Scoop of Success

Mr. Coconut: The creamy coconut drink brand that took Singapore by storm

October 31, 2024

Looking for a refreshing drink to beat the tropical heat? Mr. Coconut might be just what you need.

Known for their fresh, coconut flavors, this brand has quickly become a favorite in Singapore.

But Mr. Coconut wasn’t an overnight success. It started with a different name, a broader menu, and three founders with no experience in the F&B industry.

Here’s the story of Mr. Coconut, the brand that took a leap of faith to find their flavor—and grew into a local icon.

🤔 Just getting started

In 2015, founders Andrew Cai and Vivian Yeo wanted to dive into Singapore’s F&B industry—with zero experience.

At the time, Andrew was an employment agent and Vivian was an accountant.

Together, they traveled to Melacca in Malaysia. “There were many, many stalls selling coconut shakes, along the roadside,” said Andrew. “We tried this particular shop, it was nice. The queue was crazy.”

They wondered if these refreshing drinks would be a hit back home in Singapore, too!

🧋 Bumps in the road

At first, the three friends wanted to sell different kinds of drinks at their store, Xiang Yu Icy House. Milk tea was popular, so they added it to the menu. To get even more customers, they sold gelato, too!

They gave out free samples and asked bloggers to promote their products.

But despite their hard work, sales were slow. They only made about 100–200 SGD a day.

“Maybe it was because of the branding–there was no focus point, people didn’t know what we were selling,” said Andrew.

🥥 Learning to pivot

But the team wasn’t ready to give up yet. They brought Vivian’s friend Lucas Lin onboard.  

Lucas was a property agent. Originally, he suggested they open the store in a spot with cheaper rent. But Andrew and Vivian chose to go with the more expensive spot in Far East Plaza.

Because they already spent a lot of money on rent, they wanted to keep pushing forward.

Instead of trying to do all kinds of drinks, they wanted to perfect their coconut-based ones.

So they rebranded to Mr. Coconut and spent the next two years experimenting with different types of coconuts from different countries.

This shift changed everything. Mr. Coconut quickly gained popularity as word spread. Customers loved the fresh taste and smooth, satisfying blend of coconut juice, coconut meat, and ice.

📈 Nowhere to go but up

In 2017, they opened another outlet. But in 2019, they really started to expand, with over 40 outlets all over Singapore and 220 employees!

Even during COVID, Mr. Coconut kept growing. People would share the drinks with their neighbors, making bulk orders!

“It helped us to reach a lot of customers that never tried our products before,” said Andrew.

“Since our business was picking up, it gave us confidence to take up new spaces. We rode the wave and when the lockdown was lifted, our outlets were able to open. So, in a way we were quite fortunate.”

🤩 Here and now

But just because they’re focused on coconut drinks, that doesn’t mean they’re complacent! They’re always thinking of new ways to innovate their products.

“You have to be unique and focus on one particular product that is not following a trend. You must create your own trend – that’s what we believe,” said Andrew.

If the founders stuck to their original vision of bubble tea and gelato, they wouldn’t have gotten to where they are today.

But because they pivoted, Mr. Coconut became a staple in Singapore, with dozens of outlets and a growing fanbase. Now, they even opened their first dine-in cafe in Singapore, and they hope to open more!

While they didn’t have the best start, Mr. Coconut’s journey shows that with the right insight and pivot can completely change the trajectory of your business—for the better.

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