• 🌴 Vita Coco: Price Hikes Don’t Slow Q4, FY 2023 Sales & Volume Gains
• 😐 Zevia: Sales Up, Volume Drops in Q4, FY 2023
• 🍸Campari: Glass Half-Full After Solid Q4
• 🙋🏼‍♂️ Marketing: OLIPOP Seeks Senior Soda Consultants

The Vita Coco Company reported solid growth in both net sales and volume during Q4 2023 and FY 2023, as a focus on driving the company’s flagship coconut water into more occasions continues to drive profitability. 

Here’s a look at the top-line numbers: 

✅ In Q4 2023, net sales jumped +15% ($106 million), driven by the performance of Vita Coco coconut water (+8% net sales, +3% volume), despite higher pricing.

✅ Gross profit was up in Q4 from $23 million to $40 million, or 37% of net sales, thanks to falling transportation costs, volume growth and higher pricing for coconut water.

✅ Net income was up for both Q4 (​​$7 million) and the full year ($47 million), with Adjusted EBITDA of $68 million coming in “at the high end of our expectations,” per CEO Martin Roper.

✅ For FY 2023, net sales increased 15% ($494 million), led by the performance of Vita Coco coconut water (+14% net sales, +11% volume). Gross profit was up from $103 million to $181 million, or 37% of net sales.

Read the full recap on BevNET

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Stevia-sweetened soda brand Zevia reported a return to growth in its Q4 and full year 2023 earnings report today, moving past the worst of its supply chain difficulties last year.

📈 Net sales in Q4 were up 6.9% to $37.8 million, while the full year results rose 2% to $166.4 million.

📦 Unit sales improved in Q4, rising 3.7% to 2.8 million equivalized cases. However, volume was down by 6.9% for the full year, finishing at 12.7 million cases.

💸 The company sustained a $28.3 million net loss for 2023, a sizable improvement over the $47.6 million net loss it sustained in 2022.

🥤 The company is optimistic about innovation. CEO Amy Taylor stated during an earnings call yesterday that “each new soda item we introduce … performs better than the last.” Zevia’s brand refresh last year is now helping drive the return to growth, Taylor suggested.

Unlike its peers, Campari announced positive results during its earnings call yesterday, reporting +8.2% rise in net sales on a reported basis to $3.1 billion (€2.9 billion) in FY 2023 with a strong end to the year in Q4, driven by aperitifs, tequila and bourbon. Here’s the overview:

While lags in spirit sales have made rivals like Diageo and Pernod Ricard cut expectations for 2024, Campari is optimistic.

💰 The company reported organic growth of +10.5% in the full year, with +10.6% organic growth in the fourth quarter driven by the U.S., European and Asia Pacific markets.

📈 Operating profit reached $671 million in FY 2023, boosted by price increases, which helped to offset input cost inflation, investments, and a negative currency effect.

🇲🇽 Tequila brand Espolón (+35.7%) has become a priority for the group, and a slowdown in agave prices and inflation should have a positive impact on the business in 2024.

📆 Scheduled to close this year is Campari’s acquisition of cognac Courvoisier for $1.2 billion, and the group said more M&A could follow the deal. Analysts last year speculated that a big acquisition would go towards creating more of an edge in agave spirits.

Has Pepsi’s Blue Cloud burst already? It’s a fair question after yesterday’s news that Hard MTN Dew is expanding to all 50 states via a new distribution deal with Boston Beer Company. 

🔵 Pivoting away from distribution towards a brand licensing and flavoring sales model will help accelerate growth and accelerate nationwide penetration for brands such as Hard MTN Dew with Boston Beer and Lipton Hard Iced Tea with FIFCO USA.

🚚 According to Pepsi, Blue Cloud Distribution will transfer the distribution rights of both brands to its partners’ distribution networks “over the coming months as agreements are reached with suppliers and distributors, ensuring continued service to customers.”

🔴 The decision to try distribution caused some rifts, but Pepsi’s new model for Blue Cloud is similar to that of competitor Coca-Cola’s Red Tree Beverages, whose leadership has repeatedly emphasized that the wholly owned subsidiary has no interest in being a bev-alc distributor.

Do you have what it takes to… drink a lot of soda? For money? With all expenses covered? If so, here’s the good news: OLIPOP has announced its $40,000 “Dream Job” listing for a pair of content creator besties to chronicle their cross-country soda odyssey on social media. We have the details, plus more, in the latest marketing roundup:

🥤As mentioned above, OLIPOP is hiring two Senior Soda Consultants to travel to four unnamed major cities this spring and summer to share their love of the prebiotic pop with locals while detailing their journey through social media content. For real. 

⚡On the heels of last year’s design refresh, energy drink maker ZOA – founded by Dwayne “The Rock” Johnson – has rolled out a new campaign urging consumers to channel their BDE (Big, uh, Dwayne Energy) and exude confidence without cockiness.

🧨Nutrabolt’s C4 Energy extends its partnership with investor and comedian Kevin Hart in a new national campaign detailing how Hart fits 29 hours into a 24-hour day with a boost from the brand’s energy drinks.

Read the full roundup on BevNET.

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Kevin Lee, the co-founder of fast-growing better-for-you ramen brand immi, explained how an emphasis on community building has paid off, why the company doesn’t stress about a financial return on its investment in social media and why monthly strategy calls end with urgency about the unknown. Read the story.

Heading to Expo West? Don’t miss our unofficial guide to the industry’s biggest event. Whether you’re a first-timer or an old pro, get the lowdown on the lingo, learn which faux pas to avoid on the show floor, and follow our resident germ ninja Ray Latif’s tips for staying healthy while mingling with 80,000 of your closest friends. It all drops March 4 at Nosh.com.