UPDATE: Oct. 21, 2021: The Vita Coco Company priced its IPO at $15 per share, below its previously expected range of $18 to $21. The better-for-you beverage maker, whose portfolio includes its namesake coconut drink, said the IPO was for 11.5 million shares, of which 2.5 million are being offered by the company and the rest by existing shareholders. Vita Coco is expected to list on the Nasdaq under the symbol COCO starting on Thursday.
UPDATE: Sept. 28, 2021: The Vita Coco Company, formerly known as All Market Inc., moved a step closer toward an IPO with the filing of its S-1 with the Securities and Exchange Commission. The better-for-you beverage maker, whose portfolio includes its namesake coconut drink as well as plant-based energy brand Runa, purified water Ever & Ever packaged in aluminum bottles, and protein-infused water Pwr Lift, had net sales of $334 million for the 12 months ending June 30, a 17% increase from the same period a year earlier. The New York-based company posted net income of $33 million in 2020 compared to $9 million in 2019. Vita Coco, which plans to list on the NASDAQ under the symbol COCO, did not disclose how many shares it plans to offer in its IPO, or at what price.
Vita Coco parent All Market Inc. is planning to go public as early as the third quarter of 2021, Bloomberg reported, citing people with knowledge of the matter. The news service said All Market could be valued at more than $2 billion in an IPO.
All Market also owns Runa energy drinks, a beverage made from plants found in the Amazon rainforest, and water brand Ever & Ever, which touts its environmentally friendly credentials through the use of aluminum cans.
In going public, the beverage maker would capitalize on consumer demand for healthier offerings, a trend that has only gained momentum during the pandemic as people keep a closer watch on what they consume.
Just a month after oat milk maker Oatly's successful public offering, All Market is reportedly looking to move forward with an IPO of its own. The health and wellness trend was prominent before COVID-19 but the market for such offerings has only grown, and All Market no doubt wants to capitalize on the heightened popularity.
A stock listing would give the company cash it could use to grow its existing three brands or to acquire additional ones that would help increase its scale and heft with retailers and distributors. All Market has a small portfolio that is lead by coconut water brand Vita Coco. It also sells Runa, a plant-based energy drink that gets its boost from guayusa, a tree native to the Amazon rainforest.
Its third product is Ever & Ever water, which uses aluminum instead of plastic packaging. With 75% of aluminum ever produced in the U.S. still in use today, according to the Aluminum Association, it made sense for All Market to embrace the metal, especially for a beverage such as water where the popular plastic bottle is not frequently reused.
Despite its use of plants and nod to recycling, All Market remains a small player in a beverage landscape dominated by multibillion-dollar giants such as PepsiCo, Coca-Cola, Monster and Red Bull. Its smaller size gives it less room for error and means it's always going to be an uphill climb battling these more established, deep-pocketed companies. All Market will need to continue to find ways to differentiate its products and give consumers a reason to purchase them.
Vita Coco is by far the market leader in the coconut water space ahead of its distant No. 2 competitor Zico. Coca-Cola recently sold Zico back to a private equity firm started by the brand's creator.
The once-hot coconut water category has fallen sharply from its peak just a few years ago, under heavy competition from other healthy beverage options. Retail sales of coconut and other plant waters declined to $582.8 million in 2020, down nearly 14% from 2015, according to Euromonitor International. Vita Coco coconut water sales in the U.S. alone totaled $160 million last year, down $36 million from 2016, data from Statista showed.
In the case of the Runa, the ultra-competitive energy-drink space is lead by Monster and Red Bull that collectively hold about a 75% market share. PepsiCo, which purchased Rockstar for $3.85 billion last year and partnered with Bang. Coca-Cola recently announced it was discontinuing its energy drink offering.
Water, where private-label brands have a heavy presence, is equally competitive. Nestlé recently sold its North American bottled water business, including brands such as Poland Spring, Deer Park and Pure Life, for $4.3 billion, after years where the segment weighed on its business. Danone also has struggled in the space.
To be sure, All Market has beverages with trendy attributes, but competition is fierce in beverages and many other companies are making the same or similar products. In being a public company, All Market would be under the microscope among investors who are looking for growth and may have trouble digesting challenges plaguing certain categories like coconut water.