Subscriber (Getty Images), La Croix is in hot water after a new class-action lawsuit claims the luxe drink brand has been falsely advertised as “100 percent natural.”. They hired Alchemy Brand Group, a branding company, to create a look that would help them stand apart from all of the other fizzy drinks at your local grocery store. LaCroix’s response to this legal issue was strange as well: A company press release with the word “NEWS” written at the top with the American flag overlaid, which called the pilots’ stories “defamation” with no corroborating information other than a quote from a board member who stated, “I have known Nick for over 40 years and I find these allegations to be incredulous.”. So, when a lawsuit was filed last week against the drink's parent company National Beverage Corp., claiming that LaCroix misled customers by … It has flavor and fizz, but still maintains a “healthy” image in being low calorie and all-natural. It was not conceived of in a boardroom in Paris with Perrier executives spying from next door. See more. Fun stories about food, relationships, the great outdoors and more. National Beverage Corp. purchased LaCroix in 1996, so like many snowbirds, LaCroix left the frozen north for sunny Florida where it's here to stay. In fact, we even dubbed this phenomenon The La Croix Effect, tracking some of the La Croix copycats entering the market from brands like Pepsi, Coca-Cola, and Corona. La Croix has more competition to contend with, and their scores are fluctuating in response, but right now, their “will/use buy” score is healthier than Bubly’s, and it’s at a higher point than it was in February or March, key months cited in that headline-spawning Guggenheim report. Under threat of a hostile takeover, however, he set up a new company — National Beverage Corp. — in 1985, and additionally purchased Shasta, a soft drink company. Bearing this in mind, it's no surprise that millennials are less interested in soda than their predecessors.

But are young consumers really over La Croix? LaCroix is not evolving, Guggenheim’s analyst argues, and in fact is quite poorly run.

You have a La Croix problem.
The "La" in the name was taken from La Crosse, and the "Croix" comes from the St. Croix River, a tributary of the Mississippi River.

Sign up for Insider Retail. In a sense, La Croix is the ideal substitute.

Millennials who winkingly embraced the normcore aesthetic of LaCroix have moved on (or back) to classic Polar. So is La Croix actually bad for you? Sign up for the What makes it so special, and is it too good to be true? LaCroix has denied the claims in the suit. And I get it — taking an ice-cold La Croix out of your fridge, popping it open, and hearing those little bubbles foam up, it just feels good and right. Market data provided by Factset. Here we have their “popular” score compared to Bubly’s: The scores here are based on the question, “Which of the following are POPULAR among you and your friends?”—and we can see that La Croix still beats out Bubly in this area. But if La Croix were to label their drinks as artificially flavored, would they have the same success as they had before? Quotes displayed in real-time or delayed by at least 15 minutes. If you have already made a contribution to Vox, thank you. Now that I'm a longtime LaCroix drinker, I don't really like soda at all, though I will have the occasional Diet Coke with a meal at a restaurant.

The brand has credited social media for the surge in their popularity among young consumers.

", He continued: "As a result, 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).". And the trend only increased, sending National Beverage shares through the roof and making it the fourth-largest soft drink company in the world. However, I still think that La Croix as a brand has a responsibility to inform customers of what they are putting into their bodies.

LaCroix sales are “effectively in free fall,” Guggenheim Partners beverage industry analyst Laurent Grandet wrote in a report released Thursday. La Croix is in hot water after a new class-action lawsuit claims the luxe drink brand has been falsely advertised as “100 percent natural.” But it’s hardly a mystery why: There are seemingly limitless options for seltzer now, and most of them aren’t from companies battling scandal after scandal. It's pronounced la-croy, just like the island in the Caribbean, St. Croix. ✨ #LiveLaCroix pic.twitter.com/8iJcPp9R8n, This was shortly after National Beverage’s 83-year-old billionaire CEO Nick Caporella was accused of sexual misconduct by two pilots who had worked on the company plane. One of the newest flavors, also its own product line, is fascinating when taken into context with the beverage industry. National Beverage Corp. has some slick marketing genius, as is evident by their success and widespread popularity. The stock price for La Croix’s parent company National Beverage dropped 10 percent this week, and has fallen 62 percent since September of last year.
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It's full of sugar — up to 50 grams per can — and is packed with artificial colors and flavors. The company’s official response to this lawsuit included tweet storms asking its customers to come to its aid.

Things look even more positive for La Croix when we look at a few specific dimensions. The increase in awareness and positive perception around one of their big competitors put a dent in La Croix’s standing, but in more recent months, they actually surpassed Bubly’s Yscore once again, and now the two brands are reaching even ground. This includes regular LaCroix, as well as LaCroix Cúrate, which is their first brand extension. reported by Vox’s Libby Nelson and Javier Zarracina, This week in TikTok: MAGA meltdowns and Gen Z revolutions, The best $475 I ever spent: A kayak that made me appreciate where I come from, The songs that made America dance in the streets this weekend, Why so many people have started journaling during the pandemic, How the Navajo Nation helped push Democrats ahead in Arizona, Biden: Trump’s refusal to concede is an “embarrassment”, Mike Pompeo undermined America’s democracy in one press conference, What Bill Barr’s memo and Mitch McConnell’s speech mean for the election. https://www.lacroixwater.com/nutritional-faqs/, Copyright 2020 Foundation of Student Communications. The data also suggests LaCroix is losing customers to other sparkling-water brands, with its market share dropping to 23% from 28% in October. America’s polarization problem is bigger than we thought it would be. Last year, PepsiCo Inc. released Bubly, a sparkling water backed by a marketing arsenal that LaCroix … But unlike all of the other colas on the market, it has no sugar or sweetener — just the cola essence.