From humble beginnings in a kitchen, Coconut Cult has become a pioneering brand in the world of functional foods. I sat down with the Coconut Cult leadership team including founder Noah Simon-Waddell and CEO Ari Raz to learn more about their journey. We discussed the challenges and opportunities of self-manufacturing, how they have fostered community engagement, and the plans for an upcoming brand refresh.
Knox: Noah, your journey began in your mom’s kitchen, where you began experimenting with yogurt. What prompted this shift from experimenting to building a brand?
Simon-Waddell: It all began with my health struggles. I was grappling with various inflammatory issues, and my doctor’s solution was often prescribing steroids to address the symptoms. However, relying solely on steroids didn’t sit right with me. I wanted to understand the root cause of the inflammation rather than simply masking it. So, I took matters into my own hands and decided to overhaul my diet. I eliminated processed sugars, conventional flours, breads, and dairy from my meals. Instead, I began making my own food from scratch, including yogurt made from almonds and coconuts.
As I delved into creating my own yogurt, I noticed a stark difference in its quality compared to store-bought varieties. Concurrently, I made the decision to cease relying on steroids and started seeking out specific probiotic strains known for their anti-inflammatory properties. This led me to experiment with culturing these strains into my homemade yogurt, essentially amplifying its medicinal benefits. The results were remarkable—I felt stronger, healthier, and experienced improved digestion.
Recognizing the potential of my homemade yogurt, I shared it with friends and family, many of whom also struggled with digestive issues. Their positive feedback affirmed that I had stumbled upon something truly valuable—a product that wasn’t readily available in the market.
Despite lacking a traditional business background and harboring reservations about conventional business practices, I entertained the idea of turning my homemade yogurt into a business. However, I wanted to approach it differently—I sought to create an “anti-business” that eschewed traditional entrepreneurial tactics and manipulative advertising.
Acknowledging my own limitations, I actively sought out individuals with complementary skills and knowledge. This led to Ari’s involvement, as he possesses the business acumen and expertise that I lacked.
In essence, my journey from kitchen experimentation to building a brand was driven by a desire to address my health issues authentically while providing a valuable product to others.
Knox: Let’s shift gears and delve into the growth phase of the business. When did you realize the need for a CEO partner, and how did you connect with Ari?
Simon-Waddell: As our business expanded, we encountered extra complexities, particularly concerning yogurt production. Unlike many food businesses that rely on co-manufacturers, producing live yogurt presented a hurdle. No co-manufacturer was willing to accommodate our need for live yogurt production, forcing us to take ownership of our manufacturing process.
This decision necessitated meticulous planning, from forecasting future business needs to allocating resources for facility expansion and scaling up production. I found myself grappling with these complexities, realizing that while I excelled in certain aspects, I lacked the expertise required to navigate the intricate nuances of business growth.
Recognizing the need for a seasoned CEO, I began seeking someone with extensive industry experience who could complement our existing team and align with The Coconut Cult’s ethos. Ari emerged as a promising candidate—a friend within the industry whose energy resonated with ours and who demonstrated a keen understanding of the business landscape.
As our interactions with Ari deepened, it became evident that he possessed the leadership qualities and expertise necessary to propel our company forward. He seamlessly integrated into our team, quickly assuming the role of a trusted advisor on critical business matters.
Eventually, it became clear that Ari was the perfect fit to lead The Coconut Cult as CEO on a full-time basis.
Knox: Self-manufacturing presents both opportunities and challenges for entrepreneurial ventures. Can you elaborate on how The Coconut Cult has navigated this path of self-manufacturing as the business has grown?
Raz: Self-manufacturing, particularly for a small business, is no walk in the park. Prior to my tenure at The Coconut Cult, I would have advised against it for small enterprises. While co-manufacturing has its own set of benefits, such as reduced investment and liability, The Coconut Cult’s unique product posed a challenge for traditional co-packers. Our commitment to packaging in glass jars and avoiding pasteurization after fermentation set us apart, making it difficult to find a suitable co-packer.
Upon joining The Coconut Cult, I quickly realized that our product’s uniqueness necessitated self-manufacturing. This decision wasn’t taken lightly, given the inherent risks and investment involved. However, it was crucial for maintaining the integrity of our product.
To tackle the challenges of self-manufacturing, we bolstered our team with a Chief Operating Officer experienced in scaling facilities. His expertise proved invaluable as we encountered capacity constraints at our facility in San Luis Obispo, California.
In December 2022, we took a bold step by leasing a 55,000 square foot facility in Ogden, Utah—a decision that initially raised eyebrows, given our California roots. However, careful analysis revealed that Utah offered logistical advantages and cost efficiencies that California couldn’t match.
