Zevia PBC (ZVIA): Business Model Canvas [Dec-2025 Updated]

You're digging into the core engine of Zevia PBC (ZVIA) to see how they translate that clean-label, zero-sugar promise into real revenue, and the Business Model Canvas defintely shows the playbook. It's a classic asset-light structure, meaning their success hinges less on owning bottling plants and more on brand power and getting shelf space to hit their projected $162 million to $164 million in 2025 net sales. The real financial lever here is cost control-think those productivity initiatives targeting $20 million in annualized savings by 2026-all while keeping their value proposition of simple, plant-based ingredients front and center for the health-conscious shopper. Keep reading to see the nine building blocks that make this model tick.

Zevia PBC (ZVIA) - Canvas Business Model: Key Partnerships

Co-packers and contract manufacturers for production

Zevia PBC relies on a network of third-party contract manufacturers to produce its products. These partners procure packaging and ingredient materials based on Zevia PBC's rolling forecasts. The initial three months of each forecast generally establish the purchase commitment with these manufacturers. The broader United States Beverage Contract Bottling and Filling Market was valued at $4.13 billion in 2025.

Major national and regional distributors for logistics

Zevia PBC distributed its products across more than 37,000 retail locations in the U.S. and Canada as of the end of 2024. The company's Q2 2025 net sales of $44.5 million were positively impacted by distribution gains across grocery, club (Costco rotations showed record same-store sales), and drug channels.

Key retail partners like Walmart for expanded shelf space

The expansion with Walmart has been a significant focus, moving from 800 stores to over 4,300 locations nationally by late 2024/early 2025. This expansion was a primary driver for the 11.6% increase in cases sold in Q4 2024. Zevia PBC's Q3 2025 net sales of $40.8 million reflected incremental regional rotations at the club channel alongside Walmart performance.

The success in existing Walmart stores showed consumers purchasing 4x more Zevia products per household versus competition (data through August 2024). Zevia PBC also launched in 8,000 Walgreens stores and secured a better-for-you set at Albertsons.

Stevia and natural ingredient suppliers for core inputs

The core input, stevia leaf extract, is procured from a large multi-national ingredient company under a two-year agreement that began on October 15, 2023, which includes fixed pricing for the term. Zevia PBC also approved a second stevia leaf extract supplier in 2023. Zevia PBC does not hold long-term supply agreements with flavor ingredient suppliers.

Digital marketing agencies for brand campaigns

Selling and marketing expenses for Zevia PBC were $12.7 million, representing 31% of net sales in Q3 2025. The marketing expense component specifically rose to $4.9 million, or 12.1% of net sales in Q3 2025, to fund brand marketing investment. This followed Q1 2025 marketing expenses of $15.3 million, or 40.3% of net sales.

• The Jelly Roll "Get The Fake Outta Here" campaign delivered 2.4 billion earned impressions.
• Full Year 2025 net sales guidance is set between $162 million and $164 million.
• Zevia PBC ended Q3 2025 with $26 million in cash and cash equivalents.

Zevia PBC (ZVIA) - Canvas Business Model: Key Activities

You're looking at the core engine driving Zevia PBC's performance as of late 2025. The focus is clearly on scaling the top line while aggressively managing the cost base to hit that 2026 profitability goal. Here's the quick math on what the company is actively doing.

Strategic distribution expansion into new channels

Zevia PBC is pushing hard to get its product in front of more consumers, which directly translated to a 12.3% year-over-year net sales increase in the third quarter of 2025, reaching $40.8 million.

This growth is heavily reliant on securing and growing shelf space in key retail environments. The distribution network now spans more than 37,000 retail locations across the U.S. and Canada, covering grocery, drug, warehouse club, mass, natural, convenience, and ecommerce channels.

The expansion efforts are concrete:

• Walmart presence grew from 800 to 4,300 stores following a Q4 2024 expansion.
• Albertsons increased Zevia PBC's shelf space by 30% in the second quarter of 2025.
• The company re-entered the club channel in Q2 2025.

The focus is now shifting from just gaining doors to driving velocity within those existing doors, though management still sees opportunity for new distribution points.

Executing Productivity Initiatives for cost savings (targeting $20 million annualized by 2026)

The Productivity Initiative is central to the path to profitability, targeting $20.0 million in annualized benefits across cost of goods sold and operating expenses. As of late 2025, the execution is well underway.

