Crazy for coconuts?! So are we, and we’re not alone. In recent years, coconut water and coconut products have gained popularity in the US and around the world as consumers seek alternative beverages with low sugar content and nutritional benefits. It’s estimated that in 2020, the US coconut water market surpassed $1B and is on track to exceed $2B by 2024. Currently the global coconut water market is $4.2B and expected to grow at a CAGR of over 16%. With naturally low sugar and an excellent source of nutritional ingredients including fiber, minerals, and vitamins -- consumer demand for coconut products is here to stay.
Two of Copra's branded products, coconut water and coconut meat. The coconut water's pink hue indicates its naturally high in antioxidants.
That said, we are thrilled to announce our investment in Copra Coconuts, a vertically integrated and certified Organic, BRC Grade A, and Fair Trade supplier of authentic, premium young coconut products sourced from Thailand. Young Thai coconuts are the world’s gold standard in taste and quality. Their unique pink hue and aromatic taste is implied in its name Nam Hom, which means fragrant water in Thai. Founded in 2013 by Ben Minges and Chai Phonsuwan as a branded coconut water company, Copra has evolved into primarily a B2B supplier of high-quality cold chain coconut products.
Copra is one of the only cold chain coconut companies in the market. The majority of shelf-stable coconut water companies are sourced from mature coconuts and are flash-pasteurized leaving an unappealing flavor to some. The company owns a dedicated processing facility in Thailand and through their carefully architected cold supply chain has mastered the ability to provide customers with a fresh, right off the tree coconut flavor. The taste is spectacular. As the company scales and takes on new, large customers, Copra plans to use this round of funding to double its manufacturing capacity and fund working capital. The team’s hard work continues!
Why did Branch Venture Group Invest in Copra?
Copra stood out to the Branch Venture Group team as an exciting investment for three key reasons:
Unique Product Offering with Emphasis on Sustainability & Worker Conditions
The product not only tastes amazing but also is sustainably and ethically sourced. In addition to Copra’s certification audits, the company undergoes a yearly external ethics and employee audit. Copra employs a majority of female workers (70% female / 30% male) and pays workers 15% above the market. The company’s high standards and extensive certifications are a clear competitive differentiator.
Coconuts being harvested by hand at one of the canals at Copra's partner farms.
Sustainability of the land and local farming communities is a focus for the Copra team. This year, the company plans to plant a tree for every case sold. If they meet their sales estimates that would mean 200,000+ seedlings next year! The coconut farms are located in a region of Thailand that has been farmed for tropical fruit for generations, so does not require the conversion of virgin forests. Copra only partners with coconut farms that grow dwarf trees so they can be easily harvested by hand with human labor. A growing list of top US retailers have recently boycotted a Thai based coconut milk company when they discovered they were using monkeys to harvest their coconuts.
Diversified Distribution Channels & Key Top-Tier Private Label Retailer Partnerships
Copra has a diversified set of customers and distribution channels in Private Label, fast growing natural brands as well as local restaurants, hotels and cafes around the country.
In the last three years, the company has attracted and grown large private label partnerships driving rapid growth. Revenues doubled from 2019 to 2020, and are expected to double again 2020 to 2021. On your next trip to the grocery store, make sure to be on the lookout for young Thai pink coconut water in the refrigerated section. Be warned, the taste is so delicious it’s a bit addicting!
At Copra's processing facility in Thailand workers scoop out the coconut meat after the water has been extracted.
Experienced, Dedicated Founders and Advisory Board
Last but certainly not least, a stellar team and the right team for the job. It’s been a pleasure to get to know and work with Ben, Chai, and Tim. Benjamin Minges, CEO and Co-Founder, grew up in Thailand and has been leading the company for 7+ years. One of Copra’s customers described Ben as someone who works diligently on customer needs, always tries to solve problems, and never stops innovating new ways to grow the business, team, and Thailand facility. Chai Phonsuwan, COO and Co-Founder, grew up with Co-Founder Ben and his family has experience in frozen food manufacturing. He brings a strong knowledge of production and manufacturing and is committed to quality control. Ben and Chai have the support of Ben’s father, Tim Minges, who was the CEO of PepsiCo Asia & Chief Customer Officer, Pepsi North America. Ben sits on Copra’s board of directors.
Want to Learn More about Copra?
At Branch Venture Group we’re always looking to connect our portfolio companies with strategic partners, so if you have any interest please reach out to info@branchventuregroup.com. To learn more about Copra make sure to check out their website and follow their Instagram page. A huge congratulations to Ben, Chai and the team on their successful fundraise and continued success!