Beverage firm Celsius Holdings has collaborated with Hong Kong-based health and beauty retailer AS Watson Group (ASW) for expansion in the Asian market.

ASW will initially distribute Celsius Holdings' fitness drink Celsius in Hong Kong and Macau with plans for further expansion through other retail markets.

Celsius Holdings president and chief executive officer Gerry David said: "The energy drink category has grown steadily in the Chinese market in recent years, with reports showing sales to retailers volume growth of 18% in 2015 alone.

"Energy and weight loss products which target the health-conscious segment have seen tremendous growth in China in recent years."

"ASW produces its own bottled and bulk packaging distilled water for over 110 years for retail, office and domestic supplies, they also operate the world's largest distilled water plant.

"Their market leadership has been further enhanced by their expansion into Mainland China, and their distribution of leading mineral water brands like Pierval, Spa and San Benedetto.

"In 2005, they launched another innovation-Watsons Iso-tone, a sports drink designed to replenish fluids and dietary fibre lost by the body due to perspiration. We are excited and looking forward to this new strategic partnership."

AS Watson Industries managing director Michelle Chan said: "Energy and weight loss products which target the health-conscious segment have seen tremendous growth in China in recent years.

"Celsius offers a scientifically proven, high-performance energy drink which also provides unique benefits of calorie reduction and fat-burning technology attributed to a proprietary blend of ingredients.

"These benefits, backed by Celsius' numerous clinical studies, will introduce an enticing product category that we know our consumers will be drawn to."

Celsius also received an investment of $15.95m just over one year ago from a private investment firm Horizons Ventures.

The firm was started in 2004 and manufactures Celsius drink, which is available in seven flavours, carbonated and non-carbonated, and in powder stick formulas that can be mixed with water.

Celsius drink is claimed to not to contain preservatives, aspartame, high fructose corn syrup, artificial flavours or colours, and is low in sodium.

ASW was founded in 1841 and currently operates 12,400 stores in 25 markets. It has more than 650 stores in Hong Kong under Watsons, ParknShop, Fortress, and Watson's Wine brands.