logo-loader
viewNational Beverage Corp

National Beverage misses on 2Q estimates as it combats LaCroix seltzer scandal

A class-action lawsuit alleged that LaCroix contained an ingredient that was also found in roach poison

LaCroix seltzer cases in a row
LaCroix sales in the US reportedly increased by 667% between 2012 and 2018

National Beverage Corp (NASDAQ:FIZZ) reported disappointing fiscal second-quarter earnings in the aftermath of a seltzer scandal.

The beverage company reported earnings of $0.88 per share compared with $0.72 per share in the previous second-quarter, but it came below consensus estimates of $0.92 per share.

Class action lawsuit filed in Chicago​

Quarterly revenue totaled $260.71 million compared with $244.12 million a year ago, just slightly missing analysts' estimates.

CEO Nick A. Caporella admitted that an “outrageous and unfounded lawsuit filed October 1st severely affected shareholder value.”

READ: Johnson Outdoors’ fishing business holds up in ‘seasonally slow’ fourth quarter

A class-action lawsuit was filed in Chicago alleging that the company’s carbonated favorite LaCroix was not as “all natural” as the company had claimed and contained an ingredient that was also found in roach poison.

LaCroix sales in the US have skyrocketed in recent years, increasing by 667% between 2012 and 2018, according to a Quartz report.

“The strength of our brand and the support of our consumers allowed LaCroix to successfully weather storms directed against it and the industry in general,” said Caporella in the company’s press release.

Caporella ended the release with a show of gratitude to LaCroix fans who stood behind the brand.

Shares of LaCroix were up around 3.5% to $87.28 in Friday morning trading.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

Quick facts: National Beverage Corp

Price: 54.06 USD

NASDAQ:FIZZ
Market: NASDAQ
Market Cap: $2.52 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Minera Alamos announces 14-million-dollar deal with Osisko Gold Royalties to...

Minera Alamos (CVE: MAI) President Doug Ramshaw joined Steve Darling from Proactive Vancouver on Skype with details about a deal they have signed with Osisko Gold Royalties to help fund construction on their Santana project in Mexico. Ramshaw telling Proactive how the deal will work and the...

2 days, 1 hour ago

2 min read