Russ Savage, the billionaire founder of Rockstar Energy, has purchased millions of shares of Celsius Holdings and is calling for the ouster of the company’s CEO after its recent earnings miss.<\/p>\n
Savage now controls more than 12 million shares of Celsius, which amounts to roughly 4.7% of the company and would be worth about $300 million at current stock levels. Celsius markets its energy drinks to athletes and other health-conscious consumers and has experienced significant growth in recent years.<\/p>\n
Savage founded Rockstar in 2001 and sold it to PepsiCo in 2020 for a final purchase price of more than $4 billion. He has been quietly advising Celsius to change its cost structure and marketing strategy for over a year but now believes new leadership is needed.<\/p>\n
Savage has been critical of the company’s management, stating that the CEO, COO, brand manager, and marketing manager all need to be fired. He has also expressed concerns about the company’s cost structure, citing too many layers of management and a lack of accountability.<\/p>\n
Celsius shares plunged 18% after the company’s second-quarter earnings missed analyst expectations, coming in at 36 cents per share versus the 43 cents expected by Wall Street. Revenue of $817.9 million fell below the $870 million expected, and net income attributable to common shareholders fell by more than half compared to last year’s second quarter.<\/p>\n
On the company’s earnings call, Celsius Chairman and CEO John Fieldly cited a product rationalization program and deliberate pause in innovation as main reasons for the shortfall. However, Savage believes that the company’s problems run deeper and that new leadership is needed to address them.<\/p>\n
Savage has offered to take over as CEO of Celsius, citing his experience in building Rockstar Energy from the ground up. He managed every detail of the company, from sales and marketing to sponsorships, packaging, distribution, and innovation.<\/p>\n
Savage believes that the same type of cost-conscious, driven leader is needed at Celsius to address its current challenges. He has stated that he is publicly volunteering to take on the role and that the current CEO has lost credibility with the investment community.<\/p>\n
Celsius stock now trades at about $27 per share after a sharp gain on Friday following the report of Savage’s stake. The company has not responded to requests for comment on Savage’s criticisms and offer to take over as CEO.<\/p>\n","protected":false},"excerpt":{"rendered":"
Russ Savage, founder of Rockstar Energy, has acquired a significant stake in Celsius Holdings and is seeking to replace its CEO after a recent earnings miss.<\/p>\n","protected":false},"author":5,"featured_media":2467,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[2586,2589,2588,2587],"yoast_head":"\n