Ferrari signed a multi-year partnership with energy drink brand Celcius, and they are a direct rival of Red Bull in their own business. Celcius is a big player in their circuit, and its sponsorship deal with Ferrari means it has become one of the first brands to be associated with Prancing Horse after Lewis Hamilton’s transfer confirmation.
Currently, they are worth well over $14 billion and are the fastest-growing energy drink-based brand in the market. Celcius’ business exploded during the COVID-19 pandemic after they focused on the health and wellness factor. It got itself into a lifestyle movement and marketed its consumables as “better-for-you” drinks, unlike Red Bull or Monster Energy, who are runaway leaders in this sector.
They had mammoth exposure off late, and no wonder they are standing with billions of dollars in revenue despite being valued at just $280 million in 2018. The impact was so strong that PepsiCo, the global leader in beverages, decided to invest $550 million in 2022. Now, they have their focus on Formula 1, and it looks like the right time to enter the sport.
The US-based company had low-key arrangements with Ferrari last year. In this agreement, Ferrari showcased Celcius’ branding in three American races in Miami, Austin, and Las Vegas. However, coming into 2024, things changed drastically. They now have a full global partnership with Charles Leclerc and Co., and its logos will be featured on the cars and drivers’ overalls from this season onwards.
Hamilton would continue with Monster Energy amid Red Bull and Celsius’ battle
While Celsius tied up with Ferrari to come into the limelight against Red Bull, Monster Energy made sure they held on to Lewis Hamilton despite the seven-time world champion’s decision to move to the Prancing Horse next year. Hamilton has been in a long-term partnership with Monster Energy and it will continue to be that way.
On the other hand, the Monster Beverage Corporation-owned brand recently shifted its loyalty to McLaren from Mercedes. They had a 14-year-old partnership with the Silver Arrows, but from 2024, they would feature in McLaren cars, drink bottles, and drivers’ overalls.
McLaren stands to be the undisputed king when it comes to sponsorships. Monster Energy is an addition to it. As they parted ways, they made sure they held on to Hamilton, owing to his indisputable fame. The exact reason for the switch is undisclosed, but rumors say that Zak Brown’s team has better marketability than Toto Wolff’s in the current scenario.
With Hamilton gone next year, the exposure is expected to reduce even further. Therefore, the significant sponsorship change from Mercedes to McLaren makes sense from a business point of view.
