Who knew Coconut Water could be this complex?
Vita Coco has grown very rapidly. At the start of 2019 they began investing systems to help manage their business processes at scale. One area of focus was getting better visibility on sales and trade promotion spending in the complex route to market, Direct Store Delivery (DSD). BluePlanner TPM by UpClear is one such system deployed by Vita Coco.
Creating the Coconut Water Category
Years ago, two men were introduced to “agua de coco” on a trip to Brazil. Upon hearing the health benefits, popularity, and enjoying the taste of this popular local beverage, it sparked an interest. They quickly identified a gap in the non-alcoholic beverage market in the United States.
(Want to learn more? Check out the podcast with Vita Coco co-founder Michael Kirban, on “How I Built This” with Guy Raz)
Coconut water has become its own sub-segment of the beverage category. Vita Coco, available in virtually every grocery and drug store in America, is one of the key brands that made coconut water what it is today – a global beverage category with over $2.3 billion in sales.
Vita Coco and BluePlanner TPM DSD Add-On
Vita Coco uses BluePlanner’s standard promotion configuration for “warehouse” retailers and distributors. It enables them to easily see the sales and spending for promotions by customer and product. But when it comes to their DSD business, things are more complicated. Promotion costs are shared between Vita Coco and DSD distributors. In order to see the complete picture, more data points like strike price, floor price, and funding split must be considered. BluePlanner TPM’s DSD Shared Cost add-on facilitates this.
With just a couple of promotion inputs, BluePlanner automatically calculates spending forecasts for Vita Coco and it’s distributor partners. At headquarters, the Revenue Management team gets a clear understanding of the P&L across the full “value chain” -Manufacturer, Distributor, and Retailer. Philip Willner, Director of Revenue Management and Strategy at Vita Coco had this to say: “The UpClear team has been a pleasure to work with. They were up to the task of adapting to our needs and we now have a great product that is very user-friendly. The reporting that was developed has given us visibility to our business that we never had before.”
UpClear makes Revenue Management software used by Consumer Goods brands around the globe. Its BluePlanner platform is an integrated solution supporting Trade Promotion Management, Trade Promotion Optimization, Integrated Business Planning, and Revenue Growth Management.
UpClear serves global and regional brands in over 25 countries across America, Europe and Asia.