But unfortunately for Vita Coco, after coconut water sales peaked to a record high in 2016, the craze has steadily waned. Other “healthy” and “natural” beverages began to flood the market, and sparkling water brands like La Croix seemed to supplant coconut water in the cultural zeitgeist. U.S. coconut water sales fell 16% by 2020, with the decline accelerating each year, according to data from research firm Euromonitor as cited by Bloomberg. In October 2020, Vita Coco’s competitor Zico was discontinued by its owner Coca-Cola, which ultimately sold the “underperforming” brand back to its founder a few months later.
Although it’s not like coconut water is dead: In fact, it enjoyed a revival during the COVID-19 pandemic as consumers stocked up on bottled, better-for-you beverages. In the 12 months ending June 30, 2021, Vita Coco’s net sales swelled 17% year-over-year. And cofounder and CEO Mike Kirban is optimistic, telling Fast Company that the culling of the field was actually good news: “We have a 46% market share in the U.S. coconut water market, which is bigger than the next 10 brands combined.”
Following the IPO, he only expects revenue to increase, given the trends he’s seeing. “Consumers are becoming more and more focused on the ingredients they put in their bodies,” he says. “The $13 billion natural segment [within the U.S. beverage market] is growing at twice the pace of conventional brands, and Vita Coco is one of the original brands in the natural category.”
Source : https://www.fastcompany.com/90688870/vita-coco-stock-price-ipo264