Celsius Holdings Hit with Class Action Over Labeling for Sparkling Orange Beverage (2024)

A proposed class action alleges Celsius Holdings has deceived consumers by characterizing its Sparkling Orange beverage as containing natural orange flavor.

Celsius Holdings Hit with Class Action Over Labeling for Sparkling Orange Beverage (1)Contrary to representations on the product’s front label, the taste of Celsius’ Sparkling Orange “healthy energy” beverage is derived from “a lab synthesized ingredient” defined vaguely as “natural flavor,” the 36-page complaint alleges.

“By characterizing the Product in this manner—failing to either include its characterizing ingredient, or alternatively, clearly indicating on the Product’s principal display panel that it is a ‘flavored’ beverage, Celsius has falsely and misleadingly labeled its Products, deceived its consumers, and violated the law,” the case, filed in California’s Southern District Court, alleges.

According to the suit, Celsius touts its line of fitness beverages as “health energy” drinks and “functional calorie burning fitness beverages” containing “no preservatives,” artificial colors or flavors. The lawsuit states the drinks are based on a “proprietary formulation” that provides vitamins, minerals and other “healthful ingredients,” such as guarana, ginger root and green tea.

Within the fitness beverage market, Celsius, the suit says, has “created a niche” for itself thanks in part to a series of “structure function claims,” the inclusion of healthful ingredients and statements concerning what the beverages are free from, such as preservatives or artificial colors. As the lawsuit tells it, Celsius is “keenly aware of its labeling obligations” under the Federal Food, Drug and Cosmetic Act and other statutes.

The issue, the lawsuit claims, is that Celsius has nonetheless chosen to “deceptively label” its beverages by way of “obfuscating the material fact that they [do] not contain real fruit,” but instead derive their flavor from “highly processed, lab-synthesized flavoring packets.” While the defendant’s Sparkling Orange product is labeled and characterized as an orange beverage, the product “contains no orange,” and its flavors are described in the ingredients list only as “natural flavor,” the lawsuit says.

The suit alleges Celsius’s failure to indicate on the product’s front label that it does not contain its characterizing ingredient, but rather is flavored by “lab synthesized chemicals,” is deceptive, misleading and in violation of California and federal laws.

“Under any scenario, Celsius has failed to indicate that its Products are flavored—a failure that is in violation of the law and operates as deceit upon consumers,” the case claims.

The lawsuit looks to represent all consumers in the United States who bought certain Celsius beverage products during the applicable statute of limitations period.

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Celsius Holdings Hit with Class Action Over Labeling for Sparkling Orange Beverage (2024)

FAQs

Celsius Holdings Hit with Class Action Over Labeling for Sparkling Orange Beverage? ›

Celsius Holdings, Inc. has agreed to a settlement after being accused of misleading labeling. Customers alleged that cans of Celsius featured a “no preservatives” disclaimer even though they contained citric acid. The company contended the citric acid was added for flavor and not being used as a preservative.

What Celsius drinks were recalled? ›

The most recent product impacted by this recall is all flavors of the Celsius Energy Drink Mixes, which have 200 milligrams of caffeine per serving.

What's the deal with Celsius drink? ›

CELSIUS powers active lives every day with essential, functional energy. We're different from other energy drinks because we focus on movement. When combined with exercise, our formula is clinically proven to boost your metabolism and help you burn body fat.

Does Celsius actually burn body fat? ›

Backed by several clinical trials, drinking CELSIUS prior to fitness activities is proven to accelerate metabolism, burn body fat and provide essential energy.

Does Coca Cola own Celsius? ›

Celsius was already successful by the time PepsiCo stepped onto the scene in August 2022, becoming the primary owner of Celsius Holdings and taking up one of the largest company shares with a $550 million investment.

Why are they discontinuing Celsius? ›

Drinking one Celsius is equal to about 4-5 cups of coffee, which is a concern to many, including the NCAA. In addition, the drink is found to contain some banned substances, and because of this the NCAA banned the sports drink for its athletes.

Is Celsius still safe to drink? ›

Are Celsius drinks bad for you? For most healthy individuals (healthy adults, not kids), Celsius is likely okay in moderation. But it's important to note that there's a pretty high amount of caffeine in all Celsius drinks.

Does Celsius have Ozempic in it? ›

Meanwhile, the TikTok hashtag #Celsius has over 1 billion views, as college students praise the product and nutritionists try to dispel false claims about it, i.e., that Celsius contains Ozempic (it does not).

Is Celsius healthier than Red Bull? ›

Red Bull and Celsius are hugely popular energy drinks. After reviewing the ingredients, nutritional value, and taste, we found that Celsius was the better choice overall.

Is Celsius drink anti inflammatory? ›

CELSIUS BCAA +Energy has a unique combination of BCAAs, tart cherry, vitamin D3, and caffeine that all work together to reduce inflammation and fuel muscle recovery without keeping you up all night.

What drugs are in Celsius energy drinks? ›

Celsius drinks have the illegal banned stimulants of ginseng, guarana, L-carnitine and taurine. These ingredients are not only considered banned by the NCAA but also the National Olympic committee and the World Anti-Doping Agency.”

What are the side effects of Celsius energy drinks? ›

Despite its claims about being a healthier beverage alternative, Celsius energy drinks may also have other potential negative side effects. Some consumers have reported experiencing jitteriness, increased heart rate, and gastrointestinal discomfort.

Can Celsius cause weight gain? ›

🥤These 3 drinks could actually be making you gain weight… 🚀 Celsius and Bang Energy Drinks: Zero calories but a whole lot of drawbacks. They contain sucralose, an artificial sweetener that can disrupt insulin signaling. Insulin is the hormone crucial for body fat storage and burning.

Is Celsius owned by Gatorade? ›

In August, PepsiCo acquired a $550 million stake in Celsius Holdings, which offers fitness-focused energy drinks. In September, it launched caffeinated energy drink Gatorade FastTwitch with the NFL. The drink will hit stores in February 2023, but it's available on NFL sidelines this season.

Who is Celsius owned by? ›

Celsius was already successful by the time PepsiCo stepped onto the scene in August 2022, becoming the primary owner of Celsius Holdings and taking up one of the largest company shares with a $550 million investment.

Who bought out Celsius? ›

PepsiCo announced Monday a $550 million investment in energy drink maker Celsius Holdings as part of a long-term distribution deal with the smaller company. Energy drinks are one of the fastest-growing nonalcoholic beverage categories.

What is in Celsius drink that is banned? ›

Celsius drinks have the illegal banned stimulants of ginseng, guarana, L-carnitine and taurine. These ingredients are not only considered banned by the NCAA but also the National Olympic committee and the World Anti-Doping Agency.”

Which energy drinks were recalled? ›

This follows a more extensive recall from Dec. 22, 2023, that saw various energy drink brands, including “ABE,” “Bleach T4-F,” “JoJo's,” “Bizarre Adventure Stardust Crusaders,” “Juvee,” “One Piece,” “Operation Phoenix,” and “Up Time,” mentioned.

Which energy drink has a recall? ›

Energy drinks recalled in Canada over non-compliances related to caffeine and labeling
BrandProductPublished date
PrimeCaffeinated Energy Drinks2023/07/12
Raze EnergyCaffeinated Energy Drinks2023/08/09
Red BullCaffeinated Energy Drinks2023/10/27
Ryse FuelCaffeinated Energy Drinks2023/07/28
6 more rows
Dec 22, 2023

What energy drink was taken off the market? ›

Logan Paul's Prime Energy drink pulled from shelves over 'concerns for the health of kids' - US News - News - Daily Express US.

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