Once Upon A Coconut (OUAC) is making a play to be a leader in coconut water, but cracking the nut of a “boring” category can be difficult.
“In the coconut water business, the truth is, this is a very boring category,” founder John Chiorando told BevNET, citing little innovation and issues with flavor as key drivers to this outlook. “There’s an opportunity here for us to come to the market with an exciting community-driven brand that looks good, tastes great and is good-for-you and good-for-your community.”
That’s why Chiorando believes the time is right for expanding his brand’s footprint, having spent the first quarter of 2024 devoting resources to ramping up retail distribution and strategizing new ways to reach a broader audience. Along the way, OUAC has tapped into high profile investors to grow the mission-based company’s business.
Launched in 2020, New York-based OUAC is targeting whitespace for a better-tasting coconut water. With four years under its belt, the brand is now aiming high in a space where the most recognizable brand, Vita Coco, dominates sales, adding $311.2 million in the last 52-week period ending February 25, according to Circana omnichannel data. Meanwhile, as smaller players like C2O (+$12.5M) and Zico (+$6.1M) jockey for positioning, many brands continue to report double-digit percentage growth, according to Circana’s data.
In order to capture some share, differentiating could be key. OUAC currently offers six varieties (Pure, Pineapple, Watermelon, Blueberry, Chocolate and Sparkling Coconut + Energy) in 10.8 oz. aluminum cans. While its flavor and functional assortment may help it attract consumer interest, it has gone deep on messaging around the raw juice inputs sourced from Vietnam and its focus on rainforest-grown, baby green coconuts, which it chose for their sweeter flavor with less salinity.
Yet, OUAC is not the only one trying to shake-up the category. 100 Coconuts has also built a robust retail network and has similarly positioned itself as a better-tasting, canned coconut water sourced from Vietnam. And while TetraPak remains the brand’s calling card, Vita Coco’s interest in cans – as represented by its c-store oriented, two-SKU Vita Coco Coconut Juice line in 16.9 oz cans — is growing: the format represented around 31% of its total coconut water volume in 2023, according to Jefferies Equity Research analysis.
Another similarity between the two brands is partnering with professional soccer teams to increase brand awareness. 100 Coconuts recently partnered up with AC Miami while Once Upon A Coconut signed on as the official coconut water of Orlando City SC and the Orlando Pride.
The brand still sees plenty of untapped opportunities online as well. Chiorando reported that its direct-to-consumer business averages about $155,000 in sales each month, with total sales growth up 7x across all channels year-over-year.
In 2022, New York-based OUAC decided to go deep on its Northeastern home region by signing on with Big Geyser; since then it has grown its footprint to about 4,000 doors in the New York City area. Already this year, the brand is in over 6,000 retail locations across the country.
A foray onto the Innovation Shelf at Sprouts has supported that door count target; over the past weekend, Once Upon A Coconut launched into 410 Sprouts Farmers Market stores with five SKUs retailing for $2.49 each (or two for $4).
Beyond Sprouts and Big Geyser, the brand has moved into more conventional outlets with distribution in Mariano’s, Kroger and Meijer. Whole Foods and Target are also in the queue. With Target, the coconut water brand will launch in the Northeast next month with plans to go nationwide by the end of the year.With the product now available in more retailers, Chiorando said the priority now is driving volume, a shift supported by tweaks to branding, formulation and strategy. It brought on former Boxed Water and Zico executive Matt Merson as chief sales and strategy officer in January to help it focus the growth trajectory.
For starters, it replaced sucralose in its Chocolate flavor for cane sugar so the brand could get the product into Whole Foods. Additionally, it’s moving its one-liter variety from plastic packaging to a universally-recyclable, twist-top aluminum format later this year.
Rebranding its caffeinated variety to “Pure Clean Energy” Chiorando said, also brings OUAC onto a different shelf – energy. “The biggest obstacle with Energy was getting people to try it. Once they try it, the repeat customer is neck-and-neck with our Pure [flavor] — it’s growing quickly.”
Once Upon A Coconut has drawn private investment from Ultimate Fighting Championship CEO and president Dana White as well as financial buy-in from FUBU founder and “Shark Tank” judge Daymond John to help support its growth strategy. White and John both came onboard as investors in the last six months and have helped build brand awareness through their extensive networks, Chiorando claims.
In the case of John, the “shark” was spotted on Instagram drinking the product and Chiorando reached out and successfully brought him on as an equity investor.
“His entire infrastructure has gotten behind us,” Chiorando said. “He’s in the office here at least once a month. Very engaged, jumping on calls.”
One of the aspects of the company that drew John in was the brand’s mission of giving back, Chiorando said. Once Upon A Coconut has committed to giving 10% of sales to nonprofits like the Dream Machine Foundation and the Down Syndrome Foundation of Florida as well as supporting breast cancer research and raising money for toy drives.
“We want to go where the money is needed. We want to make a difference in the community,” Chiorando said. “We’re a business, we want to be profitable but along the way if we can help build people up and help communities out, that builds brand loyalty.”