Vita Coco announced that a White House executive order, issued on November 14, 2025, has removed the 23 % tariff that previously applied to most of the company’s U.S. imports of coconut water. The order replaces the old rate with an average tariff of about 6 %, while the 40 % duty on Brazilian imports remains unchanged. The relief became effective on November 13, 2025, giving the company a new cost structure for future shipments.
The lower tariff translates directly into a reduction in the cost of goods sold for coconut‑water products. Because the company’s inventory that will be sold in 2025 was already subject to the higher 23 % rate, the relief does not materially affect the company’s 2025 financial results. The benefit is expected to accrue in 2026 as the company clears the existing inventory and begins to ship products that qualify for the lower tariff.
In its most recent quarterly report, Vita Coco reported net sales of $182 million for the third quarter of 2025, up 37 % from $133 million in the same period a year earlier. The revenue beat analyst consensus of $158.3 million, and earnings per share of $0.40 surpassed the $0.29 estimate. The strong performance was driven by robust demand for the core coconut‑water line, pricing power in the premium segment, and disciplined cost management that offset modest increases in raw‑material costs.
Segment data show that coconut‑water net sales grew 42 % year over year, while the “Other” category—primarily Vita Coco Treats—also expanded. Gross margin for the quarter was 38 %, slightly lower than the 39 % margin reported in the prior year, reflecting a mix shift toward lower‑margin product lines and modest cost inflation. Despite the margin compression, the company’s operating income remained healthy, underscoring its ability to manage cost pressures while sustaining growth.
Mike Kirban, co‑founder and executive chairman, said the tariff relief will allow consumers to continue enjoying coconut water at accessible prices. He emphasized that the company’s diversified sourcing strategy and operational flexibility position it to capitalize on the new tariff regime while maintaining competitive pricing.
The tariff relief provides a clear path for margin improvement in 2026, as the company will benefit from lower import duties on a larger portion of its product mix. Combined with its strong cash position and low debt, Vita Coco is well positioned to invest in product innovation and market expansion while mitigating supply‑chain risk through diversified sourcing.
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