Archive for July, 2014

Great Ideas and Passionate People = Success

July 29, 2014

Here’s a great story – the formula is simple….take a great idea and put some passionate people behind it and you can create a booming business. Simple, right?
For Coconut Waters, a Street Fight for Shelf Space

Today’s Valuations Update

July 23, 2014

fyi, $150 million for a 90% stake in Apple & Eve – trailing revs of $190 million and EBITA of $15.2 million…..values the company at 1x trailing revs…..11x EBITA… continues to be a buyers market. Vida Coco – as hot as a brand can be – just sold equity for 2.66x trailing revs.

Lassonde Industries to Acquire Apple & Eve for $150 Million

Today’s Valuations

July 14, 2014

Vida Coco, one of the fastest growing brands in the US beverage industry, and the leader in the coconut water category with almost 70% of the market, just sold a 25% equity stake in the company to the Reignwood Group, the Beijing-based parent company of Red Bull China. The agreement with Vida Coco, with trailing revenues of $250 million in 2013, values the company at $665 million – 2.66x trailing revenues. According to Mark Kirban, Co-Founder of Vida Coco, the company’s growth last year was “triple-digit”.

I highlight the above because it shows the state of valuations today vs a few years ago. I think the days of valuations of 7-15x trailing revenues are over. Vida Coco is one of the fastest growing and most attractive brands in the US market.

It certainly seems like a buyers market today.