Kanen Wealth Management urges Zevia to explore a sale

Kanen Wealth Management LLC, which holds approximately 4% of Zevia PBC (NYSE: ZVIA) shares, has sent a letter to Zevia's board of directors urging the company to initiate a formal review of strategic alternatives, including a potential sale of the company.

In the letter, Kanen estimated Zevia's value at $2.75 to $3.75 per share in a sale, which it said represents more than double the stock's closing price of $1.35 on Aug. 12, 2026, at the midpoint. The estimate is based on 1.5x to 2.0x forward net sales and accounts for a full deduction of the company's $59.2 million Tax Receivable Agreement liability.

Kanen pointed to recent transactions in the modern soda category as context for its valuation. PepsiCo acquired Poppi in March 2025 for $1.95 billion, approximately 3.9x sales, while Olipop was valued at $1.85 billion in a February 2025 financing round. Zevia's enterprise value stands at approximately $100 million, or roughly 0.6x forward net sales, according to the letter.

The firm cited Zevia's financial performance as a basis for its call. Between 2022 and 2025, the company spent $224.7 million on selling and marketing while net sales declined from $163.2 million to $161.3 million. The modern soda category grew 83% to $1.8 billion in 2024, while Zevia's net sales fell 6.8% that same year.

Kanen also raised concerns about the company's CEO transition. Amy Taylor resigned on June 10, 2026, the same day as Zevia's annual meeting, and a signed offer letter to her successor, Alexandre Ruberti, was dated the same day. Ruberti previously served as the board's Compensation Committee Chair. The company disclosed the transition in a Form 8-K filed five days after the annual meeting.

The letter also noted that five non-employee directors received a combined $905,265 in compensation during fiscal 2025, a year in which the company reported a net loss of $11.2 million and an adjusted EBITDA loss of $4.7 million.

Kanen called on the board to form an independent special committee and retain a financial advisor to conduct a sale process.

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