Vita Coco: Pandemic profit challenge
As coronavirus concerns have led consumers to stock up on pantry essentials, including nutritious beverages, Vita Coco has seen an unexpected sales surge for its shelf-stable coconut water. Over the past few weeks, Vita Coco sales have increased upwards of 100% across major retailers. Confronted with a crisis of conscience about the state of the business, Vita Coco’s chief executive and co-founder Michael Kirban commits to investing $1m of the company’s incremental profits into the resources that need it most.
Vita Coco will donate $1m collectively to Feeding America and No Kid Hungry to support families, children and seniors in the most vulnerable communities affected by the coronavirus outbreak and beyond. The first donation of $500,000 will be made immediately across both organizations to include support of their Covid-19 Response Funds.
And Kirban wants others to do the same. On Twitter, he is challenging other businesses – like Netflix and Charmin – who are also benefitting from surging sales to reinvest their incremental profits into relief efforts as well.
“It’s been really jarring seeing the business benefit from rapid growth amidst a growing global crisis,” said Kirban. “I feel that it’s our responsibility as a business to do what we can, to help support people who need it most, while we’re in the position to do so. We don’t know what the future will bring, but for now, we feel that the right thing to do is to invest into organizations that can use it to directly impact communities affected. I hope this pledge serves to encourage other businesses in a similar position to evaluate their strategies and take similar action.”
More than 37 million Americans face food insecurity, over 11 million children in the United States live in food-insecure homes and 22 million children rely on free or reduced-priced meals at school. As coronavirus causes families living paycheck to paycheck to lose their jobs and schools nationwide to close, Vita Coco is teaming up with Feeding America and No Kid Hungry to allocate essential resources to communities in need.
Vita Coco’s donations will contribute to the organizations’ Covid-19 Response Funds, which include providing emergency grants and other assistance to those working to help feed kids as schools close due to the coronavirus, giving emergency grants to food banks, schools and community groups working to help provide access to food and supplies and more.