Is LaCroix’s Parent Company in Financial Trouble?
2016 has been a big year for water. This is the first year ever that bottled water has outsold soda, and LaCroix sparkling water has taken off in a way nobody could have expected. There are songs dedicated to LaCroix, there are cocktails centered around LaCroix, and last week we even built a LaCroix castle to honor our favorite sparkling water.
It was discovered, however, that the parent company of LaCroix — National Beverage Corp. — might be in a bit of trouble. Glaucus Research Group accused National Beverage Corp. of artificially inflating its stock. As a result, their stock plummeted by as much as 16 percent yesterday. The stock dropped to as low as $39.14, which would make it the lowest since March.
According to Bloomberg, National Beverage Corp. has grown sixfold since March of 2009. Barring this past Wednesday, LaCroix has even helped push up National Beverage Corp. 65 percent this past year.
Glaucus Research Group said of National Beverage Corp. that they had “become a faddish stock-market darling du jour,” and that they “believe that government regulatory and enforcement agencies should launch a full investigation of the company, its accounting, and its practices, creating a reasonable probability of further downside.” National Beverage Corp. has denied these allegations, saying that the report itself is “false and defamatory.”