This spring’s crop of public company earnings offered a mixed bag of results, as large players struggled, smaller brands soared, and “economic uncertainty” was the phrase of the month. As we close the books on Q1, here’s some of our main takeaways.
Energy Slow, Plant-Based Fast Out the Gate. Energy drink makers reported slow starts to 2025, with both Monster and Celsius posting Q1 revenue declines.
- Monster has been battling supply chain headwinds for multiple months and its core energy drinks – including Bang and Reign – fell during the quarter.
- Celsius – fresh off its acquisition of Alani Nu – said revenue was down 7% in Q1, including a 10% dive in North America.
The energy category has experienced a multi-year boom since the late 2010s, but the period of consistent double-digit category growth may now be behind us, with Celsius leveling out after an impressive ramp that cemented it as the number three U.S. energy brand.
Pricing action is likely to come, both to push growth and mitigate the effect of tariffs. But even if the category’s leaders plateau (for now), it’s worth remembering energy is still immensely popular with young consumers.
Meanwhile, plant-based brands like Vita Coco and Oatly kicked off the year in shows of strength. Oatly promised it was on track for its first profitable year in 2025, and Vita Coco posted a healthy 17% net sales boost. Others, such as SunOpta and Laird Superfood, had similarly positive results to open the year.
Tariff Troubles. Speaking of tariffs, “global economic uncertainties” loomed heavy over many of the past month’s earnings reports, particularly for brands that are deeply reliant on importing ingredients like Vita Coco and Black Rifle Coffee Company.
- Despite admitted uncertainties, many executives projected confidence that they would be able to manage – well, at least if the policy remains at a 10% flat tariff (and there’s no guarantee).
At the top manufacturers, strategics had differing attitudes to the days ahead…
- PepsiCo CEO Ramon Laguarta said they’re “actively planning mitigation actions” to deal with spiraling supply chain costs.
- Coca-Cola was a tad more nonchalant, expecting the coming months to be “choppy” but “manageable.”
- The term “wait and see approach” came up multiple times across calls, though some execs, such as Laird CEO Jason Vieth, said that price increases could be in the pipeline as a last resort.