What caused COCO's Q3 earnings to fall short of forecasts?

The Vita Coco Company's (COCO) Q3 earnings fell short of forecasts due to several key factors:

1. Inventory Constraints and Private Label Service Levels: COCO faced significant inventory constraints, which led to subpar service levels with private label retailers. As a result, the company anticipates losing some regional private label business, particularly with Costco, a key account that represents approximately 25% of its net sales. The anticipated loss of this significant contract contributes to the revenue shortfall forecasted by NINGI Research.
2. Supply Chain Mismanagement and Related-Party Transactions: Allegations of supply chain mismanagement and undisclosed related-party transactions have cast doubt on the company's internal efficiency and transparency. These operational issues have further impacted investor confidence and could potentially affect financial performance

In summary, COCO's Q3 earnings fell short due to a combination of inventory constraints, private label service level challenges, and operational inefficiencies. These factors, exacerbated by allegations of supply chain mismanagement and related-party transactions, have collectively contributed to the company's current financial situation.