NEW YORK, NY - March 27, 2025 (NEWMEDIAWIRE) - Kaplan Fox & Kilsheimer LLP is investigating potential securities violations against The Vita Coco Company, Inc. (“Vita Coco” or the “Company”) (NASDAQ: COCO).
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On March 26, 2025, NINGI Research issued a report (“The Report”) alleging that “Vita Coco has been suffering inventory shortages of its own making in 2024 so severe that retail partnerships have suffered – as have sales.” In particular, the Report alleges that Costco, Vita Coco’s largest private label customer, “will ultimately terminate its contract with the company, despite having renewed their partnership in 2023” and that “Walmart has already moved Vita Coco’s branded products to a less frequented aisle and has materially reduced SKUs, resulting in a double-digit decline across all Walmart stores.” According to The Report, the loss of the Costco contract “will trigger a cascading financial crisis for Vita Coco, losing $90 million in private-label revenue. . . .”
Later that day, before the markets closed, the Company issued a statement regarding The Report. The Company stated they found The Report “contains numerous inaccuracies and mischaracterizations.” The Company also stated that:
“As we've previously highlighted, last year, we experienced significant inventory constraints which led to unacceptable private label service levels that were below our standards. As a result of these challenges, we currently expect to lose some regions with certain private label retailers during 2025. Assuming this occurs, this will initially appear on our second quarter shipments with deeper impact in subsequent quarters. These assumptions are built into our current forecast for full year net sales.”
Following this news, the price of Vita Coco stock fell $3.90 per share, or 11%, to close at $31.55 per share on March 26, 2025.
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If you have any questions about this investigation, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.
https://www.kaplanfox.com/case/the-vita-coco-company-inc/
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