Zevia at 16th Annual Midwest Ideas Conference: Strategic Moves in Soda Market

On Tuesday, 26 August 2025, Zevia Pbc (NYSE:ZVIA) presented at the 16th Annual Midwest Ideas Conference. The company emphasized its strategic plan to leverage the expanding better-for-you soda market. While Zevia highlighted a robust growth trajectory and first-time positive adjusted EBITDA, it also acknowledged challenges in achieving profitability by 2026.

Key Takeaways

• Zevia reported a 10% increase in top-line growth year-over-year in Q2.
• The company achieved positive adjusted EBITDA for the first time as a public entity.
• Strategic initiatives include marketing amplification, product innovation, and distribution expansion.
• Zevia identified $20 million in cost savings, with $15 million expected by year-end.
• Marketing spend increased from 6% to 12% of revenue this year.

Financial Results

• Q2 saw a 10% year-over-year top-line growth.
• Positive adjusted EBITDA was achieved for the first time since going public.
• Identified $20 million in cost savings over the past year.
• $15 million of these savings are expected to be realized by year-end.
• Marketing expenditure doubled from 6% to 12% of revenue.

Operational Updates

• Zevia’s distribution points exceed 37,000.
• The company re-entered the club channel in Q2.
• Walmart expanded Zevia’s presence from 800 to 4,300 stores in Q4 last year.
• Albertsons increased Zevia’s shelf space by 30% in Q2.

Future Outlook

• Plans to expand distribution in grocery, club, mass, convenience, and foodservice channels.
• Aims for self-funded marketing through cost savings.
• Anticipates accelerated growth and profitability by 2026.
• Exploring an ambassador program to enhance brand promotion.

Q&A Highlights

• Funding: Zevia may only raise capital for special partnerships or joint ventures.
• Marketing: Increased spend from 6% to 12% of revenue.
• Pricing: Positioned slightly above traditional sodas but significantly below other better-for-you options.
• Retailers: Expansion in modern soda sets is supported by retailers.
• Product Development: Continuous improvement in taste and new flavor launches based on consumer insights.

For a detailed understanding, refer to the full transcript below.

Full transcript - 16th Annual Midwest Ideas Conference:

Operator: Are traded on the New York Stock Exchange, ticker ZVIA. Presenting for the company is CFO and principal accounting officer, Grisha Satya.

Grisha Satya, CFO and principal accounting officer, Zevia: Well, I hope this clicker is the one that works. So good afternoon, everyone, and thanks for joining us today. I look forward to speaking with you about Zevia and our plans for the future as we embark on this next phase of growth within the emerging better for you soda category. Oh, there oh, that did work. Before we kick off, I’ll quickly flash our safe harbor statement, which obviously we’ve made very easy for all of you to read in the audience.

And if you, as a reminder, this will be available on the Xevia Investor Relations website as a follow-up. So what is Xevia? So Xevia was actually founded in 02/2008, so we’ve been around for a little while. It It was founded by a husband and wife who were avid soda drinkers but were were worried about the harmful additives and harmful chemicals that they, were reading about. And so they were in search of how do we sort of scratch our soda itch while doing so in a healthier way.

And so really what they were able to do was utilize the stevia plant as well as a mix of natural flavors to really create a better for a better tasting, better for you product and really sort of solve this tension between taste and health. And thus, Zevia was born. And rooted sort of in that innovation is really our mission to bring healthier, better tasting, and more planet friendly beverage solutions to the market and so and to the consumer. And so, really, I’m excited to talk to you a little bit about how we’re translating that mission into our business today. So why invest in Xevia?

And so really, as we fast forward to 2025, we’re well positioned to capitalize on this massive market with within the fast growing better for you soda category. We have a distinctive market position that stands at the intersection of health and taste. We have strong consumer loyalty and repeat purchase rates. We have multiple brand levers at our disposal to accelerate growth, and we’ve built a scalable asset light model to do that to do just that. So let’s talk a little bit about the company.

