rockstar energy brand in the U.S. and Canada, while Alani New, another fast-growing energy drink brand, will be integrated into PepsiCo's distribution network. Additionally, PepsiCo will nominate an extra director to Celsius's board, further strengthening the strategic alignment between the two companies.

Celsius CEO John Fieldly highlighted the benefits of the deal, including enhanced distribution capabilities, access to PepsiCo's sales and merchandising expertise, and the addition of Rockstar to Celsius's portfolio. The combined brands now represent about a 20 percent share of the energy drink market under Celsius Holdings. Fieldly emphasized the partnership's focus on growth and efficiency, while noting that future changes in ownership would depend on PepsiCo's decisions.

Celsius CEO: We now have a multi-portfolio approach

PepsiCo announcing it will boost its stake in energy drink maker Celsius, increasing its ownership to about 11 percent. Celsius will acquire the rock star energy brand in the U.S. and Canada, while PepsiCo will nominate an additional director to serve on the board at Celsius. Let's bring in Celsius CEO John Fieldley this morning to talk more about how this came about. John, congratulations. Good to have you. Glad to be here. Explain what Pepsi sees in you guys. Yeah, well, within Celsius Holdings, we have really one of the modern energy portfolio. The energy category continues to grow in scale. We have a Celsius portfolio, which is all about living fit, inspiring you inside and outside the gym to accomplish your goals. And we have Alani New, which is one of the fastest growing brands in the energy category, bringing in new female consumers, which is a growth driver within the category. And what we have with this transaction, it brings Alani into the PepsiCo system, really has a uniformed one of the best distribution networks out there and their capabilities and also brings on Rockstar, as you mentioned, into our portfolio. So now we have a multiple portfolio approach and our go to market strategies. It's really exciting times here. We're leveraging the category and being able to bring energy drinks to more people in more places. I was going to ask you whether you thought the strongest pillars of the deal are going to be about the liquidity or the distribution or having Pepsi's eyes and radar. I assume it's a mix of all of that. It is. Another thing is we're having a strategic alignment being the energy captain over the Celsius Holdings portfolio within the PepsiCo distribution system. So having one united distribution front and all the additional focus within our portfolio, within Pepsi, leveraging their sales force, their organization, their merchandising, and also leveraging our infrastructure that we built here at Celsius through our supply chains and operations, driving additional efficiencies. It really is seamless within us and we're excited about that. Given the fact that Coca-Cola owns a significant stake in Monster, did you have to have a big partner like Pepsi in order to continue thinking about growth and expansion? Well, that's one thing in the consumer product space, and especially in a highly competitive category like the energy category, your distribution is so critical. To have that distribution power in order to keep product on shelf, keep it in cold doors, cold placements and cold coolers. So when you look at your go to market strategies or building a consumer products company, getting retail and getting the customers is one thing. The next thing is how do you get it to shelf? And Pepsi is one of the world class distribution networks, and we're further tied in with them now strategically with this transaction, which is really going to open additional doors, availability, food service, college and universities for the Alani portfolio. And that allows us to take our expertise in the energy category and further build out and define Rockstar, which is a new brand for us. And when you look at what these three brands do, it represents approximately about 20 share now in the energy drink category will be underneath the roof of Celsius Holdings. It's already a good deal for Pepsi, the convert price at $51.75. Obviously, your stock well above that. John, many people wonder whether they will continue to invest, they will continue to own even more over time. Is that a possibility? Is it possible at some point you could see giving up control of the company to Pepsi? Well, I think what this investment does, it really solidifies our strategic alignment, not only from a business standpoint, a commercial standpoint, but also from an investment standpoint. Now they own 11% of the company. We have two board members that are represented within our board of directors. So we're strategically tied in at the highest level within the organization. So I can't make decisions on where they go from here, but we are truly strategic partners and excited about the opportunity and roads ahead. I'm sure you want to be ginger about speaking for Pepsi's strategic goals, but do you think it means a bigger emphasis for them on beverage over snacks? I can't make any comments, but we're excited to really grow the energy category for them. We've got some great brands between Celsius, Elani, and now Rockstar into the portfolio. It's going to be a great partnership and collaboration, and we're all excited about the future.

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