Two of those releases recently caught the attention of the Securities and Exchange Commission, which in January asked the flavored seltzer company to clarify what its billionaire chairman and chief executive, Nick Caporella, meant when he wrote that the company had “magnified” two proprietary sales metrics to create “growth never before thought possible.”
In the first of the two releases, dated May 4, 2017, Mr. Caporella wrote: “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.”
The following day, a release described a VPO calculator “flashing solid green numbers as we bring FY2017 to close.”
The SEC asked the Fort Lauderdale, Fla.-based company to provide “a discussion of these measures along with comparative amounts or explain why you do not believe this disclosure is necessary,” according to securities filings.
In correspondence with the agency disclosed in those filings, National Beverage declined to provide the requested figures.