The financial impact of these operational improvements is visible in the expense structure. Selling expenses in Q3 2025 were $7.7 million (or 18.9% of net sales), down from $8.5 million (or 23.3% of net sales) in Q3 2024, with savings attributed to warehousing and freight transfer costs resulting from this initiative. This focus helped Zevia PBC achieve its first-ever positive adjusted EBITDA of $0.2 million in Q2 2025.

Here is the status of the cost savings realization:

Product innovation and flavor development (e.g., new soda flavors)

Product innovation is a key pillar, designed to resonate with the consumer base in the better-for-you segment. New flavor introductions are a direct activity to drive volume and velocity.

New product launches in 2025 included Strawberry Lemon Burst and Orange Creamsicle, which achieved top velocities upon release. Management continues to focus on improving taste within the core soda offerings.

Brand marketing and digital engagement (e.g., 'Soda Made Better' campaign)

Zevia PBC is actively investing in brand awareness, funding these efforts by reinvesting a significant portion of the cost savings realized from the Productivity Initiative. The brand messaging centers on the concept of 'Soda Made Better'.

Marketing expenditure in Q3 2025 was $4.9 million, representing 12.1% of net sales, which is an increase from $3.5 million (or 9.7% of net sales) in Q3 2024. This reflects a doubling of the marketing spend as a percentage of revenue from 6% in the prior year to 12% in Q2 2025.

Key marketing and packaging activities include:

• The 'Get the Fake Outta Here' campaign delivered record earned impressions in Q2 2025.
• The new packaging refresh is expected to improve in-store communication.
• Proprietary survey data showed double-digit gains in brand consideration and purchase intent in Q3 2025.
• Research indicated the new packaging could increase purchase intent by 60%.

Supply chain and inventory management to improve gross margin

Managing the supply chain is critical, especially given external pressures like aluminum tariffs and the costs associated with the packaging refresh. These factors directly impacted the gross profit margin in the third quarter of 2025.

The Q3 2025 gross profit margin was 45.6%, a 3.5 percentage point reduction from 49.1% in Q3 2024. This decline was primarily due to higher inventory losses tied to the packaging transition and the full realization of increased tariffs. As of the Q3 2025 Stephens Conference update, the effective margin was approximately 47%.

Despite these headwinds, unit economics show improvement over the longer term. Contribution margin improved significantly:

The company is targeting gross margins in the upper 40s to low 50s starting in Q1 2026, which will be supported by the realization of the final $5 million in productivity savings and potential pricing actions. As of September 30, 2025, Zevia PBC maintained a healthy balance sheet position with $26.0 million in cash and cash equivalents and no outstanding debt, plus an unused credit line of $20 million.

Zevia PBC (ZVIA) - Canvas Business Model: Key Resources

You're looking at what Zevia PBC actually owns that makes its business run-the tangible and intangible assets that are tough for a competitor to copy overnight. The foundation here is definitely the Zevia brand itself, which carries the equity of being a zero-sugar, clean-label beverage alternative. This brand equity is tied directly to its intellectual property (IP) surrounding its unique, naturally sweetened formulations.

When we look at the balance sheet as of the end of the third quarter of 2025, the immediate liquidity position is clear. Having no outstanding debt provides operational flexibility, which is a key resource in a tight consumer packaged goods (CPG) environment. Here's the quick math on their immediate financial firepower:

This liquidity position, totaling $46.0 million, is a critical resource for funding inventory, marketing spend, and distribution expansion, especially as the company works toward its 2026 profitability goal. Also, remember that the company raised its full-year 2025 net sales guidance to a range of $162 million to $164 million, showing the management team is successfully deploying these resources.

Beyond the balance sheet, the company's non-financial credentials act as significant resources, signaling trust and alignment with modern consumer values. These are the assets that help open doors with major retailers like Walmart and club stores, where volume grew 12.6% in Q3 2025.

• Non-GMO Project Verified status for all beverages.
• Designation as a Certified B Corporation, reflecting its status as a Delaware public benefit corporation.
• An experienced management team, including President and CEO Amy Taylor and CFO Girish Satya, actively driving CPG growth initiatives.

The management team's focus is evident in their Q3 2025 performance, where they beat guidance and raised the full-year Adjusted EBITDA loss expectation to a better range of a $5.0 million to $5.5 million loss. That focus is a resource in itself. Finance: draft 13-week cash view by Friday.

Zevia PBC (ZVIA) - Canvas Business Model: Value Propositions

Zevia PBC offers a beverage platform centered on health and ingredient transparency, directly contrasting with traditional sugary sodas.

