The popularity for LaCroix has fizzled out, according to an analyst.
Sales for the flavored carbonated water are "effectively in free fall," wrote Laurent Grandet, a beverage analyst for Guggenheim, in a new note.
He cited increased competition for similar-type beverages, the "lack of meaningful or disruptive innovation," and blamed inexperienced management from its parent company, National Beverage (FIZZ).
We think it’s unlikely that LaCroix can recover to any meaningful degree while in the hands of National Beverage (or in the absence of a strong distribution partner)."
National Beverage CEO Nick Caporella once bizarrely said a drop in LaCroix sales "was the result of injustice!"
National Beverage's stock is down 1.6% in early trading and down 35% for the year.