National Beverage Corp.

What they do

The company develops, produces and distributes sparkling waters, juices, energy drinks and CSDs, with its primary market focus in the United States and limited distribution in other countries. Its Power+ Brands include LaCroix sparkling water, Clear Fruit, Rip It energy drinks and shots, and Everfresh, Everfresh Premier Varietals and Mr. Pure juices; it also sells Shasta and Faygo carbonated soft drinks. Flavors, packaging and design are developed in-house, and marketing leans on social media, regional programs and in-store brand ambassadors rather than large national advertising.

Revenue drivers

• LaCroix sparkling water — LaCroix Sparkling Water is described in the 10-K as the company's most significant brand, positioned as zero calories, zero sweeteners and zero sodium and sold through mass-merchandisers, club stores, drug stores, supermarkets and natural/specialty retailers.
• Carbonated soft drinks (Shasta and Faygo) — Shasta and Faygo are described as iconic CSD brands with more than 100 years of consumer loyalty, and the company's most recent earnings release refers to a "priced-right" flavor variety of carbonated soft drinks.
• Juice and juice-based products — Everfresh, Everfresh Premier Varietals and Mr. Pure 100% juice and juice-based products are part of the Power+ Brands portfolio, along with single-serve juice and drink products cited in the latest earnings release.
• Energy drinks — Rip It energy drinks and shots are included in the Power+ Brands portfolio, which the 10-K describes as geared to the active and health-conscious consumer.

Recent performance

For the first quarter ended August 1, 2026, net sales were $330.7 million versus $330.5 million a year earlier, with net income of $47.0 million and diluted EPS of $.50, down from $55.8 million and $.60. Gross margin was 35%, which the company attributed to elevated input costs, saying aluminum costs alone reduced gross margin by almost 600 basis points, with fuel and freight also pressuring shipping expenses. Management said average selling price increases were largely offset by volume declines due to consumer sentiment and tariffs, but noted a rebound in orders during August. During the quarter the company paid a $304 million special dividend ($3.25 per share) on July 30, 2026, leaving cash of $107 million. On a trailing-twelve-month basis through August 1, 2026, net sales were $1.18 billion and net income $174.9 million.

Strategy

Management says its strategy is to deliver innovative, flavorful beverages with vibrant consumer engagement, impactful merchandising and targeted marketing, supported by disciplined operational execution. Innovation is highlighted as key to driving incremental demand, with a new LaCroix flavor, PineApple CocoNut, featured in the summer ad campaign and cited as a quick consumer favorite. The company says it has elected to absorb a portion of tariff-related cost increases at the request of the current administration and is monitoring volatile market conditions. It points to recently instituted pricing actions and disciplined operating focus as expected to improve performance, and describes its healthier LaCroix sparkling water plus priced-right CSDs and single-serve juice/drink products as positioning it across channels and categories. The company cites its strong balance sheet and a history of special dividends, including thirteen special cash dividends totaling $19.78 per share, or over $1.8 billion.

Risks

• Input cost inflation — Elevated aluminum commodity costs and tariffs reduced first-quarter gross margin by almost 600 basis points, with higher packaging, ingredient, fuel and freight costs also pressuring results.
• Tariffs and cost absorption — The company has elected to absorb a portion of tariff-related cost increases at the request of the current administration, which management says challenged its ability to respond as quickly as it historically has.
• Volume declines and soft consumer sentiment — First-quarter net sales were flat as average selling price increases were largely offset by volume declines attributed to consumer sentiment and tariffs, and management describes market conditions as remaining soft.
• Competition from larger beverage companies — The 10-K describes a beverage industry dominated by the "cola giants" and positions the company as competing by responding faster and more creatively to consumer trends than competitors with legacy production and distribution complexity and costs.

Outlook

Management says that while market conditions remain soft, it is encouraged by the rebound in orders during August and is optimistic that improving volume/mix will resume growth going forward. It believes recently instituted pricing actions, together with disciplined operating focus, will improve performance. The company continues to emphasize innovation, including the new LaCroix PineApple CocoNut flavor, and describes its balanced portfolio, strong balance sheet and entrepreneurial management focus as a foundation for creating long-term shareholder value.