So I think this is a great sort of snapshot of where we are today and the opportunity in front of us. I think what you see here is a history of growth, widely distributed with 37,000 distribution points. We’re more affordable than 65% of nonalcoholic beverages, and our consumers spend 35% more on beverage and 31% more when they travel to the grocery store. But and so really highlighting a very strong loyal consumer base with which to build on on top of. Separately, you also see that our household penetration is only at five point, 5.1%, which suggests a significant amount of runway in order to drive top line growth.

And lastly, it also highlights highlights our con our commitment to doing no harm to the planet with zero plastic bottles sold and 93 tons of metric sugar removed from diets. So one of the things that we’re most con convinced by is that brand will be the moat for this business. And we believe that building a distinct brand is super important not only in the beverage category but for the ultimate success of Zevia. And so really, our brand positioning is rooted in three unique elements. First is our distinct product.

We really are soda made better. We’re the only zero sugar, zero calorie, no artificial ingredients, and we’re really leaning into that product differentiation. Two, you hear realness or authenticity tossed around a lot. And in a world of AI, fake filters, and alternative facts, we’re really we really believe in delivering a more authentic experience to our consumer and poking a little bit of fun at the sort of highly curated online content you tend to see in the market. And then lastly, accessibility.

And so we define accessibility a little bit differently in that, one, we wanna ensure that consumers can enjoy our product on a limitless basis under any usage occasion, and so therefore, there are there’s no additional additives. Two, being priced appropriately. So, again, that it is an approachable price point and thus not just available to those to those who are very affluent or to the coastal, elite. And I think as we think about how do we best sort of encapsulate all of these three all of these three pillars, we think the national advertising campaign which was the first of its kind or the first for Zevia that we ran earlier in the year with, the crossover artist Jelly Roll is really the greatest encapsulation of how this brand is coming to life. And so I’m actually just gonna play that clip for you now.

Unidentified speaker: Jelly roll? In a Zevia commercial? This is huge. By choosing him as the spokesperson for their zero sugar soda with zero artificial ingredients, Zevia is dismantling the notion that quote unquote real men cannot be conscious of what goes into their bodies. Mister Rola’s now, quite literally, the poster child’s with sweet authenticity.

Unidentified speaker: What? Zero sugar, no artificial nothing. Zevia, get the fake out of here. Why

Unidentified speaker: is he just standing there?

Grisha Satya, CFO and principal accounting officer, Zevia: So we think that’s a great sort of encapsulation not only of sort of the tone and tenor of the brand, but also this idea of poking a little bit of fun at sort of the highly curated online content that you see, whether it’s on Instagram or TikTok. And really, at the heart of this brand is also a really distinct soda portfolio in an emerging energy drink line. Our today, our product portfolio is really focused on historically has leaned into nostalgic flavors, which I’ll dig into a little bit later in the, presentation. But we also have a very, we also have a very nascent energy drink line, better for you energy drink line as well, which has incredibly high margins and a loyal consumer base. And so although our focus is soda today, we do believe in the future that this represents a untapped significant growth opportunity for the business and for the brand.

As we think about our product, we really do believe we deliver soda made better. And as you can see, our beverages are unique and that we have no sugar, no calories, and no dyes. We’re really the only true clean alternative in the category. And as an aside, as consumer adoption of GLP ones continue, we do believe we’re also well positioned favorably given the calorie restricted nature of those on GLP ones that Xevia can be a very, unique solution for those who wanna continue to enjoy their soda, habit but may need to do so on a calorie restricted basis. And so said differently, we think we have a very, differentiated product that tastes great and, will allow us to sort of drive continued growth and differentiation.

From a distribution standpoint, we have a broad and diverse distribution footprint. We’re well represented by some of the biggest names in grocery, mass, and club. Our current total points of distribution number 37,000 plus with significant room to grow. Recently, we reentered the club channel in the second quarter, and we’ll touch on some of the distribution white space later in the presentation. We’ve made great strides over the past year in consolidating and optimizing our supply chain.

