NASCAR News: Kyle Busch Set to Suffer Another Colossal Loss as Rowdy Energy Draws the Curtain on Energy Drink Operations

Kyle Busch has had a rough start to 2024. Following a harsh week at the Tulsa Shootout at the beginning of the year, the two-time Cup Series champion received more bad news soon after. Reputed journalist Adam Stern reported that Busch’s brainchild and energy drink company, Rowdy Energy, is set to shut down operations at the end of January 2024. Busch later confirmed the news in a social media post.

Rowdy Energy has gained much traction within the sporting community since its inauguration in 2020. Busch used the platform and popularity at his disposal to slowly build the brand. With its growth, the company branched out to several flavors and was endorsed by athletes from different sports. While the exact reasons for the shutdown are yet to be disclosed, this will undoubtedly be a big loss for the Richard Childress Racing driver.

Kyle Busch said “The headwinds have proven to be too strong” as Rowdy Energy shuts down

Along with beverage industry-based entrepreneur Jeff Church, Kyle Busch laid the foundation for Rowdy Energy in 2020. The brand expanded its presence by selling its products in stores across America. Kyle Busch also used the launchpad of his exclusive membership, Rowdy Nation, to promote the energy drink among his fans. As the popularity of Rowdy Energy grew, fellow racers like Rico Abreu and John Hunter Nemechek also promoted the brand. Among athletes from other fields, St. Louis Cardinals player Ivan Herrera once flaunted a can of Rowdy Energy on his Instagram handle.

However, the three-year journey has ended, and the shutdown details will be disclosed soon. This will be a tough decision for Kyle Busch, especially after the two-time NASCAR Cup Series champion sold Kyle Busch Motorsports and Rowdy Manufacturing to Spire Motorsports. in 2023. Meanwhile Busch in a post on X announced the decision to shut down Rowdy Energy.

He wrote, …“I’m here to say that Rowdy Energy will be ceasing operations and closing its doors in the coming weeks. Like many other new consumer brands, the headwinds have proven to be too strong and it makes the most sense to end the journey so I can remain focused on my family and my racing career.”

Kyle Busch had a good follow-up to the year after sealing renewals with essential sponsors like Cheddar’s Kitchen and Lucas Oil. While his dynamic with RCR has not taken a hit, his off-track deals have been falling out of order. The NASCAR community will speculate about the reasons for the closing of Rowdy Energy’s operations, with one of the reasons being last year’s controversy about false endorsements.

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A lawsuit over false advertisements had rocked Kyle Busch and Rowdy Energy

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In 2023, consumers of Rowdy Energy filed a class action lawsuit against Rowdy Energy Power Burn drinks. They complained that despite the company claiming that the energy drink is free of preservatives; it contained additives and falsely advertised itself.

While Rowdy Energy endorsed the motto ‘No Preservatives’ on its product, Power Burn, it was found to contain citric acid and ascorbic acid. These two ingredients are often used to preserve foods in the industry. The lawsuit claimed that the claim from Kyle Busch and Co. was misleading its consumers and lured them into using the product with the false claims of additive-free drinks.

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It is yet to be known if the lawsuit is a major reason behind the shutdown of Rowdy Energy. However, it surely leads to the list of possible reasons for Kyle Busch to give up on a successful brand. With strong financial resources and smooth operation, operational problems are a less likely answer.