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Rockstar Founder Builds 4.7% Stake in Celsius and Demands CEO Ouster

His public bid to become CEO puts immediate pressure on Celsius's board after a quarter of weaker sales and profit than analysts expected.

Overview

  • On Friday Russ Savage disclosed he owns more than 12 million Celsius shares, about 4.7% of the company, and publicly called for the CEO, COO and top marketing leaders to be fired while offering himself as CEO.
  • Celsius missed second-quarter expectations with EPS of $0.36 versus $0.43 expected and revenue of $817.9 million versus $870 million expected, a report that sent the stock down about 18% before Savage’s disclosure.
  • After Savage went public with his stake and criticism, Celsius shares recovered roughly 12–15% from the prior-day selloff as investors priced in possible management or governance change.
  • Celsius management says the shortfall stemmed from a product rationalization program, a deliberate pause in new launches and integration work for last year’s Alani Nu purchase and the U.S./Canada Rockstar rights.
  • Savage, who founded Rockstar and sold it to PepsiCo in 2020, says his hands-on turnaround style is needed to protect shelf space and market share in a category dominated by Red Bull and Monster, a pressure that could prompt board talks, negotiations or a proxy fight.