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Another lawsuit against LaCroix removes the fizz from its stock.
Shares of National Beverage Corp., LaCroix's parent company, dropped more than 10% on Tuesday after a new lawsuit that the president of National Beverage was planning to falsely claim that LaCroix cans were free of Bisphenol A, the chemical known as BPA.
The complaint, filed Thursday in the Superior Court of Pbadaic, claims that Albert Dejewski, a former LaCroix executive, was falsely fired after sending an email to National Beverage President Joseph Caporella, raising objections to the The company's plan to announce that its cans were free of BPA. National Beverage denied the charges in a statement to Business Insider.
"In April 2019, all the boxes manufactured for LaCroix products were made without BPA lining," the statement said. "The FDA has stated that BPA coatings are safe and do not pose a risk to traces found when used in canned food and beverage liners."
The lawsuit is the second lawsuit filed against LaCroix in the past year. In October, a lawsuit alleged that the company was lying about its claims that LaCroix was "all natural" and actually contained artificial ingredients, which LaCroix denied.
Laurent Grandet, an badyst at Guggenheim Securities, wrote in May that it was "unlikely that the brand will rebound" and that the company is "in free fall".
LaCroix sales fell 9.4% over a 12-week period that ended in May, according to Nielsen data, as customers opted for one of the many competing sparkling water brands. .
In March, the company announced that its profits had decreased by 40% to $ 24.8 million, while its revenues had dropped by 2.9% to $ 220.9 million.
National drinks fell by 34% this year until Monday.
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