Zevia PBC (ZVIA) FY Conference Transcript

Zevia PBC (ZVIA) FY Conference Summary Company Overview - Company Name: Zevia PBC (ZVIA) - Industry: Beverage, specifically the better-for-you soda category - Founded: February 2008 by a husband and wife concerned about harmful additives in traditional sodas [3][4] Core Business Insights - Market Position: Positioned at the intersection of health and taste, with a focus on zero sugar, zero calories, and no artificial ingredients [4][6] - Consumer Loyalty: Strong consumer loyalty with repeat purchase rates; household penetration is only 5.1%, indicating significant growth potential [5][31] - Distribution: Over 37,000 distribution points, with plans for expansion in grocery, club, and mass channels [13][27] Financial Performance - Recent Growth: Achieved 10% top-line growth compared to Q2 last year and reached positive adjusted EBITDA for the first time as a public company [15][31] - Cost Savings: Identified $20 million in cost savings, with $15 million expected to be realized by year-end [30] Market Trends - Consumer Preferences: Shift towards reducing sugar intake and a focus on natural, high-quality ingredients; better-for-you soda is growing at five times the rate of conventional soda [16][17] - Market Size: The total carbonated soft drink market is valued at $57 billion, with better-for-you soda driving growth [17] Marketing and Brand Strategy - Marketing Spend: Increased marketing budget from 6% to 12% of revenue, focusing on brand awareness and engagement [34][19] - Recent Campaign: National ad campaign featuring artist Jelly Roll generated 2.4 billion positive media impressions [20][19] - Brand Positioning: Emphasizes authenticity and accessibility, aiming to appeal to a broad demographic [6][8] Product Innovation - Product Line: Focus on nostalgic flavors and a nascent energy drink line; recent successful launches include Strawberry Lemon Burst and Orange Creamsicle [11][22] - Taste Profile Improvement: Enhanced stevia blend to minimize aftertaste, leading to positive consumer feedback [24][52] - Limited Time Offerings (LTOs): Seasonal flavors like Salted Caramel have driven excitement and engagement [23] Distribution Expansion - Retail Partnerships: Recently expanded presence in retailers like Walgreens and Costco; significant opportunities in convenience and foodservice channels [28][29] - Modern Soda Sets: Retailers are increasingly adopting modern soda sets, creating favorable conditions for Zevia's growth [28][41] Profitability Goals - Path to Profitability: Aiming for accelerated growth and profitability by 2026, leveraging marketing, product innovation, and distribution strategies [31][30] Additional Insights - Consumer Demographics: Better-for-you soda shoppers tend to be younger, more affluent, and health-conscious, willing to pay a premium for healthier options [17][18] - Competitive Pricing: Priced at a slight premium to traditional sodas but significantly lower than other better-for-you brands, maintaining accessibility [36][37] Conclusion - Future Outlook: Zevia is well-positioned in a high-growth category with a distinct market position, strong consumer loyalty, and multiple growth levers to drive profitable growth [31][31]