The Vita Coco Company, Inc.

What they do

Vita Coco sells packaged coconut water, coconut oil, juice and milk under its Vita Coco brand, plus PWR LIFT protein-infused fitness drinks, and supplies Private Label coconut water and coconut oil to major retailers. The company pioneered packaged coconut water in 2004 and describes itself as one of the largest brands globally in the coconut and other plant waters category and a large Private Label supplier. It sources from a network of approximately 16 factories across six countries (about 20 factories and co-packers as of June 30, 2026) that it does not own, an asset-light model, and distributes in over 35 countries with primary markets in North America, the U.K. and Germany. Products sell through club, food, drug, mass, convenience, e-commerce and on-premise channels.

Revenue drivers

• Vita Coco Coconut Water — The core brand and the company's dominant product: coconut water accounted for 96% of revenue for the year ended December 31, 2025. Q2 2026 Vita Coco Coconut Water net sales grew 21% year over year on 15% case-equivalent volume growth.
• Private Label — Supplied to key retailers in coconut water and coconut oil, primarily in North America and Europe. Private Label case-equivalent volume grew 78% in Q2 2026, which the company attributed mainly to distribution gains.
• Adjacent branded products — Coconut oil, juice and milk offerings under the Vita Coco brand, plus PWR LIFT protein-infused fitness drinks, extend the portfolio beyond coconut water. Discontinued lines include Runa (ceased selling December 2023, assets impaired September 2025) and Ever & Ever (ceased producing in 2024).

Recent performance

Q2 2026 net sales were $216 million, up $47 million or 28% from $169 million a year earlier, with year-to-date net sales of $396 million, up 32%. Gross margin was 49% in the quarter versus 36%, including a 700 basis point benefit from tariff refunds, and 45% year-to-date versus 36% (300 basis point tariff refund benefit). Net income was $49 million in the quarter versus $23 million, and $80 million year-to-date versus $42 million; diluted EPS was $0.82 versus $0.38. Non-GAAP Adjusted EBITDA was $67 million in the quarter versus $29 million, and $106 million year-to-date versus $52 million. SG&A rose to $42 million from $36 million, primarily on higher people-related and incentive compensation costs.

Strategy

Management is investing behind consumer education for coconut water, emphasizing that it has 3.5 times the electrolytes of the leading sports drink, and plans to increase sales and marketing spending in the second half of 2026 to sustain momentum into 2027. Growth is being pursued through both branded retail expansion in major markets and private label distribution gains. On July 22, 2026 the company acquired Copra Inc., a super-premium Thai Nam Hom coconut water producer that owns and operates a factory in Thailand, which management says enhances supply chain capabilities and supports long-term growth. The company also continues to operate an asset-light sourcing model through third-party factories and co-packers, with the Copra factory now owned.

Risks

• Coconut water concentration — Coconut water was 96% of revenue in 2025, so any decline in demand for coconut water generally or for Vita Coco specifically would hit results directly.
• Customer concentration — The company depends on a few large retail customers and a significant Private Label business with large retailers, and retail ownership is itself concentrated in its key markets.
• Tariff and trade exposure — Imports are sourced primarily from the Philippines and Brazil; 2025 tariffs raised costs, exemptions granted in November 2025 reduced exposure, and the administration has said it intends to impose additional tariffs under other authorities.
• Competition from larger beverage companies — Vita Coco competes with The Coca-Cola Company, PepsiCo and Nestle S.A., which may have substantially greater financial resources and stronger brand recognition, as well as with other coconut water brands including Goya, Harmless Harvest, Zico and C20.

Outlook

The company raised fiscal year 2026 guidance for net sales to between $790 million and $805 million and Adjusted EBITDA to between $154 million and $161 million. Management cited expected continued brand strength in major markets plus strong second-half private label shipment trends and slight underlying gross margin improvement versus prior guidance. It still expects current cost pressures to temporarily reduce gross margin for the balance of the year, partly offset by increased second-half sales and marketing investment.