Jack Owoc, the controversial CEO and founder of Bang Energy maker Vital Pharmaceuticals, is out as the company’s chief executive and chief science officer, and from its board of directors, where he had served as chairman. John C. DiDonato, Vital’s chief transformation officer, has been appointed interim CEO in addition to his existing role, effective immediately.
The company announced the move in a brief press release issued close to midnight Eastern Time on Thursday.
“On behalf of the Board of Directors, we acknowledge Jack’s vision in founding this leading brand and creating a world-class product in the energy drink category. As the Company continues to pursue value maximization, we are grateful to Mr. DiDonato and the executive leadership team for their stewardship and to the talented and hard-working members of the Bang Energy team for their unyielding commitment to the brand,” said Steve Panagos, Chairman of the Board.
The release does not specify what potential role, if any, Owoc may play in the company’s future, but specifies that he will “no longer serve in his current role.”
According to the release, DiDonato is the National Practice Leader and Managing Director at Huron Consulting Company and brings “more than 35 years of experience leading companies through complex financial and operational transformations.”
As part of the restructuring, Gene Bukovi has also been elevated to the position of Chief Operating Officer.
Though his career in CPG and supplements precedes Bang, Owoc’s brash personality and management style have been a core element of the brand’s identity during its prodigious rise over the past decade, eventually becoming the third-largest energy drink behind Red Bull and Monster, as well as inspiring a new wave of workout-oriented, high-caffeine beverages. His approach has also snared VPX in multiple litigation cases, including ones in which he has been accused of misleading consumers about the ingredients and functional benefits in Bang drinks.
The company’s future was put into doubt after it declared bankruptcy shortly after a jury sided with Monster Energy Co. in its false advertising lawsuit against VPX in California federal court in September, awarding the company nearly $293 million in damages. Monster is currently seeking a further $167 million in punitive damages, lawyer fees and unjust profits.
In the months since, Owoc has touted Bang as being on track to complete “the greatest comeback in beverage history” by rallying around new products, formats and independent distribution partners. However, CPG veteran Kathy Cole, who joined Bang as COO in October to oversee the “integration of a new high-performance operations model,” departed the company within months. Meanwhile, several large chain retailers have reportedly stopped carrying Bang.
Last week, the South Florida Business Journal reported that Vital Pharmaceuticals is expected to be sold during a U.S. Bankruptcy Court auction April 27 and a May 10 hearing to approve the results of the auction. Investment bank Rothschild & Co. is reportedly shopping the company to potential buyers. VPX has until March 24 to select a stalking-horse bidder.
This is a developing story and will be updated as more information becomes available.