Energy drink brand Alani Nu surpasses $1 billion in sales as the functional beverage craze keeps on soaring

Energy drink company Celsius Holdings announced today that its subsidiary brand, Alani Nu, has notched more than $1 billion in sales over the past 52 weeks—representing a head-turning 72.4% year-over-year sales increase. The company’s impressive success demonstrates that the functional beverage craze may not be merely a passing fad for consumers.

Celsius Holdings, which also owns the popular energy drink Celsius, officially acquired Alani Nu last month for $1.8 billion. The brand was originally founded by entrepreneur Katy Schneider and husband Haydn Schneider in 2018, and has since found a growing audience of Gen Z and millennial consumers looking for a low-calorie, zero-sugar energy drink option. 

According to a press release, Alani Nu’s $1 billion milestone “has been fueled by accelerated brand growth, strong and unique innovation, and a growing female energy drink consumer segment seeking better-for-you, functional beverages that fit their health and wellness lifestyles.”

As of this writing, Celsius Holdings stock is up slightly by 0.16% since market open.

What Alani Nu’s success says about the future of “functional beverages”

Over the past several months, “functional beverages,” or drinks that offer some kind of mood or health boost (in the case of Alani Nu and Celsius, that would be the added jolt of caffeine), have gained popularity in the mainstream beverage market. 

A study by Nielsen IQ last spring found that sales of functional beverages grew by 54% between March 2020 and March 2024 to $9.2 billion, accounting for 10% of the total nonalcoholic beverage market in the U.S.

Subcategories of this market, including energy drinks and sports beverages, are similarly trending up. Experts across the beverage industry largely attribute this trend to a rising interest in health and wellness among Gen Z and millennial consumers, who are increasingly choosing to ditch alcoholic beverages in favor of more “healthy” drinks that can offer one or more benefits. 

In the past year, new brands like the DTC sports beverage company Magna and influencer Alex Cooper’s electrolyte drink brand Unwell have emerged to capitalize on this widening consumer base. Meanwhile, existing brands like Mio, Bodyarmor, and Liquid I.V. have all introduced refreshed looks to emphasize their “functional” features. 

Alani Nu, which has positioned itself as a “health and wellness” brand for women since its founding, was uniquely prepared to capitalize on this trend as it emerged. The energy drink comes with 200 mg of caffeine per 12-ounce can (the equivalent of about two cups of coffee) and is vegan, sugar-free, gluten-free, and low-calorie.

The brand’s $1 billion milestone shows that, more than a year after the initial hype around functional beverages first began, the sector has taken root as a more permanent beverage category—one that’s both attracting a new generation of consumers and causing beverage giants to rethink how they market their products.

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