Zevia PBC has entered into a definitive agreement with a fund managed by GP Investments Ltd. for a $20 million growth equity investment designed to support the beverage company’s strategic reset and long-term growth initiatives.
Under the agreement, Zevia will issue Series A Senior Convertible Preferred Stock to GP Investments. The preferred shares will be convertible into Zevia Class A common stock at an initial conversion price equal to 120% of the volume-weighted average price of the company’s shares over the 10 trading days preceding the signing of the agreement.
The convertible preferred stock carries a 6% dividend that will be payable in kind. GP Investments will also have the right to designate a director to Zevia’s Board of Directors.
The investment follows a strategic review conducted by Zevia and its board with financial advisor Piper Sandler. Over the past 12 months, the company evaluated a range of strategic and financing alternatives before determining that the GP Investments transaction provided the preferred path for supporting its growth strategy.
Zevia plans to use the additional capital to strengthen its balance sheet, increase financial flexibility, and fund investments across product development, marketing, distribution, and digital commerce.
The company’s strategic reset includes accelerating product innovation with an emphasis on expanding Zevia’s better-for-you beverage portfolio. Zevia intends to introduce products targeting additional consumption occasions while increasing its appeal among Gen Z and Millennial consumers.
Product development efforts are expected to focus on areas such as functionality, taste, flavor variety, and broader brand relevance. Zevia also plans to pursue adjacent higher-growth beverage categories that could expand its addressable market.
Digital demand generation represents another major component of the strategy. Zevia plans to shift more marketing investment toward lower- and mid-funnel digital channels, including creators and micro-influencers, while using data to improve customer acquisition, engagement, and conversion across retail and e-commerce.
Zevia is also implementing a hybrid go-to-market strategy intended to increase household penetration. This includes continued investment in its West Coast direct store delivery infrastructure, greater use of third-party merchandising partners in markets outside its DSD network, and expanded activity across e-commerce marketplaces.
The company is also planning a targeted single-can strategy intended to encourage product trial while optimizing multi-pack offerings to increase basket size and repeat purchases.
Alongside the financing announcement, Zevia provided preliminary third-quarter 2026 results that exceeded its previous guidance.
The company now expects third-quarter net sales of approximately $48 million, compared with its prior guidance range of $44 million to $46 million. Adjusted EBITDA is expected to range from negative $900,000 to negative $1 million, an improvement from the previous guidance range of negative $3 million to negative $3.5 million.
Zevia plans to report its full third-quarter 2026 financial results on November 4, 2026, after the market closes.
Piper Sandler served as financial advisor to Zevia. Ropes & Gray LLP served as legal counsel to Zevia, while Skadden, Arps, Slate, Meagher & Flom LLP represented GP Investments.
KEY QUOTES:
“This growth equity investment marks an important milestone in Zevia’s evolution and provides the capital, strategic resources, and operational expertise to accelerate our medium- and long-term growth agenda. GP Investments brings a proven blueprint for building category-leading consumer businesses. The firm, founded in the early 1990s by the entrepreneurs behind ABInbev and 3G, brings that DNA blending active ownership, operational excellence, and disciplined capital allocation.”
Alexandre Ruberti, Chief Executive Officer Of Zevia
“We are thrilled to partner with Zevia and help support accelerated profitable growth. The team’s execution strengths and clear growth plan give us confidence in Zevia’s potential to become a leading everyday alternative to traditional soda, as consumers increasingly seek healthier options without artificial sweeteners. As a healthier clean label better for you beverage alternative with a loyal consumer base and established retail presence, Zevia has a strong foundation to broaden its reach by expanding single-can availability, extending distribution and developing products for new consumption occasions.”
Rodrigo Boscolo, Chief Executive Officer Of GP Investments
“Following a transformational two-year period focused on streamlining and strengthening the business, we now have a solid foundation to execute our next phase of growth. This financing represents a pivotal step in that evolution, creating additional balance-sheet capacity, bringing in a seasoned investor with a strong track record of success across a broad range of consumer sectors and providing the flexibility to accelerate and capitalize on the tremendous opportunity to become the most trusted and chosen better-for-you brand in every category we serve.”
Girish Satya, Chief Financial Officer Of Zevia