What changed in this filing

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Item 1. Business

2025-02-26 compared with 2024-02-29 · 68 added, 57 removed, 121 unchanged (51% of the section changed)

The Vita Coco Company is a leading platform for brands in the functional beverage category.

We pioneered packaged coconut water in 2004 and have extended our business into other categories.

The Vita Coco Company pioneered packaged coconut water in 2004 and we have extended our business into other categories.

Our mission is to deliver great tasting, natural and nutritious products that we believe are better for consumers and better for the world.

We are one of the largest brands globally in the coconut and other plant waters category, and a large supplier of private label coconut water.

Our branded portfolio is led by our Vita Coco brand, which is the leader in the coconut water category in the United States, and also includes coconut oil, juice, and milk offerings.

Our branded portfolio is led by our Vita Coco brand, which is the leader in the coconut water category in the U.S., and also includes coconut oil, juice, and milk offerings.

Our other brands include Ever & Ever , a sustainably packaged water, and PWR LIFT , a protein-infused fitness drink.

We also offered Runa , a plant-based energy drink inspired by the guayusa plant native to Ecuador, which we ceased selling in December 2023.

We previously offered Runa , a plant-based energy drink inspired by the guayusa plant native to Ecuador, which we ceased selling in December 2023.

We supply private label products to key retailers in both the coconut water and coconut oil categories.

Additionally, we generate revenue from bulk product sales to beverage and food companies.

We source our coconut water from a diversified global network of 14 factories across six countries supported by thousands of coconut farmers.

As we do not own any of these factories, our supply chain is a fixed asset-lite model designed to better react to changes in the market or consumer preferences.

We also work with co-packers in America and Europe to support local packaging and repacking of our products and to better service our customers’ needs.

Vita Coco is available in over 30 countries, with our primary markets in North America, the United Kingdom, and China.

We source our coconut water from a diversified global network of 17 factories across seven countries supported by thousands of coconut farmers.

As we do not own any of these factories, our supply chain is a fixed asset-light model designed to better react to changes in the market or consumer preferences.

We also work with co-packers across four countries to support local packaging and repacking of our products and to better service our customers’ needs.

Vita Coco is available in over 35 countries, with our primary markets in North America, the United Kingdom (the "U.K."), and Germany.

Our primary markets for private label are North America and Europe.

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Our primary brand, Vita Coco Coconut Water, competes in the global coconut and plant waters category .

Our Vita Coco coconut milk product is a plant-based dairy alternative and our PWR LIFT brand competes in the enhanced isotonic category.

Our Vita Coco coconut milk product, which includes our recently launched Vita Coco Treats, is a plant-based dairy alternative and our PWR LIFT brand competes in the enhanced isotonic category.

We also develop and sell other brands in the beverage category, and occasionally in other categories, as we test our ideas for expanding our product portfolio.

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Competition is generally based on brand recognition, taste, quality, price, availability, selection and convenience, as well as factors related to corporate responsibility and sustainability.

Additionally, we compete within the broad non-alcoholic beverage category, and our flagship brand, Vita Coco , is the market leader in the coconut water category in the United States.

Additionally, we compete within the broad non-alcoholic beverage category, and our flagship brand, Vita Coco , is the market leader in the coconut water category in the U.S.

Our competitors in the beverage market include large beverage companies such as The Coca-Cola Company, PepsiCo, Inc.

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that may have substantially greater financial resources and stronger brand recognition than we have.

We also compete with other leading functional beverages including Goya, Harmless Harvest, Foco, BodyArmor, Monster Energy, Red Bull, Bang, Ocean Spray and Bai, as well as a

range of emerging brands and retailers’ own private label beverage brands.

We also compete with other leading functional beverages including Goya, Harmless Harvest, Foco, BodyArmor, Monster Energy, Red Bull, Bang, Ocean Spray and Bai, as well as a range of

emerging brands and retailers’ own private label beverage brands.

Our competition and competitors vary by market due to regional brands and taste preferences.

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Business Operations

As of December 31, 2023, we operate in two business segments:

(i) the Americas segment, comprised of our operations primarily in the United States and Canada and (ii) the International segment, comprised of operations primarily in Europe, the Middle East, Africa and the Asia Pacific regions.

While ov er 92% of our business is based on sales of coconut water, we have used our access to market to add other beverage brands with a long-term view to building a diversified beverage platform of compatible brands.

As of December 31, 2024, we operated in two business segments:

(i) the Americas segment, comprised of our operations primarily in the U.S.

and (ii) the International segment, comprised of operations primarily in Europe, the Middle East, Africa and the Asia Pacific regions.

While 96% of our business is based on sales of coconut water, we have used our access to market to add other beverage brands, and production innovations such as Vita Coco Treats, with a long-term view to building a diversified beverage platform of compatible brands.

With the launch of the Vita Coco brand in New York City in 2004, we established coconut water as a premium lifestyle drink in America.

Vita Coco is the coconut water category leader with greater than 50% market share in the United States according to Circana US for the 52 weeks ending December 31, 2023, which over indexes to younger households and to more multicultural shoppers.

Vita Coco is the coconut water category leader with greater than 40% market share in the U.S.

according to Circana US for the 52 weeks ended December 29, 2024, which over indexes to younger households and to more multicultural shoppers.

We offer Vita Coco coconut water as an alternative to sugar-packed sports drinks and other less healthy alternatives.

Vita Coco has evolved from a primarily pure coconut water brand to a full portfolio of coconut-based products.

The portfolio now includes multiple offerings in the coconut water category with Vita Coco Pressed, Vita Coco Coconut Juice, and Farmers Organic, with offerings in adjacent plant-based categories such as Vita Coco Coconut MLK, Vita Coco Barista and Vita Coco Coconut Oil.

Our key strategies for growth for Vita Coco coconut water include:

1) offering more multipacks in coconut water to increase consumption with core consumers, 2) increasing distribution of other product offerings such as Farmers Organic and Vita Coco Coconut Juice, 3) expanding the number of households that purchase our products, and 4) growing opportunities for new usage generally.

Internationally, our business is anchored by Vita Coco ’s presence in the United Kingdom, where it is the chilled coconut water category leader with 89% market share, according to Circana UK, for the 52 weeks ended December 30, 2023.

Our United Kingdom commercial team and our supply chain based in Asia have allowed us to sell into other European and Asian countries.

1) expanding the coconut water category through consumer education of the numerous usage occasions for coconut water, 2) increasing distribution of other product offerings such as Farmers Organic, Vita Coco Coconut Juice, and launching new product innovations, such as Vita Coco Treats, 3) expanding the number of households that purchase our products, 4) growing opportunities for new usage generally, and 5) developing and expanding our markets globally.

Internationally, our business is anchored by Vita Coco ’s presence in the U.K., where it is the coconut water category leader with 82% market share, according to Circana UK, for the 52 weeks ended December 28, 2024.

commercial team and our supply chain based in Asia have allowed us to sell into other European and Asian countries.

Vita Coco coconut water has a presence in key markets such as China, France, Germany, the Middle East, the Benelux region, Spain, the Nordic Region and Africa.

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We also supply retailers with private label coconut oil.

Launched in 2019, Ever & Ever is a purified water brand packaged solely in aluminum bottles.

Given consumer concerns with the disposal or recyclability of plastic water bottles, we created Ever & Ever to respond to the consumer need for a sustainably packaged water product in aluminum bottles with potential infinite recyclability.

Ever & Ever was launched with a focus on the food service and office channels.

In 2021, we launched PWR LIFT, a beverage targeted at post-workout and recovery occasions with added nutritional benefits.

PWR LIFT is a protein-infused sports drink with electrolytes, BCAAs, and zero sugar, designed to provide fitness-minded consumers with protein in a hydrating beverage.

In 2022 and 2023, we tested PWR LIFT in select markets including Arizona, North Carolina, South Carolina and Texas.

During that time, PWR LIFT became the official sponsor of HYROX, a rapidly-growing competition known as the "World Series of Racing." In early 2024, PWR LIFT will launch in New York City metro area.

The brand targets fitness enthusiasts and consumers seeking healthier beverage options, and we plan to grow the brand by focusing on premium retail execution, brand sponsorships, influencer partnerships and social media advertising.

Runa is a plant-based, natural offering for consumers in the energy drink market.

A key ingredient in Runa is guayusa, an Amazonian jungle plant.

In 2022 and 2023, we tested PWR LIFT in Arizona and Texas, while also establishing the brand within fast-growing fitness spaces like HYROX and Spartan.

In early 2024, PWR LIFT expanded testing to the New York City metro area.

While PWR LIFT has proved to be attractive in online sales channels, we are still forming a successful long-term approach to retail channels.

As the protein drink category continues to grow, PWR LIFT will focus growing the consumer base and appeal of the brand through communicating lifestyle occasions and by messaging the broad variety of benefits that protein and hydration have to offer health-seeking consumers.

In 2025, we will continue online sales as we redesign PWR LIFT 's approach to succeeding in the protein drink category.

Launched in 2019, Ever & Ever is a purified water brand packaged solely in aluminum bottles.

Given consumer concerns with the disposal or recyclability of plastic water bottles, we created Ever & Ever to respond to the consumer

need for a sustainably packaged water product in aluminum bottles with potential infinite recyclability.

Ever & Ever was launched with a focus on the food service and office channels.

We paused production of Ever & Ever in 2024 and are evaluating whether to discontinue the product, as it does not meaningfully contribute to our business.

Runa was a guayusa plant-based, natural offering for consumers in the energy drink market.

As of December 2023, we ceased offering this brand.

We engage contract manufacturers, co-packers and third-party logistics providers to manufacture and distribute our products.

Our fixed asset-lite model enhances production flexibility and capacity, and enables us to focus on our core in-house capabilities which include supplier management, logistics, sales and marketing, brand management and customer service.

Our well-diversified global manufacturing network spans across 14 coconut water factories in six countries that are operated by our manufacturing partners and five co-packing facilities for products not packaged near source.

Our fixed asset-light model enhances production flexibility and capacity, and enables us to focus on our core in-house capabilities which include supplier management, logistics, sales and marketing, brand management and customer service.

Our well-diversified global manufacturing network spans across 17 coconut water factories in seven countries that are operated by our manufacturing partners and six co-packing facilities in four countries for products not packaged near source.

Our network provides us with significant production capacity and capabilities, and an ability to re-allocate coconut water sourcing in the event of supply chain issues, weather, logistics or other macroeconomic impacts.

Coconut water needs to be transferred from the coconut into an aseptic package within hours of cutting a coconut from the tree.

Coconut water needs to be transferred from the coconut into an aseptic package or converted to concentrate within hours of cutting a coconut from the tree.

Our supply chain partners are positioned as close to the coconut growing regions as possible to keep quality at the highest level.

Through our access and relationships with coconut processors and manufacturers in many countries, including the Philippines, Indonesia, Malaysia, Thailand, Sri Lanka, and Brazil, we have built up a unique body of knowledge and relationships that promote coconut water processing at scale, as well as gained access to farms across diversified geographies.

Through our access and relationships with coconut processors and manufacturers in many countries, including the Philippines, Indonesia, Malaysia, Thailand, Sri Lanka, Brazil, and Vietnam, we have built a unique body of knowledge and relationships that promote coconut water processing at scale, as well as gained access to farms across diversified geographies.

Our co-packing facilities, which primarily use concentrate, are located in Canada, Mexico, the U.S., and the U.K.

We also attempt to foster a thriving loyal farming community around our manufacturing partners through our work with charitable organizations to support agricultural education programs and investments in schooling.

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The majority of our products are produced and packaged with materials sourced from a single supplier, Tetra Pak, whether purchased by us or by our contract manufacturers on our behalf, which provides us efficiency in the packaging and exporting of our products, and furthers our commitment to responsible sourcing, packaging near source and sustainability.

Our production contracts are mostly denominated in United States dollars, with some limited contracts in local currencies such as the Brazilian real.

Our production contracts are mostly denominated in U.S.

dollars, with some limited contracts in local currencies such as the Brazilian real.

Distribution, Sales and Marketing

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Our European market is primarily retail and e-commerce operator direct sales, with some countries supported by distributor or importer type relationships.

In China, we sell to Reignwood Investment (China) Co., Ltd, which is our import and distributor partner for the territory, and, through its affiliates, was one of our significant shareholders prior to 2023.

In China, we sell through a joint venture with the Jebsen Group, Coco Ventures Limited, which provides for the development, marketing, distribution and branding of coconut water-based products under the Vita Coco brand in China.

Other countries are serviced through importers with limited retail direct relationships or in partnership with one of our manufacturing partners through licensing or other agreements.

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(i) DSD management, (ii) national account management (including club, mass food and convenience), and (iii) retail execution.

Our European sales team is aligned geographically and by major account or by import partner and is further supported by a small field execution and marketing team in the United Kingdom.

Our International sales teams are aligned geographically and by major account or by import partner, and is further supported by small field execution and marketing teams.

Private label accounts are handled by each geographic division in close cooperation with supply chain leadership.

Our sales and marketing function in China is handled by our importer.

Our Coco Ventures joint venture supports sales and marketing of our distributor in China.

We also employ a brand, marketing, e-commerce and insights team with strong creative, social and digital capabilities with a primary focus on the North American and European markets.

The primary goal of our marketing function is to educate consumers about the functional benefits of our products while inspiring consumers to fall in love

with our brands.

Since the early days, our brands have been sponsored by a roster of celebrity and athlete fans.

Today, we continue to leverage relationships with talent and influencers who are aligned with our values and are genuine fans of our brands.

Our marketing efforts are centered around educating consumers on the functional benefits of our products while fostering a deep emotional connection with our brands.

From the beginning, we have been supported by a diverse group of celebrity and athlete enthusiasts.

Today, we continue to collaborate with talent and influencers who we believe share our values and are authentic fans of our brands.

We execute across a broad marketing mix to bring our brand to life in creative and engaging ways, ensuring we connect with our audience in genuine and meaningful ways.

As is typical in the beverage industry, sales of our beverages are seasonal, with the highest sales volumes generally occurring in the second and third fiscal quarters during the warmer months of the year in our major markets.

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Our global innovation function sits in the marketing team to ensure alignment with current brand initiatives and sharing of consumer insights across teams and markets.

The innovation team works closely with our internal global research and development and technical teams that include employees in the United States, Europe and Singapore focused on supplier capability, quality improvements and new processes.

The innovation team works closely with our internal global research and development and technical teams that include employees in the U.S., Europe and Singapore focused on supplier capability, quality improvements and new processes.

We also have strong supplier relationships that give us access to a broad scope of ingredients, packaging offerings and technologies.

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We believe the protection of our trademarks, designs, copyrights, patents, domain names, trade dress and trade secrets are important to our success.

As of December 31, 2023, we had over 30 registered trademarks and over 10 pending trademark applications in the United States, as well as over 240 registered trademarks and over 10 pending trademark applications in other countries.

As of December 31, 2024, we had over 20 registered trademarks and over five pending trademark applications in the U.S., as well as over 230 registered trademarks and over 10 pending trademark applications in other countries.

Depending upon the jurisdiction, trademarks are valid as long as they are in use and/or their registrations are properly maintained.

We consider information related to formulas, processes, know-how and methods used in our production and manufacturing as proprietary and endeavor to maintain them as trade secrets.

We have in place reasonable measures to keep the above-mentioned items, as well as our business and marketing plans, customer lists and contracts reasonably protected.

We have reasonable measures in place to keep the above-mentioned items, as well as our business and marketing plans, customer lists and contracts reasonably protected.

Government Regulation

Our products are regulated in the United States as conventional foods.

We, along with our distributors and manufacturing and co-packing partners, are subject to extensive laws and regulations in the United States by federal, state and local government authorities including, among others, the U.S.

Our products are regulated in the U.S.

as conventional foods.

We, along with our distributors and manufacturing and co-packing partners, are subject to extensive laws and regulations in the U.S.

by federal, state and local government authorities including, among others, the U.S.

Federal Trade Commission ("FTC"), the U.S.

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Department of Agriculture, the U.S.

Environmental Protection Agency and the U.S.

Environmental Protection Agency ("EPA") and the U.S.

Occupational Safety and Health Administration and similar state and local agencies.

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and tariff regulations, duties, and tax requirements.

Products that do not comply with applicable governmental or third-party regulations and standards may be considered adulterated or misbranded and subject, but not limited to, warning or untitled letters, product withdrawals or recalls, product seizures, relabeling or repackaging, total or partial suspensions of manufacturing or distribution, import holds, injunctions, fines, civil penalties or criminal prosecution.

recalls, product seizures, relabeling or repackaging, total or partial suspensions of manufacturing or distribution, import holds, injunctions, fines, civil penalties or criminal prosecution.

In addition, some of our products are produced and marketed under contract as part of special certification programs such as organic, kosher or non-GMO, and must comply with the strict standards of federal, state and third-party certifying organizations.

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Through achieving Certified B Corporation status, The Vita Coco Company, Inc.

joined its subsidiary, All Market Europe Ltd., a United Kingdom company, which had previously achieved Certified B Corporation status.

joined its subsidiary, All Market Europe Ltd., a U.K.

company, which had previously achieved Certified B Corporation status.

We believe that we bring our products to market through a responsibly designed supply chain, and provide farmers and manufacturers the partnership, investment and training they need to not only reduce waste and environmental impact, but also bring income and opportunity to their local communities.

In 2014, we created the Vita Coco Project to support and empower our coconut farming communities by encouraging innovative farming practices, improving education resources, and scaling our business to promote economic prosperity.

With our “Give, Grow, Guide” philosophy, we seek to contribute to educational programs and facilities by supporting initiatives to build new classrooms and fund scholarships, with a goal to impact the lives of people in these communities.

In 2014, we created the Vita Coco Project to support and empower our coconut farming communities by encouraging innovative farming practices, improving educational resources, and scaling our business to promote economic prosperity.

With our impact driven philosophy, we seek to contribute to educational programs and facilities by supporting initiatives to build new classrooms and fund scholarships, with a goal to impact the lives of people in these communities.

Additionally, we attempt to partner with other third-party organizations that share and advance our ideals, including fair trade, accessible nutrition and wellness, and environmental responsibility.

We believe this purpose-driven approach has aided our growth as we believe it is strategically aligned with the beliefs of our global consumer base and has improved our supplier relationships.

To further support our public benefit purpose and "Give, Grow, Guide" philosophy, we formed the Vita Coco Community Foundation, a standalone nonprofit corporation in December 2023.

To further support our public benefit purpose and impact driven philosophy, we formed the Vita Coco Community Foundation, a standalone, 501(c)(3) nonprofit organization, in December 2023.

Annually, we publish an Impact Report describing the environmental and social impacts of our business.

As a public benefit corporation, we are required by Delaware law to provide a biennial statement on our promotion of the public benefits identified in our certificate of incorporation and of the best interests of those materially affected by the corporation's conduct.

Our biennial public benefit corporation statement was included in our Impact Report issued in early 2023.

We intend to use the Impact Report to be issued later this year as such biennial statement.

Human Capital

As of December 31, 2024, we had 319 full-time employees.

Of these employees, 220 were employed in the United States.

Of these employees, 234 were employed in the U.S.

None of these employees are represented by labor unions or covered by collective bargaining agreements.

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Our people are at the heart of our business.

Our Board of Directors provides oversight of the policies and procedures relating to talent, leadership, culture and compensation plans for our Executive Chairman and Chief Executive Officer.

Our Board of Directors (the "Board") provides oversight of the policies and procedures relating to talent, leadership, culture and compensation plans for our Executive Chairman and Chief Executive Officer.

The Compensation Committee evaluates and approves the compensation plans for our executive officers.

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Our Diversity and Inclusivity Committee works to celebrate all our employees, educate and recommend improvements to our processes to enhance our organization and our culture.

As of December 31, 2023, approximately 47% of our employees identified as female, 49% identified as male, and 4% did not disclose their gender identity.

In addition, at the end of 2023, 38% of our employees identified as Black, Indigenous and/or People of Color or two or more races, 48% identified as white, and 13% did not disclose their race.

As of December 31, 2024, approximately 50% of our employees in our global workforce identified as female, 50% identified as male, and 0% did not disclose their gender identity.

In addition, at the end of 2024, approximately 30% of our employees identified as Black, Indigenous and/or People of Color or two or more races, 40%

identified as white, and 30% did not disclose their race.

We strive to reflect the diverse identities and cultures of our consumers.

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was incorporated in Delaware as a corporation in January 2007 and as a public benefit corporation in April 2021.

We completed an initial public offering of our common stock in October 2021.

We completed an IPO of our common stock in October 2021.

Our website is www.thevitacococompany.com.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business