Zevia(ZVIA.US) becomes a hot stock in the beverage industry as consumers favor sugar-free products
1min read Zevia PBC(ZVIA.US), the no-sugar beverage maker, saw its stock soar over 25% on Monday to its highest level since January. Zevia is the biggest gainer in the beverage industry over the past six weeks, up 72%.
Zevia PBC is expanding its distribution at Walmart(WMT.US) from over 800 stores this month to 4,300 stores nationwide. Zevia CEO Amy Tyler said: "Our exciting expansion with Walmart is built on years of insight-based efforts to better understand and more clearly define the better-for-you soda category - past, present and future."
During the company's earnings call, Zevia management expressed confidence in strong sales seen through its key strategic channels in the third quarter. Scanner data from the grocery channel showed a 8% increase in dollar sales and a 9% increase in volume. Consumers have responded strongly to Zevia's new flavors.
Looking ahead, Zevia is optimistic about the development of the health soda market, noting that it is expected to grow three times faster than the carbonated beverage market over the next five years. "Through expanded marketing, focused distribution expansion, and product innovation, we believe we have the ability to be the long-term leader in the natural soda market. We are laying out a clear path to reaccelerate growth and significantly improve adjusted EBITDA," Tyler emphasized.
