Rockstar Energy founder builds Celsius stake, wants to take over as CEO
Rockstar Energy founder Russ Savage told CNBC he now controls 12 million shares of Celsius Holdings, amounting to roughly 4.7% of the energy drink company.
Billionaire Russ Savage, founder of Rockstar Energy, has amassed a substantial stake in Celsius Holdings, now owning over 12 million shares, representing roughly 4.7% of the company. Savage, who sold his Rockstar Energy to PepsiCo for over $4 billion in 2020, has been advising Celsius to overhaul its cost structure and marketing strategy for over a year.
However, he now believes that a complete overhaul of the company's leadership is necessary, calling for the removal of the CEO, COO, brand manager, and marketing manager. Celsius responded to Savage's criticisms by stating that it is experiencing continued demand and resilience. The company's stock plummeted 18% following its second-quarter earnings miss, with revenue falling below expectations and net income plummeting more than half compared to the previous year.
Celsius Chairman and CEO John Fieldly attributed the shortfall to a product rationalization program and a deliberate pause in innovation, as well as the integration of Alani Nu and the Rockstar brand. Despite these explanations, Savage remains convinced that new leadership is needed, suggesting that he is willing to take over as CEO to turn the company around.
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