Suja Life (NASDAQ:SUJA) lowered its full-year sales and adjusted EBITDA outlook after weaker grocery traffic and more aggressive discounting disrupted its expectations for a stronger fourth quarter.
The beverage company reported third-quarter net sales of $76.4 million, up 3.3% from a year earlier and ahead of the approximately $71 million estimate it shared in August. The result included roughly $2 million in shipments that moved forward from the fourth quarter.
Chief Executive Officer Maria Stipp said grocery pressure that began in July had intensified, with softer store traffic and promotions producing lower returns. Although Suja gained share in its category and grew in other channels, the company no longer expects the fourth-quarter improvement it had planned.
“Distribution only creates value when it turns,” Stipp said, noting that new placements and some core single-serve grocery products were selling less on average than a year earlier.
Lower Outlook and a Slower Start to 2027
Suja now expects full-year net sales of $351 million to $354 million and adjusted EBITDA of $68 million to $70 million. The outlook assumes current grocery conditions persist through year-end and implies fourth-quarter sales of $83.7 million to $86.7 million and adjusted EBITDA of $17.8 million to $19.8 million.
Chief Financial Officer Jeff Pedersen said the fourth-quarter outlook includes elevated trade investment, which is recorded as a reduction in net sales. Suja is moving some spending from upper-funnel marketing into trade programs, a shift Pedersen said reduces reported sales and gross margin but is largely neutral to adjusted EBITDA.
For 2027, Stipp said she expects a growth year, but a slower start followed by improving growth as new distribution, retail programs and innovation reach shelves. Pedersen said the company faces difficult first-half comparisons, continued grocery pressure, elevated promotions and the loss of a significant customer program it does not expect to repeat. Suja plans to provide formal 2027 guidance on its fourth-quarter call in March.
Profit Improves Despite Margin Pressure
Third-quarter adjusted EBITDA increased to $10.5 million from about $1 million a year earlier, primarily reflecting lower marketing expense as Suja lapped the prior-year launch of Slice. Net loss narrowed to $8.3 million from $14.6 million.
Gross margin fell to 43.9% from 46.3%, below the approximately 47.8% estimate Suja gave in August. Pedersen attributed the decline to increased promotional investment, lower production volumes that reduced fixed-cost absorption, and higher inbound freight and packaging costs tied to oil prices. He said gross margin should improve sequentially in the fourth quarter as seasonal production volumes rise.
Marketing spending fell to $8 million, or 10.5% of sales, from $17.1 million, or 23.2%, a year earlier. The prior-year period included one-time investment behind the Slice launch.
Club and Convenience Growth Offset Grocery Weakness
Stipp said Suja’s share of the natural healthy beverage category rose approximately 30 basis points to just over 9% in the quarter, according to Nielsen. She said the company was the only one of the category’s five largest manufacturers to gain share during the period.
Nielsen-measured sales grew nearly 20% in club, more than 40% in convenience from a small base, and about 6% in mass. Stipp said convenience accounts for 3% of Suja’s business and is a focus for further distribution growth in 2027. In the food channel, Nielsen sales declined 1.7%.
Within the portfolio, Nielsen-measured sales of Suja Organic Refreshers grew more than 40%, while Boosted Juice grew more than 18%. Wellness shot multipacks grew, but single-serve shots softened. Stipp said Suja had increased promotions to match competitors’ pricing and largely protected share for both Vive and Suja shots.
Slice net sales increased 3% to $2.7 million in the quarter, while its year-to-date sales rose 31%. Stipp said better-for-you soda growth moderated and new distribution built more slowly than expected. In response to an analyst’s question, she said Suja was not pulling back from Slice, but was focusing on flavors and retail opportunities that best suit the brand.
Refinancing Lowers Interest Rate
Suja completed a refinancing in August that included a $165 million term loan maturing in 2031. Pedersen said the company’s effective interest rate fell to 5.7% from 9.7% at the end of the prior year, without adding leverage.
At quarter-end, Suja had $15.5 million in cash and $163 million in total debt, along with $100 million in undrawn capacity under its revolving credit and delayed-draw facilities.
About Suja Life (NASDAQ:SUJA)
Suja Life is a health and wellness beverage company focused on producing and distributing organic, non-GMO drinks. Its portfolio has historically included cold-pressed juices, juice blends, wellness shots and other functional beverages designed to support everyday health and nutrition. The company is best known for its Suja Organic brand, which offers products made with fruit, vegetables and other plant-based ingredients. Its offerings have been sold through grocery stores, mass retailers, natural-food outlets, e-commerce channels and other distribution partners, primarily in the United States.
