The Vita Coco Company believes it can double the size of the U.S. coconut water category in the coming years, co-founder and executive chairman Michael Kirban announced during the business’s Q2 2025 earnings call today.
During a call with investors and analysts, Kirban noted that while the U.S. is still the Vita Coco brand’s most developed market, “household penetration is still well below other juices like cranberry juice or orange juice,” providing the runway to continue driving growth for the company and the overall coconut water category.
“Growth in the U.S. is coming from both growth in household and growth in velocity per household, through consumption occasion expansion,” Kirban said. “We’re excited about the current performance, and believe that we can at least double the U.S. coconut water category in the coming years.”
“We believe that the coconut water category is still in its infancy in markets outside of the U.S., and that there is significant long term potential as these markets develop,” he added.
Vita Coco reported net sales growth of 17% to $169 million in the second quarter, with year-to-date sales of $300 million. Net sales of the core Vita Coco coconut water brand were up 25% in the quarter, serving as the main driver behind the overall performance.
Gross profit was $61 million in the quarter, up by $3 million year-over-year, and gross margin was 36% of net sales, compared to 41% in the same period of 2024.
Kirban also credited “exceptionally strong shipment performance” as helping land the strong results for the quarter, despite ongoing economic headwinds and uncertainty.
On the call, he reiterated the company’s focus on growing its recent innovations and extended portfolio in the U.S. this year, citing an “emphasis” on multi-packs, Vita Coco Farmers Organic, Vita Coco Juice, coconut milks and the indulgent Treats line.
“According to Circana, Vita CocoTreats would have added 4% to the growth rate of Vita Coco coconut water in the second quarter, U.S. retail scans, if reported as a consolidated brand family,” Kirban said. “This is a good start, but we still have a lot of work to do.”
However, tariffs continued to loom large in the report. CEO Martin Roper said the company is anticipating the baseline U.S. tariff rate of 10% will continue, which “applies to approximately 60% of our global costs of goods sold.”
The economic policy has led Vita Coco to increase U.S. retail prices in line with the baseline tariffs, but the company is not concerned about its ability to procure ingredients and other supplies going forward thanks to its international, diversified supply chain.
“On the positive side, obviously everyone’s talking and deals are being negotiated that potentially are lower than the retaliatory rates,” Roper said during the call’s Q&A portion. “Also on a positive side, there has been anecdotal comments that maybe commodities and agricultural goods that aren’t available in the U.S. might be treated differently, but it’s all hypothetical.”