The core value proposition is built on being a zero sugar, zero calorie, naturally sweetened beverage platform. This commitment is reflected in the financial performance, where the company is projecting full-year 2025 Net Sales to reach between $162 million and $164 million. This top-line momentum, evidenced by Q3 2025 Net Sales reaching $40.8 million, up 12.3% year-over-year, shows consumer adoption of this healthier choice.

The product line is formulated with clean-label products with simple, plant-based ingredients, solely sweetened with highly purified stevia leaf extract and containing no erythritol. This focus on clean ingredients aligns with market trends, where 68% of consumers check ingredient labels, and 57% are willing to switch brands for better transparency. The operational efficiency supporting this value proposition is seen in the Gross Profit Margin, which hit 50.1% in Q1 2025.

Zevia PBC provides a better-for-you alternative to traditional sugary sodas, a segment that grew +14% across key channels in 2023. The company is a Public Benefit Corporation, legally focused on addressing global health challenges from excess sugar consumption.

The broad portfolio spans multiple beverage occasions, allowing Zevia PBC to capture a wider share of the health-conscious consumer's spending. The company's offerings include:

• Soda: Flagship line, which constituted approximately 91% of net sales in 2023.
• Energy Drinks: Containing 120 mg of organic caffeine.
• Organic Tea: USDA Organic and brewed with Fair Trade Certified Tea.
• Mixers
• Sparkling Water

The commitment to quality and dietary needs is underscored by several third-party validations:

The company maintains a strong liquidity position to support these value-driving initiatives, reporting $26.0 million in cash and cash equivalents as of September 30, 2025, and an unused credit line of $20 million. Total Debt was only $830 thousand as of the same date.

Zevia PBC (ZVIA) - Canvas Business Model: Customer Relationships

The Customer Relationships for Zevia PBC are a blend of high-volume, automated retail transactions supported by targeted digital outreach designed to foster brand affinity among health-conscious consumers. This dual approach manages the transactional nature of CPG sales while building a loyal community around its clean-label value proposition.

Automated, high-volume transactional relationship via retail

The core of Zevia PBC's customer relationship is established through broad retail placement, which necessitates an automated, high-volume transactional model. The company's distribution network spanned more than 37,000 retail locations across the U.S. and Canada as of early 2025. This physical presence drives the majority of sales volume. For instance, in the second quarter of 2025, net sales grew 10.1% year-over-year to $44.5 million, with volumes increasing by 14.3%. This transactional flow is heavily reliant on major retailers, with Q3 2025 growth specifically driven by expanded distribution at Walmart and the Club channel. The relationship here is one of convenience and availability, where the consumer selects the product based on established shelf presence and immediate need.

Targeted promotional activity at retailers to drive trial and volume

To move product off those shelves and encourage trial, Zevia PBC engages in targeted promotional activity, which is a necessary component of the high-volume retail relationship. This spend is a key lever, though it can pressure margins. In the first quarter of 2025, net sales were partially offset by increased promotional activity at retailers. The company strategically reinvests cost savings into these activities to drive volume. The selling and marketing expenses for the third quarter of 2025 totaled $12.7 million, representing 31.0% of net sales.

Here's a quick look at the retail and marketing investment context through the first three quarters of 2025:

Digital engagement through social media and online content

To build brand equity beyond the transaction, Zevia PBC utilizes digital channels for engagement. The company's marketing efforts are designed to resonate with its target segment. For example, the 'Get The Fake Outta Here' marketing campaign in Q1 2025 generated 2.4 billion positive press impressions and resulted in record social media engagement. As of the third quarter of 2025, management noted that social media engagement rates continue to be well above channel benchmarks. This digital interaction is supported by increased marketing investment; marketing expense in Q3 2025 was $4.9 million, up from $3.5 million in Q3 2024.

The digital strategy focuses on driving consumer perception metrics:

• Brand consideration showed double-digit gains in 2025.
• Purchase intent also showed double-digit gains in 2025.
• New product launches, like the variety pack at Walmart, demonstrate resonance with flavor trends.

Direct-to-consumer (DTC) e-commerce for brand loyalty and feedback

While the search results confirm Zevia PBC operates in the e-commerce channel, specific 2025 financial data for the DTC segment is not explicitly detailed. The purpose of this channel, however, is clearly defined as fostering brand loyalty and gathering direct customer feedback. This direct line allows Zevia PBC to test new product innovations, such as the Amazon-exclusive Peaches & Cream flavor mentioned in Q1 2025 updates. The ability to capture immediate feedback on new SKUs or brand messaging is a key benefit of this relationship type, informing future retail strategy.

