Zevia gains household penetration while riding out temporary inventory management issues

Zevia reported a net sales increase of +13.6% to $44.2m in the third quarter ended Sept. 30, 2022 and +2.3% in volume growth compared to the same period last year. The company recorded net losses of $9.2m (a 37.8% reduction from last quarter) including $6.8m of non-cash equity-based compensation expenses.

From a broader category perspective, Zevia grew +19.8% in measured scan dollar sales for the quarter vs. the same quarter last year, continuing to outpace Total Non-Alcoholic Beverages growing at 12% and Total CSDs at 14%. 

“The Zevia shopper is a highly desirable shopper, less price sensitive at all income levels, who demonstrates resilience in a fluctuating economy,”​ said Zevia CEO Amy Taylor on the company’s Q3 2022 earnings call. 

“We remain a home stocking brand, which continues to fare well from a consumer and brand health perspective, winning new consumers and sustaining household spending levels.”

More Zevia households

The increase in sales and volume has translated into more Zevia-buying households who are increasingly trading up their purchases in the form of larger pack sizes.

Zevia’s household penetration grew from 6.1% in Q2 2022 to 6.3% in Q3 2022, a total of 1.3 million more households purchasing the Zevia brand vs. the same quarter last year driven by the company’s push into the club channel. Taylor shared that 70% of buyers purchasing Zevia in club stores over the last 12 months were new to the brand.

“They discover their favorite flavor through a variety pack in club and then buy that straight flavor 12-pack in grocery. So, it’s been a highly incremental and sticky channel for us and well worth the investment,”​ said Taylor.

Source link

We will be happy to hear your thoughts

Leave a reply

Enable registration in settings - general
Shopping cart