Greg Lowe has set a high bar for his brand 100 Coconuts.
“We want to be known as the coconut water king,” the entrepreneur told BevNET last week.
Although Lowe’s aspirations might seem ambitious, the brand has already made big leaps in the competitive coconut water category. After completing LA Libations SIP (SoCal Incubator Program) mentorship accelerator, 100 Coconuts has gone from having relatively no West Coast presence to preparing to hit 20,000 stores by the end of September with distribution deals in major retailers.
The New York-based brand has distribution with KeHe, UNFI, Muscle Foods and has added 400 Walmart stores in seven states to its established distribution network which includes Gopuff, HEB in Texas and 1,100 Publix locations, among others. In September, 100 Coconuts will hit the shelves of Safeway locations and at least 250 Target stores in Florida, California, Ohio, New York, New Jersey and Georgia.
Currently, the brand offers 11-ounce slim cans in three SKUs: a 100% pure coconut water (suggested retail of $2.49 per can), a 4% ABV, tequila-coconut RTD cocktail ($3.99/can) and a 20mg CBD-infused version ($4.99/can) sold exclusively in Vitamin Shoppe locations. 100 Coconuts also has a new carbonated energy drink flavored with lemongrass set to launch in November.
Competition is steep for market share in the coconut water category. According to 52-week data ending on June 6 from IRI, single-serving Vita Coco beverages sales are up 19.3% and Harmless Harvest is up 14.9% from a year ago. The recent news that Vita Coco and Diageo are collaborating on a RTD cocktail featuring Captain Morgan rum further complicates a sub-category that is branching off into canned cocktails.
Yet, Lowe sees the different routes to market as a strength that the company can use to explore non-traditional channels for his beverage.
“This is a lifestyle brand, he said. “We all know that coconut water is good for you. Now, it’s about telling the story about why this coconut water makes a difference in your life.”
100 Coconuts markets to what Lowe calls the “modern independence” demographic who are less focused on legacy brands but are looking for products that can be incorporated into their value system.
Lowe has capitalized on his experience working in tech to use pop-culture in marketing his coconut water. The brand’s collaboration with TikTok and designer Karim Rashid as well as the limited edition Black Lives Matter cans were not only successful in building on cultural moments but have driven trial among new consumers. It all comes back to authenticity which is encapsulated in the name 100 Coconuts that refers to keeping things authentic or “keeping it 100,” said Lowe.
Lowe attributes 100 Coconuts growth to SIP and the work that LA Libations has done guiding the brand to strong velocity throughout Southern and Northern California. The program, launched in 2020, places designated coolers or shelf-stable displays featuring L.A. Libations partner brands at select retailers for a limited period. Lowe’s brand thrived within that mix; at its peak, 100 Coconuts sold 47 units per day per store in SoCal specialty chain Erewhon Market, he said.
LA Libations CEO and Co-Founder Danny Stepper calls 100 Coconuts a case study for the success of SIP and LA Vibrations, the marketing arm of LA Libations.
“We put [the brand] in Southern California a mile deep and an inch wide. That’s how we garner what proof of concept is and then we take that story, which is really based on velocity per outlet, and we use it to expand, like Greg has done with Walmart.”
L.A. Libations will continue to play a role in shaping the brand’s growth as an equity investor, while LA Vibrations will help the brand with retail authorizations and continue to provide coaching and mentoring as 100 Coconuts moves from the “minor leagues into the major leagues,” Stepper said.
“There were 10 people in our company working on SIP and now there will be 80 people working on 100 Coconuts,” he said.
Lowe also credits the mentorship from high-profile investors like Bill Deutsch of Yellowtail Wines fame and the Lee Family – who were behind Snapple’s early success – in helping guide the company to its current level of success. The brand also lists Good Morning America co-host Michael Strahan and professional soccer player Guiseppe Rossi as investors.
Lowe feels prepared to meet the challenge of more mainstream distribution in Safeway retailers and Target stores in the fall due to some of the lessons learned while enduring supply chain issues and inflationary pressures during the past two years. Even as the company struggled to keep product on shelf in Publix stores during the height of the pandemic, Lowe continued to market the beverage aggressively to stay relevant.
He learned to bring more product in than he could forecast selling so that he could be prepared to resupply even in the face of supply demand and transport challenges. Now, 100 Coconuts operates out of over five distribution centers strategically located throughout the country to supply retailers quickly when reorders are placed.
The company is gearing up for a Series A funding round in September to help scale the business even further nationally and grow its sales and marketing teams.
“Graduating from SIP is awesome but really the work starts now,” Stepper said.