Sugar-free soda maker Zevia filed for an IPO today to list on the New York Stock Exchange. The California-based company has applied to list under the ticker symbol ZVIA.
The company has retained Goldman Sachs & Co., Bank of America Securities and Morgan Stanley to serve as lead bookrunning managers for the proposed offering. Stephens Inc., BMO Capital Markets and Wells Fargo Securities will act as joint bookrunners. The filing does not state how many shares Zevia will offer and does not give an estimated public offering price.
Founded in 2007, Zevia produces zero calorie soft drinks naturally sweetened with stevia. In addition to sodas, the company also produces energy drinks, iced teas, cocktail mixers, kids fruit drinks and sparkling waters. In 2010, the company was purchased by Paddy Spence, who currently serves as chairman and CEO. In March, Zevia was incorporated as a Delaware public benefit corporation and is also a certified B Corp.
Speaking to BevNET today, Spence said that he believes the company’s B Corp certification and focus on zero calorie beverages positions the company for the market. He noted that consumers reducing their sugar intake is a global phenomenon.
“We believe that our positioning as a B Corp that’s focused on the global challenges of sugar, plastic and affordability in an important message when combined with our products and their leadership position in the channels in which they compete,” Spence said. “And so really, it’s the ability to continue our social impact mission.”
Spence said that in addition to being zero sugar and sustainable through its focus on using recyclable aluminum packaging, Zevia has also benefited from being broadly affordable, noting that the brand is in the 37th percentile of price per ounce. The brand, he said, has “a really strong value structure” that appeals to a broad range of consumers.
According to the filing, Zevia reported $110 million in net sales in 2020, up 29% from 2019, while gross profit grew 34% to $49.6 million. In 2010, Zevia earned just $7 million in net sales, representing a 10-year compound annual growth rate of 32%.
The company reported retail dollar sales of $128 million in 2020. As of last year, Zevia was sold in 22,043 stores, up from 18,136 locations in 2018. Average retail sales per store rose to $5,789 in 2020, up from $4,204 in 2018.
Zevia is outpacing the broader zero calorie CSD category, up 25% in the 52-week period ending May 16, compared to 9% growth for the category, per SPINS data shared by the company.
In December, Zevia raised $200 million in a minority investment from Canadian firm Caisse de dépôt et placement du Québec (CDPQ), which the company planned to use to fuel a global expansion. However, Spence said today that Zevia has not yet expanded outside of the U.S. and Canada.
Spence also suggested that the company was considering going public, telling BevNET at the time of the investment that CDPQ supported an IPO.
In addition to the public offering, Zevia announced that it has brought on former Red Bull North America president and CMO Amy Taylor to serve as president, beginning Monday, and as a member of the board of directors. Boston Beer Company SVP of supply chain Quincy Troupe has also been added to the board of directors.
Taylor previously spent two decades with Red Bull North America, including two years as president and CMO, but was fired from the company amid controversy over its lack of a public statement in response to the murder of George Floyd in 2020. In addition to overseeing the energy drink’s marketing, Taylor has been a longtime advocate for social justice and founded Red Bull’s Inclusion and Diversity initiative as well as serving as an executive committee member for The Trevor Project.
Troupe has served as SVP of supply chain at Boston Beer Company since 2016 and previously held leadership positions at Campbell Soup Company and Mars. Spence noted Troupe’s role in “nurturing” innovative product launches at Boston Beer, highlighting his work on the Twisted Tea and Truly Hard Seltzer brands.
“Bringing on Amy and Quincy to our board, and Amy to our leadership team, is also indicative of our commitment to this business and leverage talented experts from the bigger beverage industry,” Spence said.
Zevia’s filing follows a number of recent public filings by health and wellness focused food and beverage companies, including Oatly, Flow Alkaline Spring Water, Laird Superfood and Beyond Meat. Last week, media reports suggested Vita Coco parent company All Market Inc. is currently exploring an IPO and could file within the next few months.