Michael Kirban, co -founder and executive president of Vita Coco.
Vita coco
When it comes to selling coconut water in obsessive health, New York’s Vita Coco has served a main class, even commenting on giant opponents such as Coke and Pepsi. His next test will withstand Trump’s invoices.
WHat do when 96% Your revenue comes from coconut water and 100% of your offer comes from tropical countries targeted by Donald Trump with high invoices?
This is precisely the situation facing one of the hottest nation’s small capital companies today, $ 516 million (Revs) Vita-Coco in New York, the leading coconut water manufacturer. Its largest source of coconuts has so far been Brazil, a country now at the intersections of a 50%proposed invoice, with the courtesy of Trump’s administration. The six other coconut sources are not much better: Philippines (invoice: 19%), Malaysia (25%), Vietnam (32%), Indonesia (32%) Thailand (36%) and Sri Lanka (46%).
Still, you would not know that Vita Coco faced a Trump invoice, given the company’s tone – or its stock performance. Shares have increased almost 32% in the last 12 months, surpassing many better known consumer names. Even with the stock down about 5% on a yearly basis, as wider market concentrations, Wall Street is removed from the inevitable pressure of Vita Coco.
“Brazil is really one did not put us for us,” insists co -founder and executive President Michael Kirban. “We started working for the redistribution of Brazil’s supply, which has historically been going to the United States, to supply Europe and Canada several weeks ago.” The main source of supply for Europe, meanwhile – the Philippines, Sri Lanka and Malaysia – will now shift to the US “this is something we can pull the trigger very quickly”, Kirban reasons, seemingly indifferent to high invoices.
Continues: “By reducing ocean fare and in pricing [increases] We got earlier this year to mitigate the initial 10% basic invoices, we believe we are in a good position. “Co -founder Kirban says he does not expect to go further prices in the coming months, but this may be pious if Trump does not get away from his hard invoices in the tropical countries.
Here’s what Vita Coco Martin Roper’s chief executive said in the Q2 profit call held a few weeks ago: “ about 7% increase to American food retailers according to Circana over the quarter. “However, the increase in May prices does not include another recent increase in prices applied in the current quarter, which Vita Coco’s management refuses to provide forbes details.
For the time being, Wall Street puts her faith in Vita Coco Management.
Partners with seven of the world’s largest coconut processors, Vita Coco currently controls about 40% of the US Coconut-Nero market, far ahead of smaller competitors such as Goya and harmful harvest. “Coca-Cola has tried to enter this market, buying Zico and Pepsi also failed,” said Larry Carlin, a stock analyst at $ 8 billion (assets) Contestoga Capital Advisors, who hope that the strong position of Vita Coco will give him more. invoices. “They have developed a chain of supply with significant obstacles to the entrance,” Carlin adds.
tby two friends In 2003, after a fortune at the Manhattan Bar Room Encounter, Vita Coco met with early success in its first decade, thanks to celebrities such as Madonna, Demi Moore and Matthew McConnaghy. However, about a decade on the journey of the increasing pains hit – these margins, distribution hiccups and a rocky 2021 iPo kept many institutions away.
But over the last two years the company has executed a disciplined recovery, tightening its supply chain after Covid’s pandemic. It has also expanded its portfolio of offers to a pwr lifting that has been infused with protein, aluminum and always water, and more recently, the Vita Coco coconut milk line. Until Trump’s invoices attack, Vita-Coco was the envy of Russell 2000, which appears close to the top of the best small Forbes companies ranked in 2024.
Concerning the call of the second quarter of the company, which took place on July 30, CFO Corey Baker noted that Vita Coco is following an official Americans’ exemption request. If this is not granted, the administration essentially told shareholders to support themselves: “If [the 50% Brazilian tariff is] It was finally founded, it would eventually need to go through price increases, “says Baker.
In Wall Street, six of the ten analysts covering the Vita Coco Rate, a “buy”, while the other four give a “Hold” rating, often interpreted as “sale” by investors. Short sellers have begun to rotate.
An exhibition of March 23, 2025 by a short seller research in the United Kingdom, accused Vita Coco of numerous underlying business problems, including failed diversification efforts, supply chain fouls and millions of managing director and sales. Ningi’s main argument was that the company was an unsustainable growth story: “Vita Coco is nothing more than a one-triklion pony” and a “business basket case,” he wrote. The most aggressive claims of the report were that Vita Coco had lost its major contract with Costco due to the mismanagement of the supply chain, which would lead to a significant wound of revenue.
While Vita Coco publicly reversed the report that it contained “inaccuracies and incorrect classifications”, later public statements and financial results support Ningi’s claims on the Lost Costco Convention. The company’s 2025 profits report confirmed a significant 36.5% reduction in private label sales. In addition, Costco seems to have stopped selling Vita Coco and instead stores its own coconut water under Kirkland Signature’s internal private label brand.
Today, a 12-pack of Costco Kirkland Coconut Water itself sells for $ 12.99 versus $ 19.59 for a 12 Vita Coco package in Target. Vita Coco also publicly acknowledged that stock restrictions in 2024 led to “unacceptable levels of private label services”. Despite these issues, Vita Coco Bulls argue that the company’s main company Coconut Water is strong.
Always optimistic, Kirban is unfair. “Sales continue to perform really fine. So I think consumers are willing to pay,” says Kirban, referring to prices -related prices. “This is a product coming from a tree. It is not created in a lab and there are three and a half times the electrolytes of the top sports drink.”
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