All Market Inc., the parent company of Vita Coco, announced today that it has converted to a Public Benefit Corporation (PBC) structure, signalling an embrace of ethical, sustainable and better-for-the-planet business practices.
According to the company, the PBC model provides All Market with a framework for continuing to expand its charitable initiatives. Commenting via email, co-founder and CEO Mike Kirban said that the company has always considered social and environmental issues, but that the conversion to a PBC “gives us a formal process to prioritize it alongside the traditional business goal of generating profitable growth.”
“Essentially, we’ve added a new ROI consideration – what we’re calling ‘return on impact’ – in parallel to the conventional return on investment business model,” Kirban said. “Everything we do as a business will have these factors included in the decision making process.”
Kirban added that the company will work to integrate more socially conscious messaging into its marketing and plans to coordinate with retail partners to find new ways to educate consumers “on the implications of being a PBC.”
One arm of All Market’s social impact initiative will be the Vita Coco Project, a program founded in 2014 to support farming communities and address agricultural and economic issues. The Project aims to improve conditions for coconut farmers while also building schools and providing academic scholarships for their children.
All Market has long sought to emphasize sustainability for its product portfolio. In 2019, the company launched aluminum-packaged bottled water brand Ever & Ever, which seeks to reduce plastic waste in the beverage industry. The company has also emphasized health and wellness with the core Vita Coco brand as well as plant-based energy drink Runa.
The PBC announcement comes as All Market is rumored to be considering going public later this year. Last month, a report suggested that the company has a potential valuation of $2 billion and could list shares as early as the third quarter. The rumors come in the shadow of other wellness-focused food and beverage IPOs, including Oatly, Zevia and Flow Alkaline Spring Water, which have all made sustainability a key pillar of their messaging. Kirban has not commented on the speculation.
As the company discusses expanding its social mission parallel to its for-profit business, Vita Coco has also seen solid sales performance in recent months. According to IRI, in the 52-week period ending June 13 Vita Coco’s core line was up 10.3% to $159.3 million in MULO plus convenience. The brand’s Pressed line grew 39% to $23.8 million, while fruit-flavored Vita Coco products improved 44.7% to $23.9 million and fruit-flavored Pressed products were up 133.1% to $9.8 million.