While we continue to work to further streamline our supply chain, our current footprint is both flexible and scalable, which will enable significant growth with limited incremental investment. We built an experienced management team with a mix of beverage and CPG experience that is setting the stage for the next phase of growth profitability. Our CEO, Amy, spent twenty years at Red Bull, most recently as its North American CEO and or excuse me, President and CMO. I myself have helped build a number of high growth consumer companies as a serial CFO, PE investor, and board member. And we’re complemented by a team of experienced beverage and CPG executives from companies such as Procter and Gamble, Taco Bell, Red Bull, and Monster.

We’re making significant progress against our twin goals of reinvigorating top line growth and achieving profitability achieving adjusted EBITDA positivity headed into 2026. Playbook from cutting from the back to invest in the front has started to bear fruit. Although there is still work to be done, we believe the moves we’ve made over the past year has really set us up for the future. In our most recent quarter, we delivered 10% top line growth as compared to Q2 last year and reached positive adjusted EBITDA for the first time as a public company. While we’ll see the impact of tariffs hit our P and L in the 2025, we believe the second quarter was a key milestone for us as it shows the confidence we have not only in reinvigorating top line growth, but being able to achieve profitability as well.

So what gets us so excited, about the category? I think there’s a couple of things that we wanted to highlight. We’re seeing a rapid shift in consumer preferences and two trends in particular stick out. One, of course, our consumers’ desire to reduce their sugar intake in order to improve their health outcomes and a focus on natural high quality ingredients and relatedly eliminating artificial We’re uniquely positioned to thrive amid the growing shift toward better for you sodas and better for you alternatives. This has really created an outsized growth opportunity for the better for you soda segment.

The total carbonated soft drink market is $57,000,000,000 and continues to grow at a healthy clip. However, within this large category, better for you soda is growing at five times the rate of conventional soda is on pace to continue to drive the growth of the overall category. Better for you soda is a unique opportunity to not only grow the overall category but also gain share while doing so. I think the better for you soda shopper is also a very attractive demographic. They tend to skew Gen z and millennial, tend to be a little bit more affluent, are very health involved or concerned about their health, and are willing to pay a premium for products that they deem to be healthier, better for you, natural, and organic.

And so this will this high willingness to pay also creates a lot of opportunity for us from a pricing standpoint as we think about, the future. So how are we capitalize all this momentum in the category? Well, we’re focused on four key initiatives. First, amplifying marketing two, driving product innovation three, expanding distribution and four, delivering profitability. So I wanna touch on marketing.

So we’ve sharpened our marketing positioning to drive brand awareness and deepen engagement. With just 5% household penetration, we have tremendous white space in front of us. We’re delivering more compelling brand messaging, brand campaigns to drive reach and relevance and to attract a broader audience while staying top of mind amongst our loyal base. To support our refined marketing approach, we’ve increased our marketing spend with the same while at the same time shifting investment to growing the user base with national campaigns and influencer strategies. As noted, our sharper marketing is best exemplified by our recent national ad campaign earlier this year featuring the crossover artist Jelly Roll, which I aired earlier in the presentation.

The ad generated 2,400,000,000 positive media impressions and the highest engagement ever on Zevia social channels. To complement this, we’ve also refined our approach to product innovation, which has seen some very positive initial success, which we’ll touch on shortly. Lastly, we continue to invest in media and event activations in the balance of the year and we’ll continue to look for opportunities to further invest behind our marketing. A lot of the early success has really been driven by sort of the nimble and scalable marketing ecosystem that we’ve built. We continuously fine tune our spend by channel, scaling investments up and down across social media, influencers, retail activation, in real life activations like events at Coachella and Stagecoach and digital advertising as well.

