Activist investor Kanen Wealth Management has urged Zevia’s board to launch a review of the company’s strategy, including a sale of the US zero-sugar soft-drinks maker.
In a letter dated Friday (14 August), David Kanen, the president of Kanen Wealth Management, said Zevia is “worth $2.75 to $3.75 per share in a sale – more than double the current price at the midpoint”.
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At 4pm in New York on Thursday, Zevia’s shares stood at $1.30. Year-to-date, the company’s share price is down more than a third.
Kanen Wealth Management owns around 4% of the group, which sells stevia-sweetened beverages in the US and Canada.
The activist investor argued Zevia has “failed to capitalise” on growth in the modern soda category despite having what it described as “genuinely valuable assets” including nearly 20 years of brand equity and national distribution.
It said Zevia’s enterprise value of about $100m, or roughly 0.6 times forward net sales, lagged transaction benchmarks such as PepsiCo’s 2025 acquisition of Poppi.
“The modern soda category delivered extraordinary growth and Zevia did not participate in it. After four years and hundreds of millions of dollars spent, the result is a smaller business,” Kanen wrote.
“In our view, the company has had years and ample capital to close this gap and has not done so. The value is real, but we believe it will be realised through a sale, not through more time. We expect the board to act decisively.”
Kanen also criticised governance at Zevia, citing the June appointment of board member Alexandre Ruberti as president and CEO after Amy Taylor stepped down to lead Angel City Football Club.
The investor said no external search was disclosed and questioned the board’s process around the succession decision.
In response, Zevia said it “welcomes open communication with all of its shareholders and values their input”.
The company added its board and management “regularly review the company’s strategic priorities and opportunities” to enhance shareholder value and the board would review Kanen’s concerns “carefully and thoughtfully”.
The intervention follows Zevia’s second-quarter results on 5 August, when the company posted net sales of $45m, up 1.1% year on year.
The group’s loss from operations widened to $2.9m from $1m, while its net loss increased to $2.9m from $0.7m.
Zevia said the higher net loss was primarily driven by increased equity-based compensation, including awards linked to its brand endorsement agreement with rapper Cardi B.
Ruberti said on 5 August: “We are working aggressively to build a strategic plan that we believe will accelerate growth and deliver sustainable outcomes for the organisation.
“Our immediate areas of focus are to evolve the go-to market strategy, sharpen and scale our brand identity, execute with financial discipline, and establish a performance driven culture.”
For the full year, Zevia maintained its outlook for net sales of $170m to $175m and an adjusted EBITDA loss of $2m to $4m.
In 2025, the company generated net sales of $161.3m and an adjusted EBITDA loss of $4.7m.