Public Benefit Corporation (PBC) status builds trust with health-conscious consumers

Zevia PBC's legal structure as a Delaware public benefit corporation, also designated as a "Certified B Corporation," is integral to its customer relationship with health-conscious buyers. This status signals a commitment beyond pure profit, aligning with consumer values regarding health and environmental impact. The company explicitly states its focus is on addressing global health challenges from excess sugar consumption. This commitment translates into measurable impact metrics reported by the company; for instance, in Q1 2025, Zevia PBC eliminated 2.8K metric tons of sugar and kept 42 million plastic bottles from littering the environment. This mission-driven approach is a differentiator that builds trust, even as the company navigates operational risks associated with its structure.

Zevia PBC (ZVIA) - Canvas Business Model: Channels

You're looking at how Zevia PBC gets its zero-sugar beverages into the hands of consumers as of late 2025. The distribution footprint is broad, covering over 37,000 retail locations across the U.S. and Canada as of the end of 2024, a number that has been a focus for growth in 2025.

The core of the channel strategy relies on major brick-and-mortar partners, but specific channel performance is driving the recent top-line momentum.

• Distribution shelf space reached a historical peak for the brand at retail in 2025.
• The convenience channel is being used for single-serve product tests.
• E-commerce platforms, including Amazon and Zevia.com, are part of the overall channel mix.

The expansion at Walmart has been a significant volume driver. Here's a look at the scale and recent impact of key channels:

The expanded distribution at Walmart is directly translating into volume growth, which is critical for Zevia PBC to achieve scale efficiencies. For instance, in the second quarter of 2025, net sales grew 10.1% to $44.5 million, with volume up 14.3%, largely credited to Walmart distribution gains. Similarly, third quarter 2025 net sales grew 12.3% to $40.8 million, supported by volume growth of 12.6%, again citing Walmart and the Club channel.

The warehouse club channel, which handles bulk sales, saw incremental rotations contributing to the third quarter 2025 results, though it had previously experienced lost distribution in late 2024. The overall network includes major retailers across grocery, drug, mass, natural, and convenience segments.

Zevia PBC (ZVIA) - Canvas Business Model: Customer Segments

You're looking at the specific groups of people Zevia PBC is trying to serve with its portfolio of zero sugar, naturally sweetened beverages. This is about who is actually buying the product right now, based on the latest numbers we have through Q3 2025.

The core customer base is definitely the health-conscious consumer actively reducing sugar intake. This group is drawn to Zevia PBC because it offers zero sugar, zero calorie, naturally sweetened options. The company's trailing twelve-month revenue as of September 30, 2025, reached $162.85 million, showing a base of consumers willing to purchase these alternatives.

Another key segment includes diabetics and individuals following ketogenic or low-carb diets. The zero sugar attribute is the main draw here, aligning with strict dietary requirements where sugar is avoided. Zevia PBC's overall category penetration rate is noted at only 5%, suggesting a substantial runway for growth within the broader market of consumers seeking sugar alternatives.

Zevia PBC also targets families seeking better-for-you alternatives for children, supported by its dedicated Kidz drinks line. Management specifically detailed gains among millennial families during the Q3 2025 earnings call, indicating this demographic is a focus area for adoption.

These consumers are part of the much larger liquid refreshment beverage market. While you mentioned a figure of $270 billion, the most recent verified retail sales data for the U.S. liquid refreshment beverage market was $255.3 billion in 2024. Zevia PBC's Q3 2025 net sales were $40.8 million, representing a 12.3% year-on-year increase, showing traction within this massive market.

Finally, the company serves shoppers prioritizing clean-label, Non-GMO, and plant-based products. Zevia PBC explicitly states its products are made from a few simple plant-based ingredients and are Non-GMO Project Verified. The company's full-year 2025 net sales guidance remains in the range of $158 million to $163 million, reflecting the expected continued demand from these specific consumer preferences.

Here's a quick look at the key customer profile characteristics:

• Health Focus: Zero sugar, zero calorie positioning.
• Dietary Alignment: Appeals to low-carb and keto lifestyles.
• Family Appeal: Specific product line for children (Kidz drinks).
• Values Alignment: Certified B Corp status and plant-based ingredients.

We can map the key segments against the company's product platform and market context:

The distribution channels supporting these segments span the U.S. and Canada across food, drug, mass, natural, and e-commerce. Finance: draft 13-week cash view by Friday.

Zevia PBC (ZVIA) - Canvas Business Model: Cost Structure

You're looking at the core costs Zevia PBC is managing as it scales distribution, and frankly, the third quarter of 2025 shows a clear trade-off between growth investment and margin pressure. Here's the quick math on the major cost buckets for Q3 2025.

Cost of Goods Sold (COGS), including aluminum tariffs and packaging

The Cost of Goods Sold for Zevia PBC in the third quarter of 2025 was approximately $22.20 million, calculated from the reported Net Sales of $40.8 million and a Gross Profit Margin of 45.6%. This cost base was directly impacted by external pressures and internal changes. The company explicitly called out the full realization of aluminum tariffs as a headwind affecting the Gross Margin. Furthermore, a specific, non-recurring charge hit this area:

• Inventory obsolescence charges from the packaging refresh totaled $800,000 (or $0.8 million) in Q3 2025.

Selling and Marketing Expenses (S&M)

Total Selling and Marketing Expenses for Zevia PBC in Q3 2025 were $12.7 million, which represented 31.0% of the period's net sales. This total is broken down into two main components, showing a strategic shift in spending:

• Selling expenses were $7.7 million, or 18.9% of net sales.
• Marketing expenses were $4.9 million, or 12.1% of net sales.

The increase in marketing spend was driven by investments made to drive brand awareness. Still, the overall S&M percentage improved year-over-year because the selling expense component saw savings.

General and Administrative (G&A) expenses

General and Administrative expenses for the third quarter of 2025 were reported at $7.7 million. This represented 18.8% of net sales, an improvement from 20.3% in Q3 2024. The slight increase in the absolute dollar amount, up from $7.4 million in the prior year, was primarily driven by higher accrued variable compensation expense. It's important to note that G&A is a fixed-cost-like element that should decrease as a percentage of sales with continued top-line growth.

Outsourced manufacturing, warehousing, and freight costs

While the exact dollar amount for outsourced manufacturing isn't isolated from COGS, the warehousing and freight transfer costs, which fall under the Selling Expenses line, showed positive movement. These costs benefited from the Productivity Initiative. The decrease in total selling expenses to $7.7 million in Q3 2025, down from $8.5 million in Q3 2024, was largely a result of these lower warehousing and freight transfer costs. This suggests the asset-light model is yielding some operational efficiencies in logistics, even with tariff impacts elsewhere.

Here is a summary of the key operating expenses for Zevia PBC in Q3 2025:

The total operating expenses for the quarter were $21.5 million, accounting for 52.6% of net sales. That figure is a marginal increase from the $20.8 million recorded in the same quarter of 2024.

Zevia PBC (ZVIA) - Canvas Business Model: Revenue Streams

You're looking at how Zevia PBC actually brings in the money as of late 2025. Honestly, the story here is about shifting from distribution recovery to growth acceleration, with the top line reflecting that push.

The primary revenue driver remains net sales from retail distribution across the U.S. and Canada. Management has clearly signaled confidence in the trajectory, raising the full year 2025 net sales guidance to a range of $162 million to $164 million. This compares to earlier guidance, showing momentum built through the year, for instance, Q3 2025 net sales hit $40.8 million, a 12.3% increase year-over-year.

Zevia PBC's revenue base is built upon sales across a diverse platform of product categories. You see the core strength in their traditional offerings, but the portfolio is broader now:

• Soda (the original focus)
• Energy Drinks
• Organic Tea
• Mixers
• Kidz drinks
• Sparkling Water

Revenue capture isn't just about shelf space; it's multi-channel. While retail is the bulk, revenue from e-commerce and direct-to-consumer sales is a noted component, with specific product launches like the Amazon-exclusive Peaches & Cream flavor driving engagement there. The company derives a majority of its revenue from the United States, but distribution in Canada is also a factor.

A significant part of the recent sales uplift is volume-driven revenue stemming from expanded distribution. The company specifically called out strong sell-through and growth driven by expanded placement at Walmart nationwide and success in the Club channel. For example, Q2 2025 net sales growth of 10.1% to $44.5 million was largely driven by improved volumes of 14.3%, which management attributed to this expanded distribution.

To keep the top line moving, Zevia PBC has been actively managing its pricing strategy. You see evidence of price realization gains, which helped boost Q2 2025 net sales, but these gains are consistently being used to offset the costs associated with promotional activity at retailers. This is a constant balancing act; for instance, the Q2 volume gains were partially offset by increased promotional activity.

Here's a quick look at the key revenue drivers and their recent performance indicators:

The company is clearly leaning on distribution expansion and product innovation to drive the volume component of revenue, while actively managing the price realization versus promotional spend trade-off to protect the realized net sales figure. Finance: draft 13-week cash view by Friday.