While initially, the space seemed excessive, it provided the foundation for our expansion plans. Today, we operate out of this facility, steadily increasing our production capacity. Since my appointment as CEO, we’ve achieved a ninefold increase in daily yogurt production. Moreover, with ongoing improvements and strategic planning, we’re poised to further amplify our output sixfold over the next 12 to 14 months.
In essence, while self-manufacturing presents its share of challenges, it has empowered The Coconut Cult to maintain control over product quality and foster sustainable growth.
Knox: With increased production capacity comes the need for expanded sales and heightened brand awareness, especially in a dynamic market like the yogurt aisle. How does The Coconut Cult effectively communicate its unique value proposition to consumers who may not be actively seeking out our product?
Simon-Waddell: We have a unique approach that was very timely. While I didn’t have a lot of business experience, I had some social media experience. So our approach has been straightforward, leveraging social media platforms like Instagram and TikTok to cultivate a vibrant community. Rather than relying on traditional advertising, we focus on building authentic connections with our audience. This community-centric approach has proven instrumental in driving sales and generating excitement around our brand.
One of our key strategies involves introducing monthly limited-edition flavors, which tend to garner significant attention and engagement on social media. These releases not only attract new customers but also provide an opportunity to showcase the distinctiveness of our yogurt compared to conventional options.
Central to our success is the passionate community that has formed around our brand. Our customers aren’t just purchasing yogurt; they’re investing in a lifestyle centered on clean, functional foods. This shared enthusiasm translates into organic word-of-mouth marketing and advocacy, amplifying our reach far beyond what traditional advertising could achieve.
By fostering genuine human connections online, we’ve created a space where individuals feel compelled to share their experiences with our product. This grassroots approach not only drives sales but also reinforces the value proposition of our yogurt, despite its premium price point.
Moreover, our community-driven model enables us to navigate growth challenges more seamlessly. There is a need for this yogurt and we figured out how to build a lot of relationships with our customers.
Knox: You’ve outlined some exciting plans for the future of The Coconut Cult. Could you share more about the vision for the brand in the coming years and how you intend to realize it?
Raz: Since joining The Coconut Cult, I knew from my experience at Once Upon a Farm how important it is to never really be satisfied with the current state of things. My focus has been on driving continuous innovation and growth. Looking ahead, there are several key initiatives that we’re eager to pursue.
First and foremost, we’re embarking on a comprehensive brand refresh, slated to roll out across all our products and our website in May. This refresh has been in the works for the past 18 months, led by our talented creative director, Jungho Michael Oh. Partnering with a top branding agency, we’ve crafted a new look that not only enhances our brand’s visual appeal but also reinforces our unique identity in the market. This refresh is poised to invigorate our presence on shelves and attract new customers to our products.
In addition to refreshing our brand, we’re constantly seeking ways to enhance our existing product offerings. This includes refining our recipes to ensure they deliver the most vibrant and authentic flavors possible. For example, we’ve recently reformulated our strawberry yogurt to intensify its strawberry flavor, setting a new standard for excellence in taste.
Moreover, we’re thrilled to announce the imminent launch of a groundbreaking innovation later this year. While I can’t divulge too many details just yet, I can say that it’s the result of 18 months of meticulous development and will be produced in-house. This innovation represents our commitment to bridging the gap between our loyal customers and those who may be intrigued by our products but hesitant due to price. With this new offering, we aim to make our brand more accessible without compromising on quality or flavor.
Looking beyond these immediate initiatives, we have a long-term innovation roadmap in place to drive sustained growth and expansion. Our goal is to continue introducing new products that uphold the high standards of excellence that define The Coconut Cult while reaching a broader audience at more accessible price points.
Knox: Navigating a brand refresh while ensuring continuity for existing customers is indeed a challenge. How do you plan to address this to reassure current Coconut Cult enthusiasts that the product they love remains unchanged?
Simon-Waddell: It’s a valid concern, and we’re taking a strategic approach to ensure a smooth transition. While the rebrand introduces a fresh look, our product will still be housed in our distinctive glass jars, making it easily recognizable on the shelf.
In the past, our label prominently featured a captivating image of a flamingo enjoying a coconut, with “The Coconut Cult” in smaller text. While this design became somewhat iconic, we recognized the need for clearer branding. The new design places “Coconut Cult” front and center, ensuring our name is unmistakable to consumers browsing the aisle.
Additionally, we’re excited to launch fan favorites alongside the rebrand, such as Orange Dreamsicle and Chocolate Mousse—unique offerings that further differentiate us in the market. By maintaining the same exceptional quality and introducing exciting new varieties, we aim to retain the loyalty of our current customers while attracting new ones.
To further amplify awareness of the rebrand, I’ll be leveraging social media to showcase the updated packaging and generate excitement among our followers. Ultimately, we’re confident that our loyal customers will embrace the evolution of The Coconut Cult and continue to support our brand.
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