Rockstar Energy founder Russ Savage has disclosed that he now controls 12 million shares of Celsius Holdings, representing approximately 4.7% of the company, a stake valued at about $300 million at current stock levels [1]. Savage is calling for the replacement of Celsius's leadership, including the CEO, COO, brand manager, and marketing manager, following what he described as management missteps and the company's recent earnings miss [1]. Savage has put himself forward as a candidate to become CEO of Celsius [1].
Celsius shares fell 18% on Thursday after the company reported second-quarter earnings that missed analyst expectations, posting 36 cents per share compared to the 43 cents expected by Wall Street, according to LSEG [1]. Revenue came in at $817.9 million, below the anticipated $870 million, and net income attributable to common shareholders dropped by more than half compared to the same quarter last year [1].
On the earnings call, Celsius Chairman and CEO John Fieldly attributed the shortfall to a product rationalization program and a deliberate pause in innovation, as the company manages the integration of Alani Nu (acquired last year for $1.8 billion) and the Rockstar brand in the U.S. and Canada, which it acquired from Pepsi as part of a long-term strategic partnership [1]. Fieldly acknowledged that the company may have been overly aggressive in reducing its product lineup but emphasized that Celsius still sells 1 out of every 5 energy drinks in the U.S. and remains a key growth driver in the sector [1].
Savage, who founded Rockstar in 2001 and sold it to PepsiCo in 2020 for over $4 billion, stated that he has been advising Celsius on cost structure and marketing strategy for over a year but claims his input was largely ignored [1]. He criticized the company's management for having too many layers and insufficient accountability, insisting that new leadership is necessary [1]. Celsius did not immediately respond to requests for comment [1].
CONCLUSION
Russ Savage's public call for a leadership overhaul at Celsius follows a significant earnings miss and a sharp decline in the company's share price. The situation has heightened investor scrutiny and could lead to further changes in management or strategy at Celsius, with Savage positioning himself as a potential new CEO.