Celsius Holdings reshuffles leadership amid shareholder pressure and earnings miss
The energy drink maker announced a senior executive reshuffle following a report that Rockstar Energy founder Russ Savage called for management changes. Shares slipped after second-quarter results fell short of Wall Street expectations.
Celsius Holdings has announced a significant reshuffle of its senior leadership team, describing the move as an organisational realignment designed to support its total energy portfolio strategy. The changes come shortly after the Florida-based company’s second-quarter results missed Wall Street expectations, prompting a decline in its share price.
Eric Hanson, the company’s president and chief operating officer, has left the business. Celsius did not disclose the reason for Hanson’s departure or whether a replacement will be appointed. Chairman and chief executive John Fieldly stated that the actions had been evaluated and discussed over the past several months, emphasising the need for the leadership structure to evolve alongside business priorities.
Tyler Bohannon has been promoted from executive vice-president of North American sales to chief commercial officer. In this new capacity, Bohannon will oversee field sales, key retailer accounts, direct-store-delivery operations, and revenue growth management. Prior to joining Celsius, he held senior roles at Nestlé Waters, Coors Brewing, Rockstar Energy, and PepsiCo.
Tony Guilfoyle, formerly the chief customer officer, has been moved into a newly created role as chief business transformation officer. Guilfoyle will lead company-wide initiatives focused on strengthening cross-functional execution, advancing operational excellence, and supporting artificial intelligence adoption. He previously served as executive vice-president of sales at Rockstar Energy for more than a decade before joining Celsius in 2020.
The leadership changes follow a report that Russ Savage, founder of Rockstar Energy, publicly called for management changes at Celsius. Savage, who holds an estimated 4.7 per cent stake in the company, told CNBC he believed the chief executive, COO, brand manager, and marketing manager should be fired, and offered to take the CEO role himself. A Celsius spokesperson confirmed that management has engaged with Savage multiple times over the past several years and welcomed value-creating ideas from shareholders.
Celsius reported second-quarter revenue of $817.9 million, an 11 per cent increase, contributing to a 50 per cent rise in first-half revenue to $1.6 billion. However, William Blair analyst Jon Andersen noted that second-quarter sales were 8 per cent below the firm’s forecast and 6 per cent below consensus estimates. The company attributed a nearly 12 per cent drop in revenue for its namesake brand to higher trade and promotional investment, inventory rebalancing, softness in the club channel, and planned moderation in innovation activity.
