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Vita Coco returns to its fitness roots as more consumers choose coconut water as a healthy alternative to sports drinks.
This beverage brand was founded by Mike Kirban and his friend Ira Liran after they saw Brazilians drinking coconut water on the beach and at the gym. They recognized the untapped market in the United States and created the Vita Coco brand in 2004.
At first, Vita Coco targeted hot yoga classes and achieved success by forming unconventional partnerships with athletes such as baseball infielder Alex Rodriguez and football running back Marshawn Lynch. But over time, Vita Coco’s early interest in American sports gave way to other, more promising opportunities.
The company found that consumers were using coconut water on more occasions, such as to cure hangovers or as an additional ingredient in cocktails, smoothies and protein drinks. With a limited marketing budget, executives prioritized getting the fledgling brand into homes by educating consumers about the different ways they could use Vita Coco.
Now, almost 20 years later, Vita Coco is focusing its efforts on sports and fitness even further. The decision comes as coconut water gains market share from brands including Coca-Cola’s BodyArmor and Pepsico’s Gatorade.
Until recently, sports drink customers accounted for a third of growth, but the pace has “accelerated,” according to Kirban.
“We’re really going back to where we started and getting back to the main message,” he said. “We’re in a position to do that pretty hard.”
The multibillion-dollar coconut water space as a whole has matured, with household penetration at about 25%, a sharp increase from a decade ago, Kirban added. Vita Coco has contributed significantly to this expansion and is better positioned to explore additional forms of growth.
Today, Vita Coco controls about half of the U.S. coconut water market, and an even larger share when you add its private label business.
Sales at the New York-based company include: It recorded an average annual growth rate of 12.5% over the past five years. Last year’s total was $516 million.. Vita Coco is expanding market penetration in the U.S., innovating and international expansion.
Promoting the beverage as a source of hydration for sports and fitness will not only increase availability for Vita Coco, but will also help deepen the company’s presence with younger consumers. Coconut water has seen increasing demand from Generation Z and Millennials, who are heavy consumers of sports drinks.
Coconut water has attracted more shoppers because of its nutritional, vitamin and electrolyte content, as well as the absence of artificial colors and flavors.
As part of a new push for sports, Vita Coco recently partnered with athletes. Promoting your brand in a way that helps their performance, whether it be professional soccer, tennis, soccer, or golf. Besides, it is Rush Soccer Hydration SponsorThe world’s largest youth soccer league.
“We can use sports nutrition and sports hydration to attract younger consumers,” Kirban said, noting that people in college can continue to drink Vita Coco as adults. “This is how they become true household essentials that become part of people’s lives over time and for generations.”
