Rockstar Energy founder builds Celsius stake, wants to take over as CEO — SkimNews
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- Russ Savage now controls more than 12 million Celsius shares — roughly 4.7% of the company, worth about $300 million at current levels — and is calling for the firing of CEO John Fieldly, the COO, the brand manager, and the marketing manager.
- Celsius's Q2 results missed across the board: EPS of 36 cents versus 43 expected, revenue of $817.9 million versus $870 million expected, and net income that fell by more than half year-over-year, sending shares down 18% on Thursday.
- Savage began accumulating his current stake in March when Celsius traded in the low $30s; shares now sit near $28 after a sharp Friday rebound on news of his position.
- CEO John Fieldly pinned the shortfall on a product rationalization program and the ongoing integration of last year's $1.8 billion Alani Nu acquisition and the Rockstar brand it acquired from Pepsi for U.S. and Canada.
- Savage warned that Celsius's apparent decision to surrender shelf space during that rationalization is potentially fatal, saying chains will hand that space to Red Bull or Monster and that 'once you lose shelf space, you're dead.'
- Celsius said it welcomes 'potentially value-creating' input from all shareholders and noted that board members and management have met with Savage 'many times over the past several years.'
Why it matters: Savage's roughly $300 million position from a founder who built and sold Rockstar for over $4 billion gives him real leverage as Celsius navigates integrating two major acquisitions. Fieldly now faces a public challenge to his credibility from a shareholder who says he is 'volunteering' to take the CEO job himself — with the stock down roughly 38% from where Savage started buying in March.
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