Pamplemousse problems... Flavored sparkling water LaCroix has become the spirit drink of youthfulness — Millennial-powered anti-soda consumption pushed parent National Beverage Corp's stock to an all-time high in 2017 (FYI, great stock ticker: “FIZZ”). It has lost half its value since then, summed up by this stat:
Sales of sparkling water rose 16% in the US from Nov-Jan — but LaCroix’s sales fell 2%.
Pour some Pepsi on the wounds... Some banks decided to weigh in on issues the icon of calorie-free refreshment is facing. It's mainly competition. Lots more competition:
- Bank #1: Thinks sales will “significantly decelerate,” so it downgraded the stock.
- Bank #2: Thinks LaCroix’s getting bullied by soda — Pepsi's sleek Bubly is winning market share, while Coke is pumping out sparkling versions of Dasani and SmartWater.
- Highlight: Texas-based Topo Chico is a fast-growing LaCroix-replacement that's gaining liquid ground.
- Side Note: In March, National Beverage's colorful CEO blamed its sales drop on "injustice."
LaCroix's gone flat on the big stage... Before sparkling water became the avo toast of drinks, National Beverage shares grew 7-times larger from 2014 to 2018. Now LaCroix is struggling to distribute itself. Its Coke/Pepsi competitors are filling up convenience stores where LaCroixs aren't. If you're not on the shelf, you can't be bought.