Rockstar Energy founder Russ Savage has built a sizeable stake in Celsius Holdings and is publicly positioning himself to lead the energy drink company following a difficult quarterly earnings report and a sharp decline in its share price.
Savage now controls more than 12 million Celsius shares, representing roughly 4.7% of the company. The holding is valued at close to $300 million based on recent trading levels.
His investment comes as Celsius faces growing scrutiny over its financial performance, product strategy and integration of several major brands.
Savage, who founded Rockstar Energy in 2001 before selling the brand to PepsiCo in 2020, has called for significant changes within Celsius management and said he is prepared to take on the chief executive position himself.
Earnings Miss Raises Pressure on Celsius
The leadership challenge follows Celsius Holdings’ second-quarter earnings, which fell short of Wall Street expectations.
The company reported earnings of 36 cents per share, compared with analysts’ expectations of 43 cents. Quarterly revenue reached $817.9 million, below the roughly $870 million anticipated by analysts.
Net income attributable to common shareholders also declined sharply compared with the same period a year earlier.
Investors responded negatively to the results, sending Celsius shares down 18% on Thursday.
The stock recovered strongly on Friday after news emerged of Savage’s stake and his interest in becoming CEO, highlighting investor attention around the possibility of strategic or leadership changes at the company.
Savage Calls for Simpler Management Structure
Savage has been discussing Celsius’ business strategy with the company for more than a year, focusing particularly on marketing expenses, organisational structure and operating costs.
He believes the company has developed too many layers of management and needs clearer accountability for major decisions.
His concerns have intensified following Celsius’ latest earnings performance.
Savage has also questioned the company’s approach to product rationalisation and shelf-space management, an especially important issue in the highly competitive energy drink market.
Retail shelf presence plays a major role in sales for beverage companies, with Celsius competing directly against established brands including Red Bull and Monster.
Celsius Defends Long-Term Strategy
Celsius, meanwhile, has maintained that demand for its broader energy drink portfolio remains resilient and that the company is focused on sustainable long-term growth.
The company has also confirmed that members of its board and management team have engaged with Savage on several occasions over recent years.
Chairman and CEO John Fieldly said during the company’s earnings discussion that recent performance had been affected by efforts to streamline its product range and by a deliberate slowdown in new product launches.
Celsius is simultaneously managing the integration of Alani Nu and Rockstar into its expanding portfolio.
The company acquired Alani Nu in a $1.8 billion transaction last year. It also took control of the Rockstar brand in the United States and Canada as part of a broader strategic partnership with PepsiCo, while Pepsi continues to own Rockstar internationally.
Fieldly acknowledged that the company may have moved too aggressively when reducing some existing products to prepare space for newer offerings.
Despite the setback, Celsius remains a major participant in the US energy drink industry, with the company saying its portfolio accounts for about one in every five energy drinks sold in the country.
From Rockstar to Celsius
Savage built Rockstar from a relatively small startup into one of the best-known names in the global energy drink market.
He has said that during Rockstar’s growth, he was closely involved across sales, marketing, distribution, sponsorships, product development and packaging.
Savage began accumulating his latest Celsius position in March when shares were trading in the low-$30 range, believing the company had significant recovery potential.
His decision to speak publicly signals a more aggressive approach after previously offering advice privately.
Whether his campaign results in formal boardroom changes remains uncertain, but his substantial ownership position and industry experience are likely to keep pressure on Celsius management as investors assess the company’s next steps.
With Celsius shares recovering to around the high-$20 range following the disclosure, attention will now turn to how the company responds to calls for leadership changes and whether its portfolio strategy can restore stronger earnings momentum.
News Highlights:-
