Sign in

    Ethan Huntley • Goldman Sachs

    Ethan Huntley's questions to Vita Coco Company Inc (COCO) leadership

    Ethan Huntley's questions to Vita Coco Company Inc (COCO) leadership • Q1 2025

    Question

    Ethan Huntley of Goldman Sachs inquired about The Vita Coco Company's strategy for mitigating tariffs, including whether they front-loaded inventory, and asked for the rationale behind raising the SG&A growth guidance.

    Answer

    CEO Martin Roper explained that tariff mitigation involves leveraging their healthy inventory position, ongoing cost-saving initiatives, supplier negotiations, and planned pricing actions to offset the 10% baseline tariff. CFO Corey Baker clarified that the updated SG&A guidance reflects a wider range of potential spending outcomes for the year and noted that while marketing ROI is hard to calculate precisely, they continually adjust spending based on performance metrics.

    Ask Fintool Equity Research AI

    Ethan Huntley's questions to Vita Coco Company Inc (COCO) leadership • Q4 2024

    Question

    Ethan Huntley inquired about the growth outlook for the coconut water category, Vita Coco's market share strategy given its mid-teens growth target, and specific initiatives to increase household penetration. He also asked about distribution upside by channel and potential shelf space gains from upcoming resets.

    Answer

    CEO Martin Roper stated that long-term category growth is expected in the high-single to low-double digits in North America, with faster growth internationally. He noted a recent acceleration to the low-20s. Roper explained that growth initiatives focus on education, trial, and retail execution. He identified significant distribution opportunities in convenience stores and for multipacks in food and mass channels, while also addressing a recent Walmart shelf reset which is expected to be a long-term positive despite a short-term drag on scan data.

    Ask Fintool Equity Research AI