National Beverage CEO Nick Caporella's ratings tank along with sales
National Beverage Corp. ($NASDAQ:FIZZ), the owner of the La Croix sparkling water brand, saw its profits tank 39.6% during the three months ending on Jan. 29. The reasoning behind this plummet that its CEO, Nick Caporella, gave to investors? "Injustice."
Caporella is referring to a current lawsuit against his company, which alleged that La Croix improperly labeled itself as "all-natural" despite containing ethyl butanoate, limonene, linalool and linalool propionate.
During the week of the lawsuit in reference, LaCroix's "Talking About" count on Facebook peaked at over 31,000 mentions in posts, stories, and other items that appeared on Facebook timelines. That count was most that the brand ever had since November 2015.
Meanwhile, National Beverage Company employees who use the employer-review website Glassdoor have been openly expressing their disapproval for Caporella. On the website, Caporella's approval rating, which is made by aggregating reviews about him, sits at 31%.
Individual reviews paint a picture of chaos at the company, with one person calling the environment "toxic" and "disorganized."
As La Croix is back in the news cycle for all the wrong reasons, shareholders are taking all these signs as a reason to sell. Shares of the company dropped 16% overnight from March 7 to March 8.