Russ Savage, billionaire founder of Rockstar Energy, has acquired more than 12 million shares of Celsius Holdings, representing approximately 4.7% of the company and valued at roughly $300 million at current market prices. Savage, who founded Rockstar in 2001 and sold it to PepsiCo in 2020 for over $4 billion, is now publicly calling for significant leadership changes at Celsius, the energy drink company popular among athletes and health-conscious consumers.
Savage has stated that the company’s CEO, COO, brand manager, and marketing manager should all be terminated. He claims to have been offering advice to Celsius for over a year regarding its cost structure and marketing approach, but says his recommendations were largely disregarded. Savage has volunteered to assume the CEO position himself, arguing that Celsius needs decisive, detail-oriented leadership similar to what he provided when building Rockstar from its inception.
Celsius shares declined sharply earlier in the week after the company reported second-quarter earnings that fell short of analyst expectations. The company posted earnings per share of 36 cents versus the 43 cents anticipated by Wall Street, and revenue of $817.9 million missed the projected $870 million. CEO John Fieldly attributed the shortfall to a product rationalization initiative and a temporary pause in innovation efforts, while managing the integration of recently acquired brands including Alani Nu and the Rockstar brand in North America.
Savage contends that Celsius has excessive management layers, elevated costs, and insufficient accountability. He emphasized that losing shelf space in the competitive energy drink market is particularly problematic, as major retailers typically reallocate that space to established competitors. Savage began accumulating his current stake in March when the stock traded in the low $30 range, believing the company was undervalued and positioned for recovery. Celsius responded to Savage’s public statements by saying it welcomes value-creating ideas from shareholders and noted ongoing board and management engagement with him over several years.
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