Vita Coco (NASDAQ:COCO) used its inaugural appearance on the Consumer Analyst Group of New York (CAGNY) stage to outline its long-term growth ambitions in coconut water, highlight what executives described as an advantaged global supply chain, and provide a financial update and outlook that includes expectations for improved margins as tariff impacts subside.
Founding story and category vision
Co-Founder and Executive Chairman Mike Kirban recounted the company’s origins in the early 2000s after discovering packaged coconut water’s popularity in Brazil. Kirban described coconut water as a globally consumed product across tropical regions—including India, Indonesia, Latin America, Southeast Asia, and parts of Africa—and said Vita Coco’s early task in the U.S. was “building a category from scratch” by educating consumers on what coconut water is and when to drink it.
Kirban also highlighted the company’s community and sustainability efforts, describing the “Vita Coco Project” as work that partners with local organizations, shares best practices with farmers, and helps build infrastructure and schools in farming communities. He framed the initiative as evidence that “doing good can be synonymous with making profit.”
Market leadership and retail execution
CEO Martin Roper, who joined Vita Coco in 2019 after a career at Boston Beer, described the company as a public benefit corporation and B Corp certified. Roper said Vita Coco is a category leader in its developed markets, with significant share advantages versus the next-largest competitor.
- United States: 42% share; Roper said the category is growing 22%.
- United Kingdom: 80% share; he said growth is currently faster than in the U.S., despite lower household penetration.
- Germany: 40% share after having “no share about three years ago”; he said the market is growing 126% and the brand is growing 200%.
Roper argued the category remains “young” from a household penetration standpoint, noting the U.S. is about half the household penetration of cranberry juice and roughly a third of orange juice. He said U.S. growth has been driven by increases in both household penetration and velocity over the past five to six years, which he called unusual in consumer goods. Roper said it is “feasible” for the U.S. Americas business to double over the next five to seven years.
On distribution, Roper highlighted a recent development at Walmart: in November, the retailer reset coconut water’s placement within its juice aisle and increased space and inventory holding capacity. Roper said the change is adding around 6% to Vita Coco’s scan data as Walmart gains share in coconut water, and he suggested other retailers may follow Walmart’s lead in future shelf resets.
Roper also pointed to innovation as a driver of trial and category interest, referencing additions such as flavors, multiple pack sizes, a juice product in cans, a coconut milk product, and an “indulgent coconut milk-based” treats product.
Supply chain as a “moat”
Chief Operating Officer Jonathan Burth said Vita Coco built its supply chain over roughly two decades, describing coconut water as a “fairly delicate” liquid that must be processed quickly to become shelf-stable, with milk as a rough comparison. He said the company sources coconuts from “thousands of small family farms across the tropics” and is on track to crack about 1.5 billion coconuts in the year—more than four million per day.
Burth described a strategy centered on partnering with large coconut processors already producing other coconut products (like coconut milk and desiccated coconut), where coconut water had effectively been treated as waste due to spoilage challenges. He said Vita Coco’s model involves:
- Identifying large-scale coconut processors in coconut-growing regions
- Sharing know-how and best practices to meet Vita Coco’s quality standards
- Securing long-term agreements—sometimes multi-decade and sometimes exclusive—in return
Burth said the approach allows Vita Coco to lock in long-term supply without owning plantations or factories, describing the company as “asset light” but “control heavy.” He said the supply network spans 16 factories in six countries and is typically run at about 80% capacity to maintain flexibility if disruptions occur in any one region. He added that the company employs about 70 supply chain professionals across five offices, with roughly half based in Singapore.
Financial performance, capital return, and 2026 outlook
CFO Corey Baker said the company delivered 18% overall net sales growth in 2025, led by the Vita Coco brand, which grew 26% globally. Baker said international business grew nearly 40% and accounted for 25% of the company’s overall growth. Despite absorbing $14 million of tariffs during the year, Baker said Vita Coco delivered 27% EPS growth and EBITDA “just under $100 million.”
Baker also provided longer-term context since the company’s IPO in 2021, saying Vita Coco delivered net sales growth at a 13% CAGR and grew adjusted EBITDA at twice the pace of sales, resulting in EBITDA “2.5x” the 2021 level.
On the balance sheet, Baker said Vita Coco ended the year with $197 million in cash, no debt, and under $10 million in property, plant, and equipment. He said inventory stands at about $100 million, reflecting the working capital required to support coconut sourcing from farm to shelf. Baker said the company generated return on invested capital of approximately 50% over the last year.
Baker said Vita Coco has started returning cash to shareholders through repurchases, with a $65 million authorization and $24 million executed. He said the company will continue to evaluate repurchases quarterly in coordination with a subset of the board, while also remaining open to M&A opportunities that can create long-term shareholder value.
Looking ahead, Baker said the company expects another record year in 2026 and guided to low- to mid-teens net sales growth. He said that as tariff impacts have “subsided and went away” for the company, Vita Coco expects gross margin to return to a high-30% range, approaching 40%, alongside about a point of SG&A leverage. At the midpoint, Baker guided to EBITDA of around $125 million.
Key assumptions in the outlook included the U.S. category continuing to grow at mid-teens rates, the Vita Coco brand growing low-to-mid-teens, low single-digit pricing in the U.S., and a rebound in private label. Baker said private label was a headwind in 2025 but is expected to become a tailwind in 2026, with projected U.S. private label growth of 20% to 25%.
About Vita Coco (NASDAQ:COCO)
Vita Coco, Inc (NASDAQ: COCO) is a global beverage company specializing in coconut-based products. Founded in 2004 by Michael Kirban and Ira Liran, the company pioneered the introduction of refrigerated coconut water to U.S. consumers. Headquartered in New York City, Vita Coco sources coconuts from growers in tropical regions such as the Philippines, Indonesia and Brazil, partnering with local farmers to promote sustainable agriculture and community development.
The company’s flagship offering, Vita Coco Original Coconut Water, is available in multiple pack sizes and a variety of flavors.
