What happened

Shares of Celsius Holdings (CELH -1.27%) were on the move this week after the energy drink maker signed a deal with the Professional Fighters League (PFL) to become its official energy drink partner.

Celsius stock jumped on the news on Wednesday and continued to gain on Friday. For the week, it was up 10% as of Friday morning, according to data provided by S&P Global Market Intelligence.

So what

Energy drink companies like Red Bull and Monster Beverage have found similar success marketing themselves with MMA leagues and events like the X Games, the extreme sports competition, so it's not surprising to see Celsius following a similar path. 

According to a press release, the extensive partnership includes PFL fighters becoming brand ambassadors for Celsius, naming rights for the Celsius VIP cageside club, a social media collaboration, and the winner of each match will even drink a Celsius beverage in the PFL Smartcage at every event.

The new partnership will premier tonight at the Professional Fighters League championship at Madison Square Garden. 

Now what

Celsius, which makes energy drinks that are marketed as healthier alternatives, has caught fire since the start of pandemic as a boom in sales on Amazon has helped the company expand distribution, and sign a partnership with PepsiCo in August.

The PFL deal is the latest sign that Celsius could be on track to be the next premier energy drink brand as sales roughly doubled in the third quarter.

At a market cap of $8.3 billion, Celsius is still less than one-sixth the value of Monster, showing the beverage stock still has a lot of room for growth.