Is the Incredible Growth of Bottled and Sparkling Water Sustainable?.
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David Kretzmann: I’m going with bottled and sparkling water.
Kretzmann: They also have the Powerplus brands segment, and the main driver with that is LaCroix, however you want to say that.
A little boots on the ground research here, our local Whole Foods near us at HQ, any time you walk in, there’s often a huge LaCroix display, either at the front of the store or at a pretty prominent location in the store.
And I’m leaning more toward it being a trend, because I think as people become more health-conscious, they probably aren’t going to go back to soda any time soon.
Maybe sparkling water drinkers would be drinking soda otherwise?
Kretzmann: I think a lot of people who are trying to transition out of soda will go to LaCroix or sparking water.
But I look at that sales growth, and over the past year, their sales growth has accelerated to 15%, and their earnings are up over 70%, so their margins are continuing to tick up.
So, it’s that LaCroix brand, for National Beverage, anyway, is driving those sales.