Dive Brief:
- Vita Coco has acquired super-premium coconut water maker Copra in a deal worth up to $275 million, according to a press release Wednesday.
- The transaction includes a $175 million upfront consideration with an additional earnout between $45 million and $100 million in 2029 based on performance. The deal expands Vita Coca's supply chain capabilities and gives the company an opportunity to source Thai Nam Hom specialty coconuts.
- Vita Coco already controls more than half of the U.S. coconut water market. The Copra acquisition could help Vita Coco reach its goal of reaching $1 billion in sales within the next five years.
Dive Insight:
Through the deal, Vita Coco plans to expand Copra’s capacity and build out a branded Thai Nam Hom coconut business. The bulk of Copra’s sales are in the Americas, but the company intends to expand internationally.
"We see a meaningful opportunity to keep expanding the category by meeting consumers in new occasions, formats and price tiers,” Kirban said. “Copra brings specialized capabilities, deep sourcing expertise and a super-premium offering that can help us serve more consumers, and expand our market share while continuing to help shape and lead the category’s continued global growth."
Kirbin added coconut water is “in the early innings of what it can become,” and the deal presents an opportunity to expand the category through new formats and price tiers.
Copra operates in what Vita Coco called a “super-premium” segment of cold chain coconut water, in which the product is refrigerated from the time of the water’s extraction and avoids high-heat pasteurization. Copra produces that type of coconut water through an extract-and-fill-on-site operating model, and has a private label business as well as a growing branded business.
Nam Hom, the variety of coconuts Copra uses, is a Thai word that translates to “fragrant water” or “sweet aroma.” These small coconuts pack functional benefits including boosting skin and hair health, additional vitamins and fiber.
Coconut water already appeals to the better-for-you consumer because of its naturally hydrating electrolytes that serve as an alternative to sports drinks. The lack of extra processing for Copra's beverages could be appealing to consumers seeking clean-label options.
Copra expects its full year net sales for 2026 to be more than $100 million. The company said it experienced a 48% compound annual growth rate over the last three years.
On Thursday, Vita Coco reported second-quarter net sales of $216 million, a 28% year-over-year increase. Higher sales were driven by its Vita Coco Coconut Water brand, which increased 21% during the period.
Vita Coco bought Copra with 80% cash on hand and the remainder paid in common stock.
