Small business takeaway:
- Competing in a multibillion-dollar market dominated by giants like Coca-Cola and PepsiCo, Once Upon A Coconut demonstrates how a purpose-driven mission, innovative product design, and strategic partnerships enabled a business upstart to carve a niche in a big market. By leveraging sustainability and organic buzz, the startup has attracted celebrity investors and achieved rapid growth.
It takes a lot of moxie to launch a beverage startup in an already crowded market packed with big and established brands. But sometimes founders find a way to carve a foothold in a market for a unique product that resonates with consumers.
That was the experience of the four-member founding team of coconut water brand Once Upon A Coconut: CEO John Chiorando; Alan Vladusic, Chief Creative Officer; Marc Sampogna, Chief Brand/Marketing Officer; and Ray Burbige, Chief Operating Officer. In 2020, the four men — with backgrounds in brand marketing, sales, and logistics — decided to pool their collective talents and develop a hip wellness beverage brand to appeal to young Gen Zers and millennials.
The goal was to create a better-tasting beverage that was also great for hydration. To differentiate itself from existing coconut water products, the entrepreneurs decided their company should focus on sustainability and ethical sourcing, as well as giving back to the community by donating a percentage of profits to charity.
Their strategy is working. They have attracted equity capital from well-heeled investors, including “Shark Tank” star Daymond John, Founder and CEO of FUBU; health guru Gary Brecka; and sports stars like Baltimore Ravens offensive tackle Ronnie Stanley, who have helped rapidly grow company sales and distribution through partnerships.
Once Upon A Coconut has tapped into a market poised for growth. The coconut water market is valued at over $4.4 billion and is projected to reach $11.43 billion by 2030, according to Grandview Research.
CO— spoke to Co-founder Sampogna to learn how the company is building a lifestyle wellness brand to rival corporate competitors against all odds.
CO—: Why did you and your co-founders decide to launch a coconut water product during the height of the pandemic?
MS: The timing was perfect since during the pandemic, consumers were very concerned about their health and nutrition and wellness products were on the rise. We did a lot of market research on the beverage market and saw a niche opportunity in the coconut water space, since it is a healthy alternative to other sports drinks rich in vitamin C and other minerals. We thought we could disrupt the market and create a better-tasting product with no artificial ingredients, designed in sleek aluminum cans geared for a younger generation.
CO—: Where do you source the ingredients for your product?
MS: We looked around the world and discovered that [the city] Bến Tre, Vietnam, is one of the top producers of green coconuts, which are naturally sweeter and packed with essential electrolytes like potassium, calcium, and magnesium.
So, we traveled there to see how they are harvested to determine if we could source from there. We found that they are grown near freshwater, so the coconut water is clean and [free] of impurities. They are also grown in cold temperatures, which improves the density of water in the fruit. Vietnamese farmers know how to cultivate and harvest these trees using traditional methods to ensure a high-quality product.
We decided to build a factory at Bến Tre to pasteurize the coconut water and package it in eco-friendly aluminum cans.
Consumers like the fact that our coconuts are ethically sourced, and we plant a tree for every case sold by [sustainability impact tracking platform] Greenspark, reinforcing our commitment to environmental sustainability.
CO—: How did you initially fund your startup and attract celebrity investors?
MS: For the first two years, we self-funded the company and raised additional [funding] from family and friends. After that, we were able to get additional angel financing from celebrity investors, including Daymond John and Ronnie Stanley of the NFL.
Our budget was limited, and we needed to be strategic in our marketing efforts, so we ran ads and built influencer campaigns across sports, fitness, and fashion categories. We tapped well-known creators in each of these areas.Marc Sampogna, Chief Marketing Officer of Once Upon A Coconut
Our celebrity investors didn’t come to Once Upon A Coconut through a traditional pitch process; they came to it the same way our consumers do — by discovering and loving the product organically.
As the brand began showing up more widely in retail, at fitness centers, courtside, at baseball fields, and backstage, it started generating word-of-mouth buzz. Several of our investors, such as Daymond John and Ronnie Stanley, encountered the product on their own, whether through personal routines, trusted recommendations, or seeing it in-market. Separately, through our broader network, we were able to get cans into the hands of a few key individuals like Gary Brecka simply to sample it — no decks, no pressure.
The reaction was immediate. They connected with the taste, the clean ingredient profile, the sourcing story, and the brand’s purpose-driven mission. What followed were authentic conversations rooted in genuine enthusiasm, not transactional investment.
[Read more: How CEOs Who Became Influencers Are Supercharging Company Sales]
CO—: Explain how you began marketing the product.
MS: We started by selling directly to consumers through Amazon and our website. Our budget was limited, and we needed to be strategic in our marketing efforts, so we ran ads and built influencer campaigns across sports, fitness, and fashion categories. We tapped well-known creators in each of these areas, such as wellness and fitness expert Ben Greenfield, who focused on the importance of hydration for fitness goals. To attract influencers, we sent them product samples so they could taste the product and find out about the health benefits themselves.
Last year New York Yankees star Jazz Chisholm Jr. became a brand partner and ambassador for the product as well. In exchange, the company actively supports his charity, the Jazz Chisholm Foundation, that supports young athletes and their families in high-need areas in Florida and the Bahamas.
CO—: What has been your distribution strategy so you can get the product on store shelves?
MS: In 2022 we had a breakthrough. The product landed in the hands of executives at Big Geyser, the largest nonalcoholic beverage distributor in the Greater New York area. They liked it so much they entered into a partnership distribution agreement with us. That was huge since they distribute to all major grocery, drug store, convenience, and club chains. Having them as a partner has also opened doors for us in other markets. Our coconut water is now sold across the country in a wide variety of stores, including Whole Foods, Costco, Sprouts, and Walmart.
CO—: How are sales growing?
MS: Our sales are booming and are up 100% year over year. We are now selling about 55,000 cases a month. In December, we entered into a strategic partnership with L.A. Libations, a leading beverage incubator and accelerator, to expand into more retail markets in the U.S.
We now have six varieties, including Premium Coconut Water; flavored blends like pineapple, watermelon, blueberry, chocolate; and functional drinks such as Sparkling Coconut Water + Energy that has 120 milligrams of caffeine.
CO—: Is fast growth a challenge for your startup?
MS: Yes. We must be sure we are stocked with enough inventory to meet demand. We have hired a team of people to manage quality controls in Vietnam to ensure we maintain top standards.
CO—: What is the company’s mission beyond making a profit?
MS: We are committed to sustainability and community impact. The brand packages its coconut water in eco-friendly aluminum cans and plants a tree for every case sold through its Greenspark partnership.
Additionally, Once Upon a Coconut donates 10% of its profits to nonprofit organizations such as the Down Syndrome Foundation of Florida, the Tunnel to Towers Foundation, and the National Alliance on Mental Illness, furthering [our] mission to support both the environment and communities in need.
CO—: What advice would you give other entrepreneurs interested in launching a sustainable business?
Create a product that really solves a consumer need and educate the public about your company’s sustainability commitment. Tell a story that resonates with consumers but also delivers on its promises. To be successful, you must be patient and stay the course. It takes time to build a trusted brand.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
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