LaCroix’s Cries of ‘Injustice’ Don’t Apply to Stock Drop

LaCroix sparkling water’s Nick Caporella says the brand’s recent sales stumble is the “result of injustice!” But the subsequent plunge in parent company National Beverage Corp.’s shares has more to do with an overvalued stock and investors’ outsize expectations than unfair persecution. And more market justice is likely headed National Beverage’s way.

Late Thursday, National Beverage reported that its quarterly sales for the three months ended in January had dropped slightly. That was the first time that’s happened in five years. It marked a setback for a company that had been growing like gangbusters, thanks to the runaway, word-of-mouth success of its quirky seltzer LaCroix, which comes in colorful cans and offers flavors like pamplemousse that embrace it’s French-looking name. (In reality, the beverage originated in Wisconsin, is named after the St. Croix River and, like the river, is pronounced with an “oy” at the end.)