Zevia PBC (ZVIA) Stephens 26th Annual Investment Conference | NASH2024 summary

Business overview and growth factors

• Identifies a strong, differentiated brand in the emerging better-for-you soda category, with clean label and approachable price point as key strengths.

• Sees significant opportunity as consumer preferences shift toward health and wellness, with taste and flavor innovation driving excitement.

• Focuses on building a breakthrough brand by addressing past issues and leveraging product innovation.

• Highlights the importance of taste and clean label as main differentiators versus both traditional and other better-for-you sodas.

• Notes rapid sell-out of new flavors, such as Salted Caramel, as evidence of successful innovation.

Competitive landscape and consumer engagement

• Better-for-you sodas are seen as a catalyst for category growth, with increased competition raising consumer awareness.

• Emphasizes the need to communicate that consumers do not have to sacrifice taste for health benefits.

• Marketing is shifting from education to focusing on taste and flavor innovation, with increased investment in top-of-funnel marketing.

• Retailers like Walmart are validating the category with new sets such as Modern Soda, expanding distribution and trial opportunities.

• Variety packs and pack size innovation are key to driving trial and household penetration.

Distribution, retail, and channel strategy

• Expanded distribution at Walmart, including the launch of a retail variety pack, is driving early sales success.

• Multi-pack distribution and channel-specific formats (retail, club, Amazon) are being optimized for growth.

• Category creation mindset and data-driven approach are used to convince retailers to expand shelf space.

• Direct Store Delivery (DSD) network is being built out regionally, with learnings from Pacific Northwest and plans for Southwest expansion.

• Convenience channel is a longer-term opportunity, with cold availability and singles driving trial, but requiring a differentiated playbook.