Coconut Beach competes on quality and price with ¢99 coconut water

By Mary Ellen Shoup contact

- Last updated on GMT

Coconut Beach feels says that they can offer an affordable coconut water without sacrificing taste or quality.
Coconut Beach feels says that they can offer an affordable coconut water without sacrificing taste or quality.

Related tags: Marketing

Coconut Beach is aiming to break down the perception that coconut-based beverages have to retail at a higher price point by selling products across its entire beverage line for $0.99. 

The health and price-conscious company was founded less than a year ago by Mitch Compton, Mike Reidy, and Kent Harrington in San Diego, California. All three say they strive to “keep things simple”​ in their business from ingredients to price, without sacrificing taste or quality.

Coconut water retail sales are estimated to hit $2bn annually, according to the company, and Coconut Beach believes there is no better time to enter the market, especially with a product that successfully competes on price.

The coconut water comes in a 14.5-ounce can and is non-GMO, free from preservatives or additives, as well as gluten and dairy. The product is available in over 15,000 stores across the US including the Dollar Tree, Grocery Outlet, and Food 4 Less and will also be on Amazon later this year, the company said.

‘Tree-to-shelf’ business model

But how does Coconut Beach manage to keep prices so low when the average price of coconut water is around $1.99?

“We are involved in this business from tree-to-shelf, which reduces the need for unnecessary overhead in the form of departments and employees to handle specific areas of this business. We are able to pass those savings on to the consumer,”​ Compton said.

Part of the tree-to-shelf business model includes the several trips the Coconut Beach team has taken to Thailand,where their coconut products are manufactured. Compton said that his team believes their business has had a positive effect on farmers and the local community.

“From these visits, we are able to assure that workers were happy and fairly paid, conditions were clean, and time clocks and cards were on the wall just like a factory in this country,”​ Compton said.

'Consumers have voted with their dollar'

The company’s target audience is “anyone that pays more than $0.99 for coconut water and coconut chips,” ​co-founder Mitch Compton told BeverageDaily. Additionally, Coconut Beach hopes to draw in a consumer set that is reticent to pay a high price point for coconut water with their more affordable product.

“Health and wellness as a category is growing by leaps and bounds and we are excited to be a part of that movement at a price just about anyone can afford without sacrificing quality or appearance,” ​Compton said.

Through the company’s active social media presence, Compton found that a diverse age range is consuming coconut beach products.

“We feel our price point is fair and consumers have voted with their dollar so to speak and have validated our strategy,” Compton said.

Competing on all fronts

Coconut Beach is currently working on further expansion and brand recognition of its product line by strengthening and growing retailer relationships. One of the keys to the company’s recent rapid success is knowledge, Compton said.

“We are students of the business and we understand very well you cannot scale what you do not understand,”​ he added. “We're fun, our price point is approachable, and the taste is second to none.”​ 

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2 comments

Amazon

Posted by Nicole,

I can't wait till the coconut milk drink is on Amazon. My town is small minded and doesn't like very diverse foods, and stored are stocked accordingly. I would have a much more reliable supply shopping online.

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Why?

Posted by Joni,

Why did Coconut Beach water start using a small can and not the 16.5 fluid OZ. at the same price??? Why???? I love Coconut Beach Water with pulp.

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