LaCroix Sparking Water was a relic of the 1990s — a beverage that seemingly died out as that decade did. In reality, consumer interest in the drink dropped. By the next decade, after some design changes (but none to its flavor, which is supposedly a winner among sparkling water lovers), LaCroix began planning its long-term comeback.
That comeback happened two years ago in 2015. There was little to no market for LaCroix in the sugary 2000s and early 2010s, when soft drinks and sweet fruit juices lined grocery store shelves and vending machines.
In 2015, though, as the nation as a whole began to eschew the damaging effects of drinking that much liquid sugar, LaCroix took a chance and reemerged. With trendy packaging, it became a millennial drink staple, as is beloved now as it was in its heyday.
As one can imagine, stocks for the drink have been quite favorable. With two years of consistent momentum behind them, 2017 has shaped up to be LaCroix’s most successful stock year in decades. The company saw an 88 percent stock increase.
Unfortunately, that’s not why the beverage company is in the news this week.
LaCroix is owned by National Beverage Corporation, or FIZZ as a trade name. According to Bloomberg, stocks in that company have fallen in October at a rate of 23 percent. Well, that didn’t sit well with Nick Caporella, the CEO of National Beverage Corporation.
Caporella, who created the company in 1985, is a ripe 81 years old, so some can excuse the fact that he went online, wrote a “press release” of sorts, and did it mostly with the caps lock on.
“What’s creating the volatility relative to the stock market with FIZZ?” he wrote. “Today less than 15% of the daily volume traded on major exchanges is financially driven by company fundamentals. Over 50% of all daily exchange volume is driven by traders gambling on fleeting price moves and stocks paired with derivatives.”
He continued, adding a touch of conspiracy to his words: “Are perpetrators stimulating self-serving movement by stating falsehoods, creating rumors and deliberately manipulating FIZZ value? We think so!”
Caporella then went on to outline National Beverage Corporation’s stock performance, calling next year’s first quarter the “BEST EVER!” and the second quarter “STEADFAST!” He also stated the company was soon to bring in nearly one billion dollars in annual revenue, stating that “consumer excitement is fueled by LaCroix’s new flavor, Key Lime, Canadian launch and new flavor introductions for Club and Drug channels!”
He went on to end the press release with quite a bang.
“FIZZ extraordinary fundamentals reflect STRONG SUSTAINED PERFORMANCE! Are high-frequency trading, BOT stampeded results, inflated short positions and…current world anxiety — stimulating strange and unprecedented circumstances? THE OBSCURE SILVER LINING IS A UNIQUELY-INDUCED OPPORTUNITY,” he said, seemingly screaming through a keyboard. “If you have the opinion that I, Nick A. Caporella, am angrily exercised while extremely fortunate to be guiding FIZZ, your opinion is quite accurate!”
That was quite an outburst and certainly an unexpected one. Caporella, for all his dedication, threw around a lot of weighty accusations, so here are some facts.
National Beverage Corporation or FIZZ has 2.1 million market shares. This number has decreased over the past year, but isn’t poor overall. FIZZ’s market value is $4.5 billion. Over the past week, there was an eight-percent decrease in shares, but the worst fall was a 22-percent slide.
An unnamed Susquehanna Financial analyst said the reason for the FIZZ stock have fallen could be because “the market for flavored sparkling water is getting crowded.”
Indeed, ownership of mineral water brand Topo Chico swapped to Coca-Cola this quarter. That purchase was responsible for the abovementioned 22-percent decrease in FIZZ stocks.
While it is indeed a crowded market that’s growing ever more crowded, LaCroix has its place among sparkling water fans. Enthusiasts who remember it from the ‘90s may feel inclined to flock to it now. Also, as mentioned, millennials favor it and order it online often.
That said, Caporella’s surprising outburst over some small stock changes may hurt FIZZ’s stocks in the near future. Many regarded his “press release” with bemusement or skepticism. Others were embarrassed for the CEO and may wonder how such a paranoid, accusatory statement could have been allowed to be put online in the first place.
Unfortunately for FIZZ, that is a very good question.
Regards,
Ethan Warrick
Editor
Wealth Authority