Zevia Faces Pressure to Sell from Activist Investor

Zevia, a better-for-you soda brand, is under pressure from activist investor Kanen Wealth Management to consider selling the company.

Kanen, which owns about 4% of Zevia's outstanding shares, claims the company has failed to capitalize on the largest shift in the soda aisle in a generation. The activist investor is asking Zevia to review strategic alternatives, including a "good-faith process" to find credible buyers.

Zevia was founded in 2007 and was one of the initial pioneers in the lower-sugar alternative soda category. However, despite being a first-mover, Kanen says Zevia is not keeping up with competitors and is missing out on the category it helped create.

The modern soda sector grew by 83% between 2023 and 2024, according to Circana data cited by Kanen. In contrast, Zevia's sales declined 6.8% during fiscal 2024. The company spent $225 million on selling and marketing, warehousing, freight, and distribution between 2022 and 2025, but net sales still decreased and volume per store fell significantly.

Kanen suggests that a new buyer could absorb Zevia's warehousing and freight costs, as well as save the company money by eliminating its status as a public company. The California-based company went public in 2021 at $14 per share and currently trades for $1.32 per share.

PepsiCo acquired Poppi last year for $1.95 billion, and Olipop is valued around $1.85 billion. Kanen pointed to these deals as reasons Zevia could be attractive to a buyer and proposed a purchase price of $2.75 to $3.75 per share.

Zevia reported net sales of $45 million in the second quarter, up 1.1% over last year. The company attributed the slight increase to pricing changes, though the results were offset by declines in volume.

The company recently named Red Bull executive Alexandre Ruberti as CEO, but Kanen took issue with the lack of external selection process for a top executive, saying it made a consequential decision without a proper process.

Zevia's Struggles in the Modern Soda Market

The modern soda sector has experienced significant growth, with a 83% increase between 2023 and 2024. However, Zevia's sales have declined 6.8% during fiscal 2024.

Proposed Sale and Purchase Price

Kanen suggests that a new buyer could be interested in acquiring Zevia, citing the deals made by PepsiCo and the valuation of Olipop. The activist investor proposed a purchase price of $2.75 to $3.75 per share.