LaCroix sales are "free-fall", writes Guggenheim Partners beverage industry analyst Laurent Grandet in a report released Thursday.
Seltzer brand sales were eventually reduced by 15 percent in May, having fallen 7 percent in April, 5 percent in March and 6 percent in February. The share price of La Croix's parent company National Beverage fell 10 percent this week and has fallen 62 percent since September last year.
Grand's analysis of the situation is dramatic, noting that the "LaCroix brand has gone from bad to worse to catastrophic in a relatively short time."
But it is hardly a mystery why: There are apparently unlimited opportunities for seltzer now, and most are not from companies that are scandal scandal.
The LaCroix brand is more than 30 years old and has long held to moderate popularity in the Midwest. Around 201[ads1]5, as reported by Vox Libby Nelson and Javier Zarracina, the retro aesthetic and fun brand won a brand new audience:
A little before the girls wearing "LaCroix's Over Boys" T-shirts this summer turned into And with the birth, LaCroix was loved by health conscious, budget-wise women in Central America. They knew a good thing when they found it, and they were a loyal audience. But most trends trickle in from the coast to the Midwest, not the other way around, and so LaCroix's first 30 years was used under the radar.
As soon as in 2015, LaCroix – lightly flavored, sugar-free carbonated water wrapped in a garish can – became an unlikely breakout hit. The New York Times published an essay raving about it. Awl and Time Out New York ranked their flavors. If you say "LaCroix" to a young town builder, be ready for a possible explosion of enthusiasm, as if you had shaken a box of carbonated water.
Of course, LaCroix's success led to competition. Everyone wanted a bit of the seltzer market – or a "part of the neck", as is the expression in the beverage industry, which I wish I didn't know.
In 2017, Coca-Cola bought the same trendy Mexican putty water Topo Chico (long super popular in the US south, especially among urban youth). Pepsi launched its own Bubly brand of sparkling water, and the more tasteful Spindrift won favor among the same demographics that made LaCroix a stick. Seltzer is evolving – you can buy it infused with alcohol or CBD. Millennials like flashing embraced normcore aesthetics by LaCroix have moved on (or back) to classic Polar.
LaCroix does not evolve, argues Guggenheim's analyst, and is really quite poor. For one, it is currently the subject of a complaint action. While LaCroix stands out as "completely natural", the complainants claim that it contains artificial ingredients, including linalool, used in cockroach insecticide. "(Linalool, but not necessarily natural, found in 63 different spices and often used in food and beverages, according to the National Institutes of Health.) The company's official response to this lawsuit included tweet storms and asked customers to come to their aid.  "We are proud to serve LaCroix to our families, in our hospitals and in our schools," the official @ lacroixwater account tweeted . "Please contact us when we defend our beloved LaCroix "This was shortly after the National Beverage 83-year-old billionaire director Nick Caporella was accused of sexual neglect by two pilots working on the airline. Both said he had touched them inappropriately on dozens of flights. LaCroix's reaction on this legal question was also strange: A press release from the company with the word "NEWS" written on the top of the American flag overlaid, which called pilots stories "defamation" without To confirm information other than a quote from a board member who said, "I have known Nick for over 40 years and I find these claims to be incredible."
In March, when National Beverage released a poor quarterly report for 2018, the one with this widely commented explanation:
"We are really sorry for these results mentioned above. Negligence or misunderstanding or godless acts from God were not the causes – much of this was the result of injustice! … Managing a fire is not so different from caring for someone who becomes disabled. "
(Reached for comment at that time, a spokesman Vox told," What he said was that loving care gives someone with special needs what he does every day with the company. ") All this is at the top of Caporella's political ranger, which is usually almost impossible to analyze, but sometimes involves elaborate metaphors about Barack Obama's many flaws.
Although LaCroix has long referred to its customers as "our cult", it does not appear to be have as much customer loyalty as it once thought.
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