WASHINGTON, D.C. — Australian war‑hero turned entrepreneur Ben Roberts‑Smith has partnered with Zero Limits Supplements, a gym‑nutrition firm co‑owned by right‑wing podcaster Chris Katelaris, sparking market scrutiny as the company previously sold a pre‑workout named “war crimes.”

Roberts‑Smith, who was awarded the Victoria Cross for Australia, launched his apparel label Epic 1 Two in March, offering T‑shirts and gym wear aimed at veterans and fitness enthusiasts. The label will be sold through Zero Limits’ online store and at its chain of 12 Australian gyms. The partnership was announced on the influencer’s Instagram on Tuesday, noting that a portion of proceeds will support a veterans’ charity.

The announcement triggered a sell‑off in Zero Limits’ parent company, Zero Holdings Ltd (ASX: ZHL), whose shares slipped 4.2% to A$1.87 by mid‑day trading, erasing roughly A$45 million in market value. By contrast, the broader Australian market rose 0.3% on the same session, underscoring the isolated nature of the backlash.

Analysts say the controversy could widen the risk premium on stocks linked to politically exposed persons, especially as the U.S. Federal Reserve’s latest rate‑hike cycle fuels global market sensitivity. “When investors see reputational risk tied to a high‑profile legal case, they tend to demand higher returns,” said Laura Chen, senior market strategist at Global Equity Partners.

Roberts‑Smith’s legal team declined to comment, while Zero Limits issued a brief statement saying the “war crimes” supplement was discontinued in 2023 after a regulatory review. “We remain committed to compliance and transparency,” the company said, adding that the new apparel line complies with all Australian consumer‑protection laws.

Key Takeaways

• Reputational risk from the collaboration has pressured Zero Limits’ share price, down 4.2% on the news.
• The venture adds a new revenue stream for Roberts‑Smith’s Epic 1 Two brand but may deter risk‑averse investors.
• Fed‑driven market volatility amplifies sensitivity to political and legal controversies in equity markets.

The episode highlights how personal‑brand alliances can affect market sentiment, especially amid heightened scrutiny of corporate governance and an environment of tightening monetary policy worldwide.