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Laird Superfood scored 39% growth in Q3 in wholesale biz that has become its main focus while allowing its original DTC biz to find its level and weathering the twin storms of soaring coffee prices and Trumpian tariffs. On investor call yesterday afternoon, CEO Jason Vieth also offered more details about a pair of key launches: its move into the TikTok-fueled protein coffee space and its latest effort to get it right with the liquid creamers that rep a key velocity-building oppty in grocery. As first dairy-based item for brand associated with plant-based items, the protein coffee presages broader push into dairy bevs over coming year, in both powdered and liquid formats, Vieth affirmed to questioner, move that he stressed is totally in synch with "omnivorous" diets of founders Laird Hamilton, the big-wave surfer, and his wife Gabby Reece, the volleyball star. Oh, and there also was some good news on tariffs: the feds just decided to carve out a key LSF input, coconut milk, in move that CFO Anya Hamill figures could save the co $1 mil next year (if things don't change again). LSF, recall, was founded as DTC play offering mushroom-based powdered creamers and coffees, operating as vertically integrated co out of remote corner of Oregon under leadership of friend and biz partner of founders. But complicated operating model soon ran off the tracks even as DTC became harder segment to play in as customer acquisition costs soared. So Vieth was brought in to turn around publicly traded co. From his base in Colo, LSF now follows completely outsourced model and, with some setbacks along the way, has managed to accomplish difficult feat of keeping co growing while moving it closer to break-even operation.In Q3, net sales rose 10% to $12.9 mil, +14% excluding fast-declining Picky Bars food brand that was acquired under prior mgmt and is now being discontinued with $661K impairment charge. Wholesale biz soared 39% to $6.8 mil and now reps more than half total biz, 53%, in keeping with his strategy of transitioning LSF to being "a wholesale-led" co. Ecomm sales fell 11% to $6.1 mil as LSF backs off DTC spending and relies more on Amazon, tho Vieth noted that brands across food/bev spectrum lately seem to have suffered slowdown on that platform. Gross margin contracted to 36.5% from 43%. Some 3 pts of that was result of adverse comparison vs year-earlier settlement payment by copacker responsible for production meltdown with rest attributed mainly to tilt to lower-margin wholesale side and rising input costs, including tariffs. Operating loss widened to $996K from $269K. Still, co is "well on the way to breakeven and profitability," CFO assured. Among examples of tite mgmt in dynamic environment, Vieth and Hamill cited co's ability to draw down $1 mil of inventory it had strategically stockpiled in first half to avoid repetition of last year's out-of-stocks and shield co from tariffs on raw matls, particularly those like coconuts from SE Asia. For YTD, sales are up 15% to $36.5 mil and operating loss $1.6 mil vs year-earlier $1.7 mil.By segment, core Coffee Creamer segment enjoyed 23% boost to $7.7 mil. Coffee, Tea & Hot Chocolate scored 22% boost to $4 mil. Hydration segment dropped 37% to $1.6 mil. Snacks & Other Food, including exiting Picky Bar, fell 7% to $4.2 mil.Still Holding Line on Pricing Despite Pressures Tho coffee prices have been on steep climb, LSF did a nice-enough job of acquiring its coffee throughout 2025 to hold line on price so far, Vieth informed investors. Still, if climb continues, it may need to take some pricing. In context, during inflationary period in food/bev LSF has made concerted effort in recent years to hold line on price, with benefit of capturing volume and nice retail distribution pts. (We'll note that that echoed actions of some gut pop players too, who saw their premium to conventional CSDs narrow at key inflection pt in their growth cycle.) "In total we've taken $1 at retail in the last few years," Vieth said. That's left Laird brand positioned as one that's "a premium but not ridiculously priced play" for retailers.Protein Coffee Due in Weeks Dubbed "proffee" by some, protein coffee has been comin' on strong as consumers post pictures on social media of them blending protein powder into their coffee. It's also neat fit with GLP-1 weight loss drug trend. So for Laird it reps big oppty that plays in its wheelhouse of clean nutrition. But it also reps a divergence from plant-based identity to date. Still, Vieth insisted that co "always intended to go here," since dairy sector is 10X as big. So it will build out sibling powder brands in adjacent categories as well as liquid brands over coming 15 mos.Tho co is still reserving details, new powdered line employs organic Peruvian beans grown at high altitude, melded with functional mushrooms and 10 g of protein from what CEO described as "pretty unique blend of dairy protein." It contains no sugar and low calorie count. Items froth well.Unidentified retail partner has been recruited for launch next month, via shippers placed on floor, at same time it breaks online. It will be backed not just with Hamilton and Reece's activation but range of 3d-party influencers and retail activations. "Strongest launch effort in my tenure here," Jason said. "We'll make a big deal out of the fact that we're getting into dairy."Immediately After Restage, Liquid Creamer Revamps Again, This Time with Switch to PET As noted, push into liquid creamers has been tortuous, and Vieth didn't disguise that most recent restage, with upsizing from 500-ml resealable carton to 750-ml carton more in synch with other players in space, was botched as co failed to communicate clearly enough that higher price was for higher amount of liquid and repped better value. A "self-inflicted wound," he allowed. Still, tho unit volume declined as expected, line drew commensurate increase in dollar sales.By Vieth's account, co now is ready with another revamp that reps step-change improvement. For starters, it's switched copackers, dropping cartons for PET bottle, but one that's post-consumer-recycled in synch with core users' tenets. As significantly, formula has been completely rethought to replace coconut oil with coconut cream, increase dosage of adaptogenic mushrooms and replace cane sugar with coconut sugar, which has lower glycemic index. Taste and texture are "far superior." (We've noticed in our own usage that liquid could have offputting sludgy consistency.) It just shipped to Whole Foods and a few other customers in past week.

Laird Superfood's Wholesale Biz Spikes 39% in Q3; Total Revamp of Liquid Creamer Includes Switch to Plastic Bottle; Protein Coffee Hits Market Next Month

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