International superstar Flo Rida played an instrumental role as the worldwide brand ambassador and launched a new era for Celsius brand development, growth, and expansion. At the time, even Celsius’ top management publicly recognized that the partnership between Flo Rida and Celsius accelerated the introduction of the Celsius brand to millions around the world and allowed Celsius to finally succeed at new levels.
This partnership by D3M paved the way for Celsius to grow its product portfolio (powder product, Celsius Heat, etc.) and expand its product distribution channels to include new key national/regional retailers, such as GNC, 7-11, Vitamin Shoppe, and others. From a financial perspective, Celsius was able to exponentially increase revenues and sales, attract key investors, and upgrade its financial status — all of which ultimately led to the important transition into the Nasdaq market in mid-2017 and the company’s upward success. Indeed, the enduring impact of Flo Rida’s endorsement is
Strong Arm Productions USA, Inc.
(“Strong Arm”), Tramar Dillard (“Flo Rida”), and D3M Licensing
Group, LLC
apparent even today by more recent recognition from current chart-topping music stars, like Doja Cat, who still publicly refer to Celsius as “Flo Rida’s drink.”
In contemplation of the highly influential and ongoing impact of this endorsement partnership with Celsius, the compensation provisions of the endorsement agreements between the parties called for payments in the form of bonus compensation, incentive compensation, and royalties. While certain guaranteed payments were due at contract inception, others became due from Celsius later at various specified intervals or upon reaching certain benchmarks.
Since compensation was based directly upon specified sales/revenue benchmarks, Flo Rida’s people relied on Celsius to act in good faith, to promptly issue stock per the contract, and to pay any earned royalties. But whenever the Plaintiffs asked about such compensation, Celsius would give Plaintiffs a grim assessment of powder product sales without providing any actual data to back it up. Former Celsius CEO, Gerry David, recalled having “several conversations” with Plaintiffs in which he “consistently represented” to them that the products were “failing miserably.” But since the lawsuit it turned out the Powders were doing just fine – didn’t change the ingredients or formula (just removed Flo Rida from the package).
Contrary to Celsius’ dire portrayal of sales, its powder sales were in fact steady and growing over the years and the powder “on the go sticks” currently remain within its product. Celsius claims Plaintiffs waited too long to assert their claims, denies that the benchmarks were met, and attempts to disclaim the beneficial impact that Flo Rida played in the company’s turnaround. The trial is scheduled to begin on January 10 in Broward county, Florida.
