Exactly one year ago, Celcius (CELH) announced a $15 million investment from a group led by billionaire Li Ka-Shing. The importance of Ka-Shing’s investment may soon become evident, as CELH ramps its expansion into China.
You see, Ka-Shing is the “one of the richest and most influential tycoons in Asia”, according to Forbes. Among other things, he is the chairman of the board for CK Hutchison Holdings, the parent company of the A.S. Watson Group (ASW). Watson is a retail operator with over 12,000 stores. Per Bloomberg, 3,000 of these stores reside in “more than 430 cities in China, making it the largest player with almost 30 percent of the nation’s drugstore market”.
In other words, Ka-Shing can greatly aid his investment in CELH by simply putting Celsius into his stores.
This is no small issue. Anyone who has tracked Monster’s (MNST) progress in China knows that the road has been a rocky one. In China, Red Bull dominates so completely that the country doesn’t even recognize energy drinks as its own category.
Monster has been fighting to changes that mindset. This will ultimately provide a downstream benefit to CELH. However, having Ka-Shing behind them may prove far more beneficial.
See my last post on CELH for more info on this and the company’s valuation.
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