Vita Coco

The Vita Coco Company, doing business as simply Vita Coco, is an American beverage company which mainly sells coconut water. The largest brand globally in coconut/plant waters, Vita Coco has operations in 31 countries as of 2016.[2][3] It is a benefit corporation.[4] The company is owned by All Market Inc.[5]

The Vita Coco Company
The Vita Coco Company
TypePublic
Nasdaq: COCO
IndustryDrink
Founded2004 (2004)
Founder
  • Michael Kirban
  • Ira Larin
Headquarters250 Park Avenue South, New York City, NY 10003
Brands
  • Vita Coco
  • Runa
  • Ever & Ever
  • PWR LIFT
Revenue
  • Increase US$427.79M (2022)[1]
OwnerAll Market Inc.
Websitevitacoco.com

History

Vita Coco was started after Michael Kirban and Ira Larin[6] met two Brazilian women in a New York City bar in 2003 and asked them what they had missed the most about their home country, with them answering coconut water. Noticing that there could be a potential business in bringing the drink to the States, the two thought about starting a business, but Larin sold everything he owned, married one of the Brazilian women, and went to Brazil. On a visit to Brazil to see Larin, Kirban noticed the prevalence of coconut water in many of the stores he went to, and decided to enlist Larins help to start the company, succeeding in 2004.[2][7][8]

The two found a local co-manufacturer and a distributor centered in lower Manhattan and Brooklyn, and Kirban roller-skated through neighborhoods, selling the drink and offering samples. In 2009, The Coca-Cola Company and PepsiCo entered the market via acquisitions of Zico and O.N.E., respectively, sparking "The Coconut Water Wars." Vita Coco ended up defeating the competitors and held its place as the brand with the largest market share.[9] The company, which mainly sourced its coconuts from Brazil, expanded its operations to Southeast Asia, starting in the Philippines. The brand was initially laughed at due to the status of coconut water in these countries as a byproduct, but they consented to an offer for the right equipment in exchange for a long-term exclusive supply agreement. After the Philippines, the company contacted coconut farmers in Sri Lanka, Indonesia, Malaysia, and Thailand and offered the same contract.[4]

Starting in 2014, the company built almost 30 schools, offered numerous scholarships, and trained farmers to be very efficient through The Vita Coco Project. This allowed Vita Coco to become a benefit corporation.[4] In 2017, PepsiCo attempted to buy All Market Inc., the owner of Vita Coco, but did not meet the price All Market sought, which was at least $1 billion. Previously, Reignwood Group, the owner of Red Bull China, bought a 25% stake in All Market in 2014.[5][10]

The packaging and logo became more simplified in 2019, to show the growth of the brand since it had started.[11][12] The company got an over 100% boost in sales during the COVID-19 pandemic. In 2021, it had a 46% market share. Vita Coco also went public in 2021, debuting on the Nasdaq as COCO.[4]

Products

Coconuts

Vita Coco's coconut water is mainly sourced from Asia, with two-thirds coming from the continent and the other third being from Latin America.[4]

The original coconut water also comes in Pineapple and Peach & Mango flavors.

There are six variations of coconut water, not including flavors:[13][4]

  • Pressed, which has more coconut flavor
  • Coconut Juice, which comes in a can and contains the pulp
  • Milk, which is coconut milk, has no dairy
    • Comes in Original and Vanilla flavors
    • Barista variety is creamy and is meant to be added to coffee
  • Farmers Organic, which uses only organic coconuts
  • Boosted, which is caffeinated
  • Super Sparkling, which is carbonated

The company also sells a drink mix which is designed to stimulate hydration, containing antioxidants, vitamins, and electrolytes. It comes in Watermelon, Orange, Lemon Lime, and Coconut flavors.[13]

Other products

In addition to the coconut water which the brand is known for, the company has other side products such as Runa, a sports drink mixed with Ilex guayusa, a caffeinated holly tree, which it acquired in 2018, Ever & Ever, aluminum-canned water, and PWR LIFT, water infused with protein, which were founded in 2019 and 2021, respectively.[4]

Philanthropy

Vita Coco donated $1 million to No Kid Hungry and Feeding America during the COVID-19 pandemic, as they had a surplus of money from the jump in sales.[4]

Advertising

Celebrity endorsements

Vita Coco has had many celebrities endorse its product, including Madonna, Anthony Kiedis, Rihanna,[14] Alex Rodriguez,[15] Maroon 5,[16] and Anna DePalma.

Controversies

In 2012, Vita Coco was taken to court due to false advertising, as customers complained the health advantages and nutritional content were falsified and exaggerated. The plaintiff's complaint stated that the coconut water had "15 times the electrolytes found in sports drinks." It was alleged that the drink was not as hydrating as less expensive sports drinks and contained not as many electrolytes, magnesium, and sodium as what was advertised. Vita Coco denied any fault and entered the case to try to close it quickly and cheaply. The lawsuit ended up being settled for $10 million.[17]

References
  1. "The Vita Coco Company Revenue 2019-2023". Stock Analysis. Retrieved 2023-08-03.
  2. Jarvis, Rebecca; Dunn, Taylor (2016-02-17). "Meet the Company Behind the Coconut Water Craze". ABC News. Retrieved 2023-08-02.
  3. "Vita Coco leads with coconut-based beverages". Tetra Pak. Retrieved 2023-08-02.
  4. "AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT". U.S. Securities and Exchange Commission. Retrieved 2023-08-02.
  5. Hirsch, Lauren; Roumeliotis, Greg (2017-05-26). "PepsiCo in bid to acquire Vita Coco owner: sources". Reuters. Retrieved 2023-08-02.
  6. "The Vita Coco Company Announces Leadership Title Changes". GlobeNewswire. 2022-05-02. Retrieved 2023-08-02.
  7. Doering, Christopher (2021-08-26). "From its birth in a bar to an IPO, Vita Coco sets its sights next on dominating healthy beverages". Food Dive. Retrieved 2023-08-02.
  8. Groth, Aimee; Goldschein, Eric (2011-09-22). "The Amazing Story Of How Coconut Water Took Over The Beverage Industry". Business Insider. Retrieved 2023-08-02.
  9. "Vita Coco: Michael Kirban". National Public Radio. 2020-08-03. Retrieved 2023-08-02.
  10. Meyer, Zlati (2017-05-28). "Pepsico eyeing coconut water company: Report". USA Today. Retrieved 2023-08-02.
  11. Shapkin, Alexander (2019-11-18). "Vita Coco has changed its logo and packaging". 1000 Logos. Retrieved 2023-08-02.
  12. "Livin' la Vita Coco". Under Consideration. Retrieved 2023-08-02.
  13. "Official website". Retrieved 2023-08-02.
  14. O'Reilly, Lara (2011-05-11). "Vita Coco adds Rihanna to celebrity endorsement umbrella". Marketing Week. Retrieved 2023-08-02.
  15. Winfrey, Graham. "Vita Coco Won the Coconut Water Wars, but an Old Rival Is Planning a New Battle". Inc. Retrieved 2023-08-02.
  16. "Vita Coco® Joins Maroon 5 on North American Tour". Business Wire. 2015-02-16. Retrieved 2023-08-02.
  17. "Vita Coco coconut water settles class action lawsuit". Lexology. 2012-05-17. Retrieved 2023-08-02.

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