CocoCoast, one of Australia’s largest independent beverage exporters, is targeting $200 million in annual revenue within five years after growing 53 per cent in the past year, as it looks to exploit gaps in the US beverage market created by offshore brands pulling out amid tariff disruption.
The company currently generates around $25 million in annual revenue and sells around 50 million cans, or 25 million litres, annually across 20 European and Asia-Pacific markets.
CocoCoast has also inked new distribution deals across its offshore markets, while its products are now supplied to the World Health Organisation.
According to co-founder Damian Russell, they are returning to the US after stepping back from the market for 18 months amid uncertainty over import tariffs and landed costs, with a new Seattle-based distributor appointed to initially target Washington and Oregon.
He says their distributors have identified gaps in the market after a number of imported beverage brands withdrew or reduced distribution as tariff uncertainty increased costs and complicated the economics of supplying the US.
“These gaps have helped create the right conditions for our brand to re-enter the market. The challenge in the US wasn’t demand but the uncertainty around what a shipment was ultimately going to cost when it landed,” he explained.
“Across the wider food and beverage sector, tariff changes can become particularly complex because the final landed cost of an imported product can be affected by factors ranging from where it is manufactured to the origin of ingredients, packaging and other components.
“Different parts of the supply chain can also be exposed to different tariff treatments depending on where they originate, making it harder for importers and distributors to forecast costs and establish pricing with confidence.
“For food and beverage brands operating across multiple markets, that uncertainty can quickly become difficult to manage. We made the decision not to force the issue. We are now coming back with a new distribution partner at a time when distributors are telling us some offshore brands have pulled back or left altogether, creating sizeable gaps in the market.”
Russell adds they are also watching the wider trade disruption between the US and Canada for potential opportunities, particularly as retailers and distributors look to reduce their exposure to products affected by tariffs.
“We don’t have anything directly in the pipeline in Canada at this stage, but it is something we are watching closely,” he continued.
“Trade disruption can change supply chains quite quickly. If tariffs make existing products more expensive or difficult to source, retailers and distributors naturally start looking for alternatives and ways to diversify their supply.
“That could create opportunities for independent brands like ours, particularly in Canada, but we would only enter if the economics and distribution model were right.”
Russell says the company intends to rebuild its US presence selectively rather than immediately chase national distribution.
“When brands pull out or reduce their presence, distributors are left looking for products to fill that space. That creates an opportunity for us, particularly because we already know there is consumer demand for CocoCoast in the US,” he continued.
“Our approach will be to establish the product through the right local channels, prove the rate of sale and then scale from there.”
The new distributor has purchased the first two containers for CocoCoast’s return, with the company targeting approximately US$500,000 in first-year US sales.
Its initial focus will be on key Pacific Northwest states before geographic distribution is expanded.
CocoCoast also plans to launch on Amazon US within six months of its first shipments landing, providing a national sales channel while physical distribution develops.
The company has a database of around 600 US consumers who have asked to be notified when CocoCoast becomes available again.
Russell says the existing following means the company is returning with a consumer base already in place.
“We still receive messages from people asking when they can buy CocoCoast in the US again, so we are not rebuilding the market from a standing start,” he said.
“There are already consumers waiting for the product. We want to use that demand to establish a strong base and then expand once we have the sales numbers to support it.”
The US strategy forms part of a wider international growth plan, with the company targeting $60 million in annual revenue from the UK and Europe alone within five years, representing around 30 per cent of its global revenue target.
Over the same period, it aims to be available in more than 7500 retail outlets across the UK and Europe.
The expansion comes as the international coconut water category continues to grow rapidly.
Industry research values the global coconut water market at around US$5.1 billion in 2025 and forecasts it will reach US$19.3 billion by 2033, equivalent to average annual growth of approximately 18.2 per cent. Europe is forecast to grow at around 20.2 per cent annually over the period.
CocoCoast’s latest annual growth rate compares with forecast category growth of around 18 per cent globally and 20 per cent in Europe.
Russell says the company’s recent performance and the scale of the offshore markets it is entering underpin its longer-term growth targets.
“Our five-year ambition is to reach A$200 million. That is a substantial increase from where we are today, but the biggest opportunities available to us now are in markets many times larger than Australia,” he explained.
“We have spent more than a decade proving the model here. The next stage is about taking that model offshore and building much greater scale.”
Europe has become a particular focus because coconut water remains at an earlier stage of category development in a number of markets than it is in Australia.
CocoCoast currently sells across markets spanning Europe and the Asia-Pacific, with further expansion planned through existing and new distributors.
According to Russell, the company believes it can secure a meaningful position in Europe as the category develops.
“Coconut water has become a mainstream category in Australia, whereas in a number of European markets it is still emerging,” he said.
“That creates an opportunity to establish the brand as the category itself grows, but simply being distributed in another country isn’t enough.
“We will measure success by repeat purchase, rate of sale and profitable market depth. The aim is to build sustainable markets rather than simply add more flags to the map.”
In the UK, CocoCoast expects to launch through Amazon within around six weeks as it builds consumer sales history to support wider retail distribution.
The company says its offshore strategy will follow the model used to build the Australian business, establishing demand through independent, specialist and online channels before moving selectively into larger retail networks.
