Activist investor calls on Zevia board to sell business

Activist investor Kanen Wealth Management has urged Zevia's board to review the company's strategy, considering a potential sale of the zero-sugar soft-drinks maker. In a letter dated August 14, Kanen stated that Zevia is worth $2.75 to $3.75 per share in a sale, more than double its current price of $1.30. Zevia's shares fell to $1.30 on Thursday, with the company's share price down over a third year-to-date.

Kanen owns about 4% of Zevia, which sells stevia-sweetened beverages in the US and Canada. The investor claims Zevia has failed to capitalize on growth in the modern soda category despite having valuable assets, such as nearly 20 years of brand equity and national distribution. Kanen argues that Zevia's enterprise value of about $100m lags behind transaction benchmarks, like PepsiCo's 2025 acquisition of Poppi.

The activist investor believes the company has had ample time and capital to address its issues but has not done so. Kanen also criticized Zevia's governance, questioning the board's process in appointing Alexandre Ruberti as president and CEO following Amy Taylor's resignation. Zevia responded by welcoming open communication with shareholders and stated its board and management regularly review strategic priorities to enhance shareholder value.