Zevia is the hottest stock in the beverage sector as consumers eye zero-sugar alternatives

Zevia PBC (NYSE:ZVIA) soared 22.5% in afternoon trading on Monday and was swapping hands at its highest levels since January.

Investors may be latching on to the news from last week that Zevia PBC (ZVIA) is expanding its Walmart (WMT) distribution this month from +800 stores to now being available nationally in more than 4,300 locations. “Our exciting expansion with Walmart is built around a multi-year insights-based effort to provide a better understanding and thus a clearer definition of the Better-for-You soda category – past, present and future,” stated Zevia (ZVIA) Chief Executive Officer Amy Taylor. “

During the company’s earnings conference call, Zevia (ZVIA) management expressed confidence in the strong sell-through it saw in key strategic channels during Q3. Grocery channel scanner indicated dollar growth of 8% and unit growth of 9% for the quarter. The strong consumer response to new Zevia (ZVIA) flavors was also highlighted.

Looking ahead, Zevia (ZVIA) is optimistic about the growing movement in better-for-you soda, a category which it noted is expected to grow three times faster than CSD over the next five years. “Through amplified marketing, focused distribution expansion, and product innovation, we believe we are well positioned to be the long-run leader in natural soda. We are building a clear path to both re-accelerate growth and deliver significant improvement in adjusted EBITDA,” highlighted Taylor.

Zevia (ZVIA) is the top gainer in the beverage sector over the last six weeks, with a 72% rally.