And we’re able to scale those up and down based on performance in a very methodical fashion. So turning to product innovation. We’re driving growth through a strategic innovation pipeline rooted in consumer megatrends. Further leveraging our capabilities and delivering great taste through natural flavors and a new stevia blend, we have a robust pipeline of new product innovation. Our innovation is focused on both enhancing the taste of our legacy flavors while also delivering exciting new flavors that closely align with a wide range of consumer preferences.

Complementing our legacy flavors, legacy classic and nostalgic soda flavors with more on trend fruity flavors, we’re broadening the appeal of the product. These initiatives designed to drive trial and excitement with both new and existing consumers and retailers are garnering very positive response and increased interest among both. Our two most recent launches, Strawberry Lemon Burst and Orange Creamsicle, which is currently an exclusive at Sprouts, have quickly risen to become two of our fastest selling SKUs. This is significant as it provides that our innovation can help drive acquisition of new customers and distinct consumer segments. Another tool at our disposal is limited time offerings that are seasonal in nature and drive engagement.

For example, we launched Salted Caramel last year, last fall rather, which has been one of our most successful LTOs to date and one that we can bring back each fall and are planning to in this coming fall. Know our marketing team doesn’t like it when I, refer to it as such, but it is our take on sort of Starbucks’ pumpkin spice latte where we can drive excitement and anticipation of new flavors on a seasonal basis. And I you know, as a our expanded pace of innovation has really allowed us to offer more LTOs, which is both to drive newness for consumers but also a vehicle to learn, to learn and adapt for permanent adaptations to the portfolio. As I mentioned earlier, we’ve enhanced our stevia and taste profile to bring out a more distinct and bolder flavor profile while minimizing the stevia aftertaste and in some cases completely eliminating it. We’ve seen strong response to the new taste profile during our consumer testing and are seeing the results in both new flavors and legacy flavors that have been reformulated to adapt the improved taste profile.

We believe this further differentiates Zevia as we strive to broaden the distinction of our zero sugar great tasting soda. To better highlight our enhanced taste profile, we’ve introduced our refreshed packaging, which has started its soft rollout with the launch of Peaches and Cream, which is available exclusively on Amazon. We believe this enhanced packaging will better communicate the consumer value proposition and give new consumers more reason to buy Zevia. Our in store tests have indicated that the refreshed packaging and improved taste profile has increased lifts and we’re excited for them to be fully rolled out in market by 2026. But be on the lookout as they will be soft rolling out over the coming quarters.

Lastly, we’ve also introduced new retail variety packs to further drive new consumers to the brand. This is especially helpful in regions where we don’t have DSD or direct store delivery and therefore have lower penetration of singles because it offers us an incremental opportunity to drive trial with new consumers. Operationally, these have been streamlined and automated such that we can scale them up without significant margin impact. The third focus is expanding distribution. Despite our 37,000 total points of distribution, we still see significant untapped opportunity to expand our presence in current and new channels.

In particular, in the near to medium term, we are expanding the breadth and depth of our offering at our core grocery channels. At the same time, we are increasing our presence in the high potential club and mass channels. Longer term, we see additional opportunities across convenience and foodservice as we successfully build our brand and improve our unit economics. I think interestingly, retailers have also begun to expand and invest heavily into the modern soda set. And retailers have now, been attuned to customers coming in and making it easier for them to find and shop better for use sodas.

This was somewhat accelerated by Walmart’s decision to create a modern soda set in Q4 of last year, and many other retailers have followed. For instance, in the second quarter, we announced that we’d expanded our Albertsons set by 30% and we’ve begun to see similar rollouts across our existing in our existing retailer base. So what this really says is that we are uniquely positioned to succeed as the consumer shifts and retailer shifts are creating tailwinds for the Zevia brand. So as we discussed, we’re just beginning to scratch the surface of the distribution opportunities. We recently entered Walgreens and are back at Costco as of Q2 on a rotational basis, but they still remain a really small part of our mix.

