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Skeptics of Trump administration's short-lived tariffs on coconut water argued that it made no sense to sanction produce imports that had no growing base here in the States to which the business could be repatriated. If entrepreneur Vinny Zaldivar has his way, that no longer will be the case: he says he's been planting trees on hundreds of acres in Hawaii and Puerto Rico even as Coco Love brand he incubated over past decade on cruise ships now expands out to retail, starting in Nev base and Southern Calif. With DSD partner Nevada Beverage moving 22K cases in first 6 mos even without meaningful degree of marketing support, co feels it's shown that time is ripe to build extensive DSD network and go big. Initial partners in markets like Calif, Florida, NC and Pac NW so far have been a mixture mainly of Budweiser houses and indie Pepsi bottlers. Zaldivar also says he's setting groundwork for $10 mil capital raise to support buildout. And some time in coming years, co will be able to procure its coconuts right here in North America, avoiding supply chain snarls, tariffs and sustainability issues that come of sourcing nuts from halfway around the globe. Coco Love brand goes out in Original version in 11-oz and half-liter cans and, unusually, in half-gallon jugs that offer more meaningful multiserve option than 1-liter Tetras that constitute top of size range for many brands. It also goes out with Pulp line. The 64-oz has proved a "juggernut" as one of best sellers in Walmart, with entry into Costco's Hawaiian stores next, per entrepreneur who likes to go by CocoVinny. The cans sport a bright red heart image because, as glib founder puts it, "If they see the heart, they'll put it in the cart." Coming in coupla months is a chocolate line too. Among early retail partners have been 600 stores operated by H&S Energy as well as 200 Terrible's stores and all ABC stores in Hawaii. Brand just entered Walmart on regional basis. Distribution network being assembled by prexy Rob McConnell, a 25-yr Pepsi vet, includes Pacific Beverage and John Lenore in Southern Calif, A-B houses Eagle Brands, Southern Eagle and Sun Coast Beverage in Fla and RH Barringer in NC. Also aboard are Pepsi bottlers Weinstein Beverages, Walton Beverage, L&E Bottling, Nackard Pepsi, Safford Pepsi and Crater Lake Pepsi. Zaldivar said he's seeking partners throughout US now. To support expansion, Coco Love has recently acquired a 47K-sq-ft former Von's supermarket in Boulder City, Nev, for conversion into a distribution hub, to avoid punishing pricing and neglectful handling Vinny said he receives from 3d-party logistics providers. He's hoping to support the effort with capital raise of at least $10 mil this summer, likely in form of a secured note with an equity component to minimize dilution.As CocoVinny recounted, his foray into coconut water began a dozen years ago when he decided he could improve on polarizing flavor of popular packaged coconut water brands, devising patented process to get fresh-off-the-trees flavor that might be embraced by cruise ships, resorts and other spots with need for "vacation hydration." Neither ecomm nor retail was in the mix. Plan proved a success, with major operators like Royal Caribbean, Celebrity, Princess and Virgin becoming major customers. Fresh-tapped process called Coco Taps landed prestige accts like Bellagio as customers. But arrival of pandemic in 2020 prompted a rethinking that led to current retail push.Among key members of leadership team is Zaldivar's wife Ashley Younger as corporate controller (she recently had their first child, named Coco, of course, with another on the way shortly). Vinny also just brought on Outlaw Energy and Blue Triton vet Ernie Manansala to forge marketing plan focused on good times.For now, the co relies mainly on Vietnamese fruit along with Thai product for its fresh line. The domestic trees are anticipated to start bearing fruit within next coupla years, tho not on scale required to support fast-growing business. Still, having taken over a decade to make first move into retail, Zaldivar said it should be clear by now that he's all about the long game.

STRATEGY: Coco Love Coconut Water Quickly Builds Out DSD Network While Planting Trees That One Day Will Support Domestic Growing Base; Mainly Bud & Pepsi Houses So Far

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