46 people have astonishingly generated 1.1 billion revenue, and this legendary business story is now experiencing a serious trust crisis.
The protagonist of this story is not a tech mogul or a financial giant, but a Thai heir selling coconut water in China—Pongsakorn.
At 46 years old, Pongsakorn is the son of Kitti Pongsak, founder of Thailand’s textile giant Suwan Group. Although Pongsakorn once worked for Suwan Group, he rose to fame through the company he founded, IFBH (06603.HK). Their product, ‘if coconut water’, prominently displayed in many supermarkets, is a hit.
According to IFBH’s prospectus, their revenue for 2024 is $158 million (approximately 1.16 billion RMB), with a net profit of $33.3 million (about 245 million RMB), all achieved with just 46 employees, making them a model of human efficiency.
The trust crisis surfaced from a report by the Consumer Research Institute of Beijing News on February 27. The report tested four popular ‘100% coconut water’ products using stable isotope fingerprinting technology, indicating the presence of external water and sugars. Although the report anonymized the brands, netizens quickly speculated that one of the products was the leading product—if coconut water.
Previously, IFBH had positioned their product as ‘100% coconut water’. This report thrust them into a serious trust crisis.
A Bottle of Coconut Water: Once a Darling of Capital
After the Beijing News report, IFBH’s stock price plummeted, dropping 22.81% from March 2 to 4.
On the afternoon of March 4, IFBH issued a stern statement via their official Weibo account, asserting their product ‘if brand 100% coconut water’ has always adhered to the principles of ‘natural and pure,’ strictly following production standards without adding external sugars, external water, or artificial flavors, with all sugars derived from natural coconuts.
The statement also cited multiple detection data points: the carbon isotope ratio aligns with the standard range for natural coconut water set by the European Juice Association, eliminating the possibility of added corn syrup, cane sugar, or other C4 plant sugars; the glucose-to-fructose ratio in the product is 0.97, consistent with the sugar composition characteristic of natural coconut water; the company has entrusted the international testing agency Eurofins for testing, which found no evidence of product adulteration.
On the evening of March 5, IFBH further emphasized through a corporate announcement that ‘if coconut water contains no external sugars, external water, or artificial flavors.’
However, these two statements and announcements failed to fully restore confidence in the capital market. On March 5, IFBH’s stock price briefly surged over 50% but then closed down at 11.06%. In the subsequent trading days, their market value fluctuated around 30 billion HKD