Separately, as we establish our brand and portfolio and diversify our product portfolio and continue to prove our unit economics, the convenience and foodservice channels represent significant upside. And to date, we are as you can see from the bottom, all of these channels represent less than 1% of, our volume today. So we have a huge up opportunity to drive expanded distribution. Less than 1% of their total stores, but we have convenience is less than 1% of our volume. Food service is less than 1% of our volume.

Drug is around 1% of our volume. And then warehouse is is quite, low as well. And lastly, on profitability. So over the last twelve months, we’ve identified $20,000,000 in cost savings of which $15,000,000 of annualized cost savings will be realized by year end, which which has been partially reinvested into the business with the remainder flowing to the bottom line. This has been driven significant improvement in our underlying unit economics, which will serve as a strong foundation for profitable growth.

Believe that the work we’ve done across marketing, product innovation and distribution puts us on track to deliver accelerated growth and achieve profitability in 2026. So wrapping it up, key takeaways are we’re well positioned in this high growth emerging category. We have a distinct market position with a clean label zero sugar all natural soda. We have strong consumer loyalty and repeat rates, which serves as a solid foundation for the brand. We have multiple growth levers at our disposal, and we have built a scalable and asset light business model that’s ready to scale for profitable growth.

So with that, I’ll wrap up my prepared remarks and open it up for any questions. Oh, yes. Yeah.

Unidentified speaker: Would you be more likely to raise funds through debt or through equity?

Grisha Satya, CFO and principal accounting officer, Zevia: Yeah. So this year, we’ve effectively doubled marketing as a percentage of revenue. So we went from 6% to 12% this year. And we continue to see opportunity to further invest in marketing. And so we’ve been continuing to do that vis a vis pulling out costs from the back of the house, really in supply chain and and selling warehousing and reinvesting that into marketing.

I think at this point, we’re closer than we’ve ever have been to sort of a normalized, marketing spend, and I think we’ll be able to sufficiently self fund that. Where we would need to potentially raise incremental capital would be for something maybe outside the normal course of business, say a joint venture or some sort of special partnership. But I think at this point based on the cash on hand, our untapped revolver and the continued room we have to pull costs out of the business and reinvest it, I don’t know that we’ll need to do that specifically to support marketing spend.

Unidentified speaker: I will say the marketing spend, at least from my perception, seems to have been very successful. I,

Grisha Satya, CFO and principal accounting officer, Zevia: Yeah. So I think from a pricing perspective, you know, we’re priced at a slight premium to say the traditional mainstream sodas, Coke and, you know, Cokes and Pepsis of the world. We’re actually a significant discount to the other entrants in the better for you soda category. In some instances, we’re 50% less already. And so I think in many respects, we continue to hold a very accessible and approachable price point.

And I think we’ll continue to maintain that. We we, you know, we will continue to sort of manage price to maintain that. And so in the in the short to medium term, I don’t see the need to really adjust it all that much because I think we’re already priced at a very accessible, we’re already priced at a very accessible, place. And I think it just, again, it reinforces this idea that we’re sort of the, you know, the soda for everybody, right, which is which is I think what we’re really leaning into.

Unidentified speaker: It’s definitely more affordable than Poppy or some of those other ones for sure. Right. Somebody that was involved here in in a high level, used to work at Red right?

Grisha Satya, CFO and principal accounting officer, Zevia: Yeah. We we don’t currently have an ambassador program, as you’ve described it. However, it is something that we’re, you know, exploring, and I think we continue to look for and find new and unique ways to get, you know, people into the brand. And to your point, earlier point, you know, I think the the market limited marketing that we have been doing this year has been, you know, highly impactful and relatively successful. And so I think, again, we continue to sort of optimize our mix and look for new and, you know, new opportunities to to bring new people into the brand.

