Coco5 Expands to 7,000 Doors in Nationwide Push
Coconut water-based hydration beverage Coco5 is pushing deeper into retail across the country, expanding with chains like Target, CVS, Safeway/Albertsons and several convenience stores this year. But that growth doesn’t mean deviating from the brands’ long-running inch-wide, mile-deep strategy, according to CEO Jim Reynolds.
Coco5 was founded in 2010 and developed in coordination with the NHL’s Chicago Blackhawks with “no intent to go to market,” said co-founder Scott Sandler. But after it started selling to other NHL teams, a retail debut a Whole Foods followed shortly thereafter.
In 2022, the brand was acquired by investment banking firm Loop Capital and NBA All-Star Devin Booker, with Reynolds, Loop’s founder/CEO, taking over as chief executive of the brand. Coco5 has since aligned closely with other basketball stars, bringing in D’Angelo Russell, Derrick Rose, Marcus Morris, Markieff Morris, Jahlil Okafor and retired Hall of Famer Charles Barkley as partners in the business.
Although the business is headquartered in Chicago, Reynolds told BevNET this week that the Coco5’s number one market is the Southwest, primarily Arizona given Booker’s connection to the area as starting point guard for the Phoenix Suns. While Nevada and Southern California are also priorities for the brand, the Midwest – centered primarily around Chicago but extending into Minnesota, Michigan, Ohio and southward to Kentucky – is a close number two.
“Rule number one in this space is ‘Don’t bite off more than you can chew,’” Reynolds said. “We spent a lot of time looking at successful brands – the Olipops, the Poppis, the Bais, the Roars – all those brands, almost all of them, started in a territory and went narrow, but deep.”
Reynolds estimated Coco5’s current retail footprint at around 6,000 doors, with around 1,000 more expected to come online in the coming months. Outside of retail, Reynolds said the company is also looking to sell to cruise ships, schools and university accounts.
Most of its expansion has come in the last two years, since the acquisition. When Loop purchased Coco5, Reynolds said the brand was in around 120 Fry’s stores in Arizona and “a few Whole Foods in Chicago.” Today, the company is making a push into new channels like convenience and drug, with a national CVS rollout, and has established itself in Walmart, Target, Safeway, Albertsons, Sprouts and Mariano’s, among other chains.
Cautious of spreading itself too thin, Reynolds said the company intends to slow its expansion in 2025 to focus on the roughly 7,000 doors it will have. But that growth has meant quickly growing the team. In addition to Reynolds and Sandler, the company also has marketing lead Tyler Farnsworth and has added to its sales, merchandising and logistics teams.
“We’re really adding bodies all along the way,” he said. “We want to add cautiously as we grow. We want to just have the demand dictate the growth.”
Looking ahead, Coco5 is eyeing opportunities to establish a stake in the sports drink category, which has seen significant disruption over the past several years as first BodyArmor, and later PRIME and Electrolit have opened the door for more brands to take away from the share long dominated by Gatorade. Independent brands like Barcode and Biolyte have also made inroads.
Its strong ties to the sports world is expected to help, and has already generated some headlines for the brand – such as an April incident when D’Angelo Russell caused a stir by trying to promote the drink during a press conference in defiance of the Los Angeles Lakers’ sponsorship rules.
“That thing did over 50 million views, and it hit publications all over and it really helped explode the brand,” Farnsworth said. “It’s a testament just to the exciting talent that we have here within the org. And I can tell you, the NBA season is only a few weeks away, and there’s exciting things that’ll be coming.”
Once Upon a Coconut Expands DSD
Premium coconut water brand Once Upon a Coconut is growing out its DSD network with several new partnerships, the company announced in a press release.
The brand will now be serviced in the Northeast by high grade Budweiser/Brias, Canada Dry of Asbury Park in New Jersey, Metro Beverage in Philadelphia and Sheehan Companies in New York. Elsewhere, the drinks are now on trucks with Legacy Beverage in Colorado, Standard Beverage in Kansas, and AB Distributors City Beverage and Wayne Densche and Caroll Distributing in Florida.
The DSD growth is accompanied by retail expansion at ShopRite, Fairway, Target, King Kullen, Stew Leonard’s, Wegmans and Stop & Shop stores in the Northeast.
KEY Adds Sprouts
Startup energy drink brand KEY is now chainwide in Sprouts stores, following the brand’s launch in Erewhon earlier this year. The woman-founded brand is sugar free and contains “zero synthetic stimulants,” according to the company.
VUUM in Bristol Farms
Sparkling protein drink VUUM is now in all Bristol Farms stores, co-founder Valentino Sinacola announced last week.
“During my time at [University of Southern California] roaming the Bristol Farms aisles was one of my favorite pastimes,” Sinacola wrote on LinkedIn. “Yes — grocery stores can be comforting, entertaining, and relaxing, all-in-one. Full circle moment, and excited for fellow grocery store pastimers to stumble upon VUUM.”
Maker Wine Flies High with United
Canned wine brand Maker Wine is now serving 30,000 feet in the air via a deal with United Airlines. Co-founder and president Kendra Kawala announced the expansion on LinkedIn this week.
“One of my earliest memories was getting on board United flights with my grandparents for our annual trip to Sanibel, Florida,” she wrote.
“These were my absolute favorite times as a kid, and flying United was a given,” she added. “Flash forward thirty years, and I’m PINCHING myself that the company I started is now the main cabin Sparkling Wine on board all United flights. Truly, this is a surreal moment for Maker Wine.”
Seven Teas to Stater Bros.
Seven Teas is now available in all Stater Bros. Markets locations, according to founder Jeremy Issakharian. The brand’s canned Tropical Mango Green Tea, Uptown Half & Half Iced Tea + Lemonade and Georgia Peach Iced Tea drinks are now available in coolers at all of the retailer’s Southern California locations.
An Oil Change for Barcode
Consumers waiting on an oil change or a tire rotation can now purchase sports drink brand Barcode at Murphy’s Oil locations in Florida, according to the company.