Thursday, June 28, 2018
If you're teaching securities regulation and touch on GAAP v. Non-GAAP metrics, you may catch millennial attention by talking about National Beverage Corp., notable to millennial audiences as the maker of LaCroix. National Beverage's CEO put out a press release saying that:
National Beverage employs methods that no other company does in this area – VPO (velocity per outlet) and VPC (velocity per capita)… Unique to National Beverage is creating velocity per capita through proven velocity predictors. Retailers are amazed by these methods.
If you're looking to evaluate the company's financial situation, more clarity on these metrics might help. The SEC reached out to ask for that information and got an odd response from a company executive, claiming that the "information is as secretive as the formulas of our beverages and should not be disclosed to our competition."
It's odd to tell the market that it should get excited about particular metrics and then refuse to provide information about what the metrics mean. This little tempest may also be a good way to touch on puffery again.