- July 23, 2021
- Posted by: Stratford Team
- Category: Business
Los Angeles-based Zevia has been on the market since 2007, but is still generating strong double-digit growth, growing net sales by 29% to $110m in 2020 and generating a profit in Q1 2021, although it made a net loss of $6m in FY 2020, said Spence.
“When you even look at some of the mature food companies, a lot of them have gross margins in the mid-30s. We were at 43% in 2019, 45% in 2020, and 46.2% in Q1, 2021, so you can see a progression,” added Spence, who said two things consumers are consistently looking for are less sugar and natural ingredients.
“Higher-margin innovation items are also increasing as a proportion of our mix. When you look at a category like energy, that offers really exciting gross margins relative to soda.”
Asked when Zevia might become consistently profitable, he said: “We’re addressing a massive global $770bn opportunity, so right now it’s prudent to invest in growth and continue to scale this business, but our…
