Solo Brands has dumped its CEO after a huge ad campaign for Solo Stove featuring rapper Snoop Dogg failed to bring in sales.
The company launched a high profile ad campaign in November which caused social media users to erupt after Snoop Dogg was seen in a video saying that he decided to “give up smoke.”
Many interpreted that as the 52-year-old announcing that he was giving up his pot habits. But it turned out that he was just joining Solo’s ad campaign for its line of smokeless woodburning stoves.
Now, Solo, maker of Chubbies, Oru Kayak, Isle, and other brands, is switching up CEOs after the rapper’s viral marketing campaign failed to result in any increase in revenues, according to The Daily Outdoor Retailer.
This week, Solo announced that former Vista Outdoor CEO Christopher Metz has been appointed as its new president, chief executive officer, and director of the board, starting Jan. 15.
The board noted that ex-CEO John Merris will “mutually separate” from the company as Metz takes over.
Snoop’s ad campaign was hailed as a big success. Ad Age ranked the campaign as #18 on its list of the 40 Best Ads in 2023, bringing Solo 60,000 new social media followers in the wake of the campaign.
But proving that social media is not the same as real life, the 60,000 new social media followers apparently did not result in bigger sales.
“While our unique marketing campaigns raised brand awareness of Solo Stove to an expanded and new audience of consumers, it did not lead to the sales lift that we had planned, which, combined with the increased marketing investments, negatively impacted our EBITDA [earnings before interest, taxes, depreciation and amortization],” Interim CFO Andrea Tarbox said in a statement. “We believe there is a significant opportunity for us to build awareness and that these new campaigns will expand our reach and benefit our brands over the long term.”
The company also downgraded its earnings speculation from $530–$540 million to $490 million–$500 million.
“Our fourth quarter results came in below expectations as we experienced softer-than-anticipated sales in our direct channel,” Tarbox added.
Former Vista Outdoor CEO Metz is credited with helping the company raise revenues last year and Solo is hoping he can achieve similar success for them.
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