Unidentified speaker: Yeah. For sure. And I I think the last thing that I would touch upon, I really see this big overlap with

Grisha Satya, CFO and principal accounting officer, Zevia: Can you ask me that question one more time?

Unidentified speaker: Yeah. So you have the sodas. Mhmm. You have the energy drinks, but preworker preworkouts are very, very

Grisha Satya, CFO and principal accounting officer, Zevia: Oh, I see what you’re saying. At this time, you know, it’s not on the product road map. You know, I think we do believe that energy can be, the next sort of leg of the stool from a growth perspective. You know, clean energy is, is sort of also having its moment. But, you know, we’re really focused on building the soda brand, building the soda franchise, building a distinct brand.

And then I think it’ll be a lot easier, to get the consumer’s permission to expand into other categories. And so, you know, we have a pretty loyal consumer base already of of the energy drinks, and I think as we look to build upon that, you know, that’ll be sort of the next growth lever. And, you know but to to your point, that isn’t necessarily in a product road map right now. Okay. Awesome.

Thank you. Yeah. Go ahead.

Unidentified speaker: When you approach retailer new retailers and you don’t get in, what’s the typical reason you guys aren’t getting in?

Grisha Satya, CFO and principal accounting officer, Zevia: Yeah. You know, I I think it really comes down to, you know, shelf sets and is the is the retailer ready to sort of dedicate this shelf space to a sort of modern soda or better for you soda. And I think generally speaking, as we were talking about earlier, that may have been a harder sell three, four, or five years ago, but today, it’s becoming increasingly more common that retailers are executing these types of sets. And so we’re seeing a lot more adoption of that. Sometimes it’s just a little bit slower than others.

Some retailers are slower than others, but we’ve seen a lot of receptivity to it. I think on the flip side, what we’re seeing now is a flood of entrants into the market. Right? And so I think that’s really where retailers are trying to balance, you know, more established players such as ourselves with some of the newer up and coming, you know, brands as well. You can today.

And, you know, there has been some discussion about, you know, products not qualifying for SNAP or EBT benefits. As of right now, we believe we still would qualify because we actually don’t have any we are on actual no sugar, and so we believe that we would still qualify. Yes. Go ahead. Oh, I’m sorry.

Yeah. You know, I don’t know that we have. I do think in in and I, you know, don’t wanna speak for the, I’m certainly not the marketer, but the you know, I think this messaging does, I think, resonate with, you know, the consumer and in the consumer testing that we’ve done. This messaging does resonate. And again, I think it’s a, a bit of a I don’t wanna say backlash, but it is a bit of a, response to, again, a lot of the sort of fake highly curated content that you see online.

And I think that’s really what we’re sort of embracing as we think about this idea of sort of getting the fake out of. And

Unidentified speaker: then what do you how do you decide, you know what? This flavor is not good enough. Like and we need to revise it. And like you say, your your tonic water can

Grisha Satya, CFO and principal accounting officer, Zevia: pull Yeah.

Unidentified speaker: You think about bringing it back with a different flavor and trying again, or is it like we’ll never try it again?

Grisha Satya, CFO and principal accounting officer, Zevia: Yeah. So I think we have a pretty robust product innovation pipeline. We have a we have a r in house r and d team that is constantly working on, you know, improving the taste and launch and sort of, you know, ideating around new flavors. We tend to sort of ground it in both consumer research and sort of what the r and d team is seeing in terms of trends. We sort of marry those two up, and that sort of informs what we’re gonna launch.

And then typically, we will launch things in a in a micro format, whether it’s an LTO, online only, etcetera, and sort of test and learn, and then determine what are the appropriate adaptations to the portfolio. I think as we talked about earlier, you know, the fruitier flavors are really sort of a big area of growth and one that truly diversifies our product portfolio. And so we’re leaning in there because that’s really where we see the consumer going. And so we’re, you know, making sure that we have, the the types of flavors and profiles that they’re looking for. Go ahead.

