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MikeEsterl,April7,201612:52p.m.ET
AimeeBuckertsaysshefeltrippedoffasachildwhenherparentsstockedthefridgewithLaCroixsparklingwaterinsteadofsoda.Butthe36-year-oldsaleswomanhaschangedhermindaboutthelightlyflavoredbeverage.“Poprightnowisabigno-no,anddietpopisanevenbiggerno-no,’’saysthePlainfield,Ill.,resident,whonowdrinkstwotothreecansofLaCroixdaily.Likemanyconsumers,shedoesn’twantthecaloriesofregularsodaortheartificialsweetenersofdietdrinks.
LaCroix,aonce-sleepyNationalBeverageCorp.regionalbrand,isafirewithconsumersnationwidebecauseofwhatitdoesn’tcontain:calories,sweeteners,sodiumoranythingartificial.Itsingredientsarejustcarbonatedwaterandnaturalflavor.
WhileU.S.sparkling-waterconsumptionremainsone-tenthofbottledwater,itgrew26%lastyear,accordingtoresearcherBeverageMarketingCorp.Thefastest-growingunsweetenedbrandisLaCroix,whosesaleshavemorethandoubledinthelasttwoyearsto$225.5million,secondtoNestléSA’s$339.4millioninU.S.Perrier-brandsales,accordingtomarketresearcherEuromonitorInternationalLtd.
The35-year-olddrinkhassucceededwithquirkymarketingtactics.UnlikeCokeandPepsi,itavoidstelevisionadvertising.Itreliesinsteadonbrightlycoloredpackaging,andsocialmediawhere20flavorsrangingfromapricottocran-raspberryhavesparkedpassionateonlinedebatesandstoretreasurehunts.
AnonlineShedtheSugarSweepstakespromotiongaveLaCroixdrinkersToryBurchLLCtotebagsin2013.Ayearlater,thebrandbegana40CanChallengecampaignthatseizedonconsumers’growinghealthconcernsbyencouragingthemtoswapacanofdietorsugarysodaforLaCroixfor40daysandthensharephotosandstoriesonline.
MostLaCroixdrinkersarewomen—asisthecasewithdietsodas—butmenarediscoveringthebrand,too.Orlando,Fla.,residentandformerDietPepsidrinkerKevinGlennondedicatesmuchofhisfridgespacetoLaCroix,whichhecalls“soda’’forwaterdrinkers.
“There’snoguiltforaguylikeme.Icanpoundfiveorsixoftheseanight,’’saidthe37-year-oldTVadagencyemployee,anavidweightlifterandrunner.
(continued)
LaCrosse,Wis.-basedG.HeilemanBrewingCo.launchedLaCroixaround1981,namingitafterthecityandnearbySt.CroixRiver.NationalBeverageofFortLauderdale,Fla.,boughtitfrombeveragecompanyWinterbrookCorp.in1996,andinitiallyitremainedaMidwesternregionalbrand.
ButaboutfiveyearsagoNationalBeveragerelaunchedLaCroixwithneon-coloredpackaging,targetingPerrierdrinkerswithacheaper-pricedalternativeandbroadeneddistribution.
Competitionisheatingup.Nestlé,whichleadsthemarketwithitsPerrierandSanPellegrinodrinks,isexpandingflavors.PepsiCoInc.thismonthislaunchingalow-calorie,carbonatedversionofitsAquafinawaterwithblackcherrydragonfruit,lemonlimeandorangegrapefruit.LastmonthCoca-ColaCo.rolledoutfizzy,low-calorieMinuteMaidjuicedrinks.
LaCroixisgrowingfasterthanrivalspartlybecauseNestlé’sbrandscostmoreandCokeandPepsiCodidn’tfocusonsparklingwater.NationalBeveragehasaleguponregionalcompanieslikePolarBeveragesbecauseitowns12productionplants.Assparkling-watersalestookoff,retailersincludingTargetCorp.,PublixSuperMarketsInc.andWholeFoodsMarketInc.quicklygaveLaCroixshelvesandfloordisplays.
‘Somesayittasteslikeadayatthebeachandotherpeoplesayittasteslikesunscreen’
—MarkChristian,onhisfavoriteflavor
SeveralLaCroixexecutiveshaveleftinrecentmonths,threateningthebrand’smomentum.SpeculationalsohasswirledforyearsthatChiefExecutiveNickCaporella,whois80yearsoldandownsmorethan70%ofNationalBeverage,couldsellthecompany.
Mr.CaporellaandNationalBeveragedeclinedtocommentforthisarticle.TheNasdaq-listedcompanyhasa$2billionstock-marketcapitalization.Itsshareshitanew52-weekhighearlierthismonth.Lastmonth,itreportedrevenuerose9.3%to$525.8millionandprofitgrew18%to$43.7millionfortheninemonthsendedJan.31.
Meanwhile,LaCroixkeepsrecruitingfans.MarkChristiansaysheandco-workersatSanFrancisco-basedmessagingappcompanySlackTechnologiesInc.becameobsessedwithLaCroixaftertheiremployerbeganstockingitintheofficefridgelastsummer.Ithassincetakenovernearlyhalftheshelves,andthecoconutflavorhasfueleddebateinaninternalchatroom.
“Somesayittasteslikeadayatthebeachandotherpeoplesayittasteslikesunscreen,’’saysthe33-year-oldsoftwareengineerandlapsedCokeZerodrinker,addinghegivesfellowcoconutfansa“secretnod’’whenpassinginthehallway.
Seethefullarticlehere:http://www.wsj.com/articles/lacroix-bubbles-up-in-sparkling-water-brand-competition-1460047940