Zevia PBC (ZVIA) Goldman Sachs Global Staples Forum summary

Growth and pricing

• FY23 net sales growth guidance remained 10%-16%; drivers include pricing, organic velocity, distribution gains and increased retail space.

• A 10% price increase was taken in Aug 2022 and a further 5% increase rolled into the market in 2023; affordability remained at the 36th-37th percentile among single-serve non-alcoholic beverages.

• Volumes were down 2.7%, while net sales were up double digits; management expected brand refresh and repositioning to help restore volume.

Brand and distribution

• The refresh adds a modern, premium look and clearer emphasis on taste, zero sugar and clean ingredients; retailers responded positively and the new packaging helped win shelf space.

• New website, social media and local sampling were planned for end-June 2023; selected metro advertising was planned for July and August, with test markets to inform 2024 investment.

• Household penetration was 6.4%; management saw potential to reach 20%-40% over time, depending on distribution expansion across food, mass, club, drug and convenience.

• 65% of club purchasers in the prior 12 months were new to the brand; shoppers entering through club spent more at grocery than the typical shopper.

Portfolio and category opportunities

• Pack mix was a Q1 tailwind and expected to support sales and profit through the year; singles were less than 10% of the business, the fastest-growing segment and margin supportive.

• Energy marketing was planned for H2 2023, with the largest distribution opportunity expected in spring 2024; management characterized the category as incremental.

• Immediate-consumption channels, including convenience and food service, were identified as major opportunities for trial and distribution expansion.