Unidentified speaker: Do you put probiotics in any of this stuff?

Grisha Satya, CFO and principal accounting officer, Zevia: We do not. We do not. So, again, really leaning into this idea of, like, truly clean label, zero sugar, zero, you know, zero zero zero across the label. Well. Zero calories

Unidentified speaker: Got it. Okay. So you’re competing almost with sodas and then flavored water as well kind of in the middle.

Grisha Satya, CFO and principal accounting officer, Zevia: That’s correct. That’s correct. We source a lot of our demand, if you will, from, you know, people who are switching from conventional soda, but as well as people who are switching from sparkling water who may want a stronger flavor profile, bolder taste. And so I think generally speaking, that’s a good way to think about it.

Unidentified speaker: And do you white label at all for others?

Grisha Satya, CFO and principal accounting officer, Zevia: We we do not white label at all for others. You know, I don’t know that we we’ve looked into it when and evaluate it, but I think from a just value creation standpoint, you know, building the brand and and really focusing our time on, delivering great tasting, you know, innovative products, and building a distinct brand are really gonna be what sort of drives, you know, long term shareholder value.

Unidentified speaker: And have you looked at other sweeteners as well? Or are you I mean,

Grisha Satya, CFO and principal accounting officer, Zevia: your name convinced you. Yeah. You know, we have actually we have looked at other sweeteners, and I think, again, it’s an ongoing evaluation. But that being said, I think we’ve really we’re really proud of the work the team has done on dialing in the flavor profile and and the improvements that they made sort of unlocking some incremental ways to use stevia. And so I you know, as I said earlier with the consumer testing that we’ve done, the response has been, you know, has been really strong to to the new flavors.

And and I think that’s where we’re we feel like we’ve really in some ways, I think we’ve kind of unlocked, and I don’t wanna say perfected, but I think we were close to sort of perfecting this idea of of stevia as a great, you know, sweetening system with incremental natural flavors to deliver that bold taste and eliminate that, you know, stevia aftertaste. Yeah. Go ahead. Yes. So Walmart, we shipped in Q4 of last year.

And so we went from 800 stores and 11 or 800 stores to 4,300 stores in Q4. And so you saw that on shelf kind of Q1 of this year. And then Albertsons expansion was effectively through their portfolio of banners through the end of by the end of Q2, basically. Yeah. Maybe a little bit earlier, but in q two.

Unidentified speaker: Okay. So that means the decline in opportunities, so what

Grisha Satya, CFO and principal accounting officer, Zevia: that means or I’m sorry. The shelf set expansion abersons? Yes. It’s it’s done at this point. Okay.

Yeah. What

Unidentified speaker: did you mean about the rotational? You said at Costco, you were on rotation.

Grisha Satya, CFO and principal accounting officer, Zevia: Yeah. So, rotation means we’re not an everyday item. Right? And so Costco is sort of a regional, sort of a regional structure where you can sort of pulse product into regions on an in and out basis. And so that’s we’re sort of on an in and out basis with select Costco, regions right now.

And then, again, the opportunity, right, is to get back to being a everyday item at Costco.

Unidentified speaker: Is that the test that they do? Or

Grisha Satya, CFO and principal accounting officer, Zevia: I think they have a it it club is historically, and Costco in particular, is a is a highly in and out channel. And so that is that is part of it’s a feature, not a bug. It’s it is what they it is how they merchandise. And so, you know, being, but eventually, you can sort of transition into into an everyday everyday item, which is which is the bigger opportunity. Great.

Are there oh, go ahead.

Unidentified speaker: Where are the samples?

Grisha Satya, CFO and principal accounting officer, Zevia: Yeah. It it is, it is an oversight on our part, but, we well, next time, we’ll definitely make sure, you know, to have samples available. But with that, I, you know, thank you all for your, attention and engagement. I appreciate it, and, look forward to speaking with you more about, ZV in the future. Thanks.

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