Strategic Execution and Performance Drivers
Achieved record 21% sales growth driven by deliberate cost restructuring, sharpened innovation, and expanded distribution channels.
Attributed outperformance to strong base business velocity and faster-than-anticipated realization of price increases implemented in Q1.
Leveraged a new partnership with Cardi B to drive the brand’s highest-ever organic social media reach and engagement since launch.
Successfully executed a national Costco rotation, which served as a key driver for household penetration and emerging market discovery.
Introduced new fruit-based flavors that are currently outperforming median portfolio velocities and driving significant retail incrementality.
Implemented a comprehensive package redesign to improve shelf presence and more effectively communicate clean-label product distinctions.
Optimized the supply chain through automation and warehousing efficiencies, resulting in a 370-basis-point improvement in selling expense as a percentage of net sales.
Outlook and Strategic Assumptions
Raised full-year net sales guidance to $170 million–$175 million, factoring in Q1 strength balanced against K-shaped economic uncertainty.
Anticipates Q3 will be a high-growth period due to the strategic shift of promotional and marketing dollars to coincide with peak summer demand.
Expects the planned discontinuation of the tea line to impact overall top-line growth by approximately 1 to 1.5 percentage points.
Projects full-year adjusted EBITDA between negative $2 million and negative $4 million, incorporating an $11 million total headwind from fuel and aluminum costs.
Assumes gross margins will remain roughly in line with Q1 levels, with slight pressure expected in the second half of the year.
Risk Factors and Structural Adjustments
Identified $6 million in new incremental costs, with two-thirds attributed to surging fuel prices and the remainder to fuel-related aluminum spikes.
Recorded $2.3 million in litigation expenses during the first quarter, impacting general and administrative costs.
Planned $1 million in restructuring costs for Q2 related to the strategic relocation of a distribution center.
Noted that while $20 million in costs have been removed over two years, additional savings of $3 million–$5 million likely won’t materialize until late 2026 or 2027.
Q&A Highlights
Strategic impact and budget for Cardi B brand partnership
Management confirmed the partnership is within the existing 2026 budget and utilizes a shift in promotional timing rather than incremental spend.
The collaboration focuses on an ‘always-on’ social media strategy and a major summer advertising campaign to expand the user base.
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