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Bloomberg Businessweek August , 2019MichaelBublé.(Getit?)Alittlemorethanayearin,Bublyhas
surpassed$170millioninsales,anditsshareofthesparkling
watermarkethasjumpedabout 3 percentagepoints,to7.7%.
What’smore,LaCroixcan’tmatchthedistributionheftofthe
beveragegiantslikeCokeandPepsi,whichsendconvoysof
trucksdirectlytostoresandrestaurantsintheU.S.National
Beveragedependslargelyonretailerspickinguptheproduct
fromwarehouses.ThatlimitsLaCroix’sreach,analystssay.
Afloodofprivateequitymoneyhasbackedothercompe-
tition,includingSpindrift,theBoston-areastartupthatlured
awayNationalBeverageexecutives.Ittouts“farmtobubble”fla-
vorsextractedfromrealfruitjuices.WaterlooSparklingWater
Corp.,fromTexas,promises“abigger,brighterbubble.”Pep
Talk,outofMinneapolis,has“energeticbubbles”(i.e.,caffeine).
MountjoySparkling,fromPetaluma,Calif.,boastsnocarbs,no
sugars,and“fast-acting”CBD.
Withsomuchmoneysloshingaround,another,biggerbub-
blecouldbeforming,butuntilitpops,LaCroixhasabull’s-
eyeonitsback.“There’smoresharetobetakenfromLaCroix
becausethey’vehadthetopspotforthelongesttime,”says
BrandonCason,Waterloo’sco-founderandchiefmarketing
officer.Hiscompanyisseekingtocompeteprimarilyonflavor.
“Ifyou’redrinkingaLaCroix,there’sahintofaflavor,butit’s
verytinny,it’sverythin.There’snotalotthere,”Casonsays.A
Waterlooin-housefoodscientisthashelpeddevelopflavorsthat
Casoncallsmore“realistic”and“delightful,”suchasagrape
modeledafterthegrapesodaofhisyouthandawatermelon
hesaysis“playful,almostlikeaJollyRancher.”
Withallthiscompetition,LaCroix’smarketshareinthe
fourweeksendedJune 16 haddroppedbyalmost 4 percent-
agepointsfromthesameperiodin2018,to14.5%,whileBubly,
Spindrift,andWaterloosawtheir
marketshareincrease,accord-
ing to data from Bloomberg
Intelligence.Andwhereasanalysts
onceviewedNationalBeverage’s
sugarysodabrandsasadragon
thecompany,LaCroixhasbecome
the causefor worry.Based on
Nielsendata,salesarenowfalling
fasterthanthoseofthecompany’s
sodacategories,saysSeanKing,a
U.S.beverageanalystatUBS.he 83-year-old Caporella
rarely discusses details of
his life, even with his clos-
est advisers; he declined multiple
interview requests for this story.
A number of former employees,
executives, and business associ-
ates agreed to speak about him
only on condition of anonymity,
citing fear of retribution. These
people say he almost never shakes
hands; upon greeting people,heclencheshisfistandoffersa“pinkieshake.”Employees
preparing to meet him for the first time are coached not to
speak to him unless spoken to first. Multiple people describe
a man who could explode at any moment, berate anyone who
crossed his path, and veer into what some describe as verbal
abuse. “If somebody made a mistake, it would be ‘you’re a
good-for-nothing’ or ‘you’re an expletive this and an expletive
that,’ ” says a former employee.
In meetings, Caporella often speaks for the duration, regal-
ing managers with tales of his battles and successes, to the point
that they’re known internally as “Nick Parables.” Top manag-
ers are urged to write “letters to the chairman” congratulating
Caporella whenever the company achieves something big, such
as a stock price high. They’re also expected to write apology
letters if, say, they come unprepared to a meeting. Few dare
incur Caporella’s wrath or that of his son by challenging them.
Anything short of adoration for one of Caporella’s new package
designs could result in being excluded from future meetings.
Disagreement could be met with a stern reminder that LaCroix
was “M-I-N-E,” according to a person who heard him say it.
With National Beverage’s resurgence, some employees began
to feel that the celebration of LaCroix, at least internally, had
become more like worshipping in the Cult of Caporella. They
recall a Thanksgiving event that turned into a “Nick love fest.”
It was “This is Nick’s brainchild, this is Nick who’s gotten us to
where we are,” one former employee says. “It was all about Nick
and the money that was being generated because of Nick.” The
company, which employs 1,640 people, disputes this character-
ization, as do some current and former associates. “I’ve seen
Nick not happy with outcomes of things,” Phillips says. “But
I’ve never heard him raise his voice.” He and Thompson say in
meetings Caporella can be criti-
cal and “harsh” toward his son
Joe, but the tough love doesn’t
extend to others. “Nick is pas-
sionate and can be demanding of
himself and others, but is always
fair and level-headed in dealing
with people,” Bracken said in an
email. Even some of Caporella’s
strongest critics acknowledge his
generosity.EveryChristmas,he
handsoutgiftbagstoemployees
containingahoney-baked ham.
He recently sat on a fundrais-
ing board for St. Jude Children’s
ResearchHospital.n late 2017, the biggest spar-
kling water brands began
flooding the market with
heavily discounted products.
Retailers in turn asked for dis-
counts on LaCroix and more
in-store spending to continue
prominently displaying the26