Rockstar Founder Russ Savage Demands Celsius CEO Overhaul After Earnings Miss
Celsius Holdings reported second-quarter revenue of $817.9 million and net income of $55.3 million, both falling short of analyst forecasts, prompting a public call for executive changes from a major shareholder.
Russ Savage, the founder of Rockstar Energy, has publicly called for the removal of Celsius Holdings chief executive John Fieldly and other senior executives following the company’s second-quarter earnings report that missed analyst expectations. Savage, who holds approximately 4.7% of Celsius Holdings stock, stated that the current management has lost credibility with the investment community and offered to step in as CEO.
The energy drink company reported second-quarter revenue of $817.9 million, representing 11% growth year-on-year, and adjusted diluted earnings per share of 36 cents, both falling short of forecasts. Net income fell 45% to $55.3 million from $99.9 million in the same period last year. Celsius Holdings shares dropped 18% on Thursday after the results were released, before recovering to around $27 on Friday following details of Savage’s position being published by CNBC.
Savage, who founded Rockstar Energy in 2001 and sold the brand to PepsiCo in 2020 for more than $4 billion, said he began acquiring his stake in Celsius Holdings in March when the stock traded in the low $30 range. He told CNBC that his position represents more than 12 million shares, valued at approximately $300 million. He is pushing for the departure of Fieldly, as well as the company’s chief operating officer, brand manager, and marketing manager.
Celsius Holdings attributed the earnings miss to a product rationalisation effort, a deliberate pullback on new launches, and challenges integrating recent acquisitions, including the $1.8 billion purchase of Alani Nu and the U.S. and Canada rights to the Rockstar brand. Fieldly conceded that the company may have trimmed its product count too aggressively to clear shelf space for newer offerings.
A Celsius Holdings spokesperson said the company welcomes value-creating ideas from shareholders and noted that board and management members have met with Savage multiple times over the years. Savage, who said he had been providing strategic advice to the company for more than a year but was largely ignored, warned that losing shelf space to competitors like Red Bull or Monster could be fatal for the brand.
