CEO of LaCroix maker blames 'injustice' for plummeting sales and promises that customers will remain loyal to the 'LaLa feeling' the drink provides

LaCroixLaCroix had a rough quarter.
  • The CEO of LaCroix’s parent company offered a bizarre apology on Thursday after sales plummeted in the most recent quarter.
  • “Negligence nor mismanagement nor woeful acts of God were not the reasons – much of this was the result of injustice!” National Beverage Company CEO Nick A. Caporella said in a press release.
  • Caporella also compared managing LaCroix’s brand to “caring for someone who becomes handicapped,” but promised that customers would remain loyal to the “LaLa feeling” of loving the drink.

LaCroix’s parent company is issuing an unorthodox apology after a rough quarter.

On Thursday, parent company Natural Beverage Company reported net revenues of $US24.8 million in the most recent quarter, a significant drop from the $US41.1 million it reported in the same quarter in 2018. Shares had dropped by more than 13% by Thursday at 6:19 p.m. ET, after the market closed.

“We are truly sorry for these results stated above,” CEO Nick A. Caporella said in a press release. “Negligence nor mismanagement nor woeful acts of God were not the reasons – much of this was the result of injustice!”

“Managing a brand is not so different from caring for someone who becomes handicapped,” he continued. “Brands do not see or hear, so they are at the mercy of their owners or care providers who must preserve the dignity and special character that the brand exemplifies.”

Caporella’s comments seem to be a reference to a class-action lawsuit that was filed against Natural Beverage in October, which said that LaCroix’s all-natural claims are false and that its ingredients are actually synthetic. LaCroix responded with an emphatic denial of all claims, calling for customers to “stand with us as we defend our beloved LaCroix.”


Read more:
‘Please stand with us’: LaCroix slams ‘misleading’ lawsuit that links the sparkling water to insecticides

LaCroix sales declined by volume in the quarter. Caporella said that Natural Beverage’s revenue was additionally hit by a new tax act.

“No doubt, the sound and personality of the word LaCroix, coupled with the awesome experience of its essence and taste … is unique,” Caporella said in the statement. “One can be induced to purchase by cheapening price or giving away a product, but falling in love with a feeling of joy is the result of contentment.”

He continued: “Just ask any LaCroix consumer … Would you trade away that LaLa feeling? ‘No way, they shout – We just love our LaCroix!'”

Caporella has a history of some atypical executive remarks. In October, Natural Beverage released a press release calling itself a “cult.”

Here is Caporella’s full statement:

“We are truly sorry for these results stated above. Negligence nor mismanagement nor woeful acts of God were not the reasons – much of this was the result of injustice! Managing a brand is not so different from caring for someone who becomes handicapped. Brands do not see or hear, so they are at the mercy of their owners or care providers who must preserve the dignity and special character that the brand exemplifies. It is important that LaCroix’s true character is not devalued intentionally − in any way. National Beverage Corp. is and will remain the preeminent innovator that adds zest and authenticity to the ‘sparkling water’ phenomenon in North America.

Additionally, gross margins were impacted by volume declines. Comparisons were further skewed by the adoption of the new tax act in the third quarter of the prior year, which included credits and rate reduction adjustments aggregating $US11.3 million. Nothing herein mentioned has detracted from the ultimate value and future of our dynamic company.

There is no greater passion than the kind that creates the wonderful refreshment and contentment described as unique! No doubt, the sound and personality of the word LaCroix, coupled with the awesome experience of its essence and taste … is unique. One can be induced to purchase by cheapening price or giving away a product, but falling in love with a feeling of joy is the result of contentment. Just ask any LaCroix consumer … Would you trade away that LaLa feeling? ‘No way, they shout – We just love our LaCroix!’ I am positive they respond this way each and every time.”

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