NZ Muscle controversy: New CEO Dave Letele under fire from all angles

Following a large string of controversy surrounding Kiwi supplement brand NZ Muscle, the business announced a new CEO in David Letele - but the heat is still on from the group that sparked the conversation with their independent YouTube investigation. 

Letele spoke in an interview with Stuff’s Samantha Hayes earlier this week, telling her he wants to rebuild trust in the supplement company after it came under fire over alleged food safety and compliance issues.

In the initial video created by the YouTube group Kino House Investigates, multiple claims are made, including: Not disclosing expiry dates in sales, hiding legitimate negative customer reviews, making misleading ‘high protein’ claims on their product, relabelling products and unhygienic/unlicensed manufacturing and packing practices.

The company later recalled a number of products and offered refunds, while investigations by the Ministry for Primary Industries (MPI) and the Commerce Commission were revealed to be looking into some of the allegations made against the company.

Why did Dave Letele agree to NZ Muscle CEO position?

Speaking to Stuff, Letele said he initially had no intention of taking on the role - but changed his mind because he wanted to help protect the company’s 35 staff and customers.

“Everyone was telling me not to,” he said, adding that sales had dropped significantly and products were being heavily discounted.

“The people who buy from NZ Muscle, they deserve a fair go. The people here, the staff who rely on NZ Muscle to pay their rent, put food on the tables, they deserve a fair go. And that's what I'm about.”

He confirmed he will take a 10% stake in the company and replace founder Dion Roosenbrand as CEO. Roosenbrand will remain the majority owner but said he was stepping aside.

‘You don’t buy trust, you earn it’

Letele, who previously publicly announced he had removed NZ Muscle products from his gyms while concerns were being investigated, said he understands why customers are frustrated.

Letele said one of his first steps will be meeting with staff, suppliers and manufacturers to understand what went wrong.

“I’m under no illusions this will be tough; it will be a hard job… I told Dion he can’t just bring me in and think that is going to buy trust. You don’t buy trust, you earn it, and I’m looking forward to earning back New Zealand’s trust in NZ Muscle.”

Documentary makers react to CEO change and call for transparency

Cameron Boot, who worked on the documentary and is also the co-founder of a supplement company, responded to the change of leadership on Instagram.

He questioned whether the issues went beyond the recalled products and claimed there were wider concerns around other products and practices at the company.

“This really makes no sense,” Boot wrote.

“Surely Dave knows that it isn’t just the recalled creatine that’s in question? We have 2D NMR test results that support witness statements from NZ Muscle employees that the NoBrand Isolate & Whey+ were illegally and unhygienically repackaged, expired and about to expire foreign protein sold to YOU as made in NZ from grass-fed NZ whey, with an extended expiry date,” he added.

Where’s the transparency we were promised?

Letele responded to Boot, saying he didn’t want to get himself involved in a public back-and-forth.

“Cam, don’t attack my character. I’m not going back and forth on that - my work speaks for itself. I’m focused on doing right by our people, that’s where my energy’s going.”

Boot later claimed Letele had blocked him and documentary partner Jordan Federici after they called for further transparency.

“We were told that transparency is what Dave was finally bringing to NZ Muscle,” Boot wrote.

Federici also addressed the situation in a follow-up post of his own, saying he and Boot did not want threats directed towards Letele and that their focus had always been on accountability from the brand itself.

“Don’t be an idiot by making threats to Dave Letele or Cam Boot,” he wrote. “By doing that, you degenerate the entire situation from business and accountability.”

Federici said he hoped Letele succeeds in the role but encouraged customers to make their own choices while the investigations continue.

“Vote with your dollar, spend it with retailers who actually stand by their word and by you.”

Letele told Stuff he plans to be transparent throughout the process and ensure NZ Muscle is “1000% compliant” with regulatory standards moving forward.

The MPI and Commerce Commission investigations are still ongoing.