Vita Coco shares up 32% after making bold move in response to Trump's tariffs
Vita Coco is one of the leading names in convenient, health-conscious drinks.
Its coconut water is very popular among the calorie-concerned and nutrition-obsessed, and it seems the brand is no slouch when it comes to corporate nous either.
As US President Donald Trump’s sweeping tariffs across the majority of the States’ trading partners continue to bite, Vita Coco has managed to ride the storm with aplomb.
Vita Coco sources all of its coconut water ingredients from tropical countries slapped with high tariffs by Trump, and 96% of its total revenues come from that coconut water.
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With Brazil in line for a 50% import tariff, and other source nations being hit with their own steep tariffs, you’d expect a company like Vita Coco to be battening down the hatches.
Other countries from which it sources coconuts include the Philippines at a 19% tariff, Malaysia at 25%, Vietnam at 32%, Thailand at 36% and Sri Lanka at 46%. Grim reading for coconut importers, to say the least.
However, Vita Coca has seen a 32% uptick in its share price over the past 12 months.
“Brazil is really a nonissue for us,” said Vita Coco co-founder and executive chairman Michael Kirban, according to Forbes.
“We started working on reallocating our Brazil supply, which historically goes to the United States, to supply Europe and Canada, several weeks ago.”
Meanwhile, the European division’s coconut sources in the Philippines, Sri Lanka and Malaysia will be switched to the US.
“This is something we can pull the trigger on really quickly," continued Kirban.
“With decreasing ocean freight rates and pricing [increases] we took earlier this year to mitigate the initial 10% baseline tariffs, we think we are in a good position.”
Kirban said he doesn’t think Vita Coco will implement any further price increases over the next few months, although this depends on the US President deciding not to further increase tariffs on countries from which the company sources its coconuts.
It was certainly a canny move from Vita Coco, at any rate.
Forbes was also privy to Vita Coco’s Q2 earnings call in which CEO Martin Roper said: “Our planned U.S.-based price increase in May to cover inflationary cost of goods pressures produced an approximately 7% increase at U.S. food retailers according to Circana over the quarter.”
Vita Coco’s net sales increased by 17% in Q2 2025, with coconut water driving much of that jump.
In a press release covering the earnings report, Kirban said: "I am very proud of our team and our solid second quarter performance. The coconut water category continues to be one of the fastest growing categories in the beverage aisle, with Vita Coco Coconut Water maintaining strong retail sales growth rates in the United States and our core international markets.
“For the quarter, Vita Coco Coconut Water net sales grew 25% globally with Americas growing 22% and International growing 43%. We believe this growth is being fueled by our investment as the category leader in these focus markets, driving increased household adoption and new consumption occasions.
“Together with the benefits of a stronger inventory position compared to last year, I believe we are well positioned for continued growth and I am excited for the balance of 2025 and beyond."
Rachael Davis