Coconut water makes a surprise comeback bid
In 2013, a roadside stand in Rio de Janeiro sold coconut water straight from a freshly cut green coconut. The drink tasted subtly sweet and contained natural electrolytes, making it popular among travelers. That year, U.S. sales reached $600 million as brands like Zico and Vita Coco filled grocery shelves nationwide.
Demand later weakened. By 2016, sales had peaked and started falling, eventually dropping 16%. Specialty waters, seltzers, kombuchas, and other soft-drink alternatives have proliferated. Some criticized processed coconut water’s health claims, though fresh versions retained their reputation. Coca-Cola, which acquired Zico in 2013, discontinued the brand in 2023. PepsiCo followed by dropping ONE, a label it had bought in 2017.
Founders refuse to let the market fade
Mark Rampolla, Zico’s founder, repurchased the brand from Coca-Cola earlier this year. He relaunched it as Zico Rising and began restocking shelves, including at Walmart. The company’s Twitter profile now reads, “We’re baaaack! With nuttin’ but love.”
Vita Coco, which holds 46% of the U.S. coconut water market, filed for an initial public offering. The deal could raise $224 million and value the business at up to $1.1 billion. If approved, shares will trade on the Nasdaq under the ticker COCO.
Vita Coco used social media to rebuild interest. Its Twitter bio jokes, “I know not everyone likes coconut water, but I’m just hoping you’ll like me for my personality.” On the first day of fall, the brand tweeted, “Since it is the First Day of Fall, we will now be switching from Coconuts to Pumpkins. What are your thoughts on Pumpkin Water?”—adding, “For legal reasons, this is a joke.”
The founders of both brands have deep personal ties to the product. Rampolla first tried coconut water while serving in the Peace Corps in Central America. He found it more effective than sports drinks for hydration. Michael Kirban and Ira Liran, who started Vita Coco, got the idea after meeting two Brazilian women in a Manhattan bar. The women praised coconut water, and Liran later married one of them. Early backers included celebrities like Madonna, Demi Moore, and Rihanna.
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The market shift didn’t erase the founders’ commitment. Their attachment to the drink goes beyond trends. Whether that will revive sales is uncertain, but their efforts suggest a long-term strategy.
After years of decline, the category remains significant. For founders who built careers around coconut water, abandoning the product isn’t an option.
The IPO filing by Vita Coco reflects confidence in the brand and the category’s staying power. Coconut water remains central to its identity. This move could help fund broader business growth while keeping the original product in focus.
Zico Rising’s return has been low-key but intentional. The brand’s playful, self-aware messaging hints at a strategy that avoids taking itself too seriously.
The founders aren’t waiting for demand to return. They’re working to rebuild interest, one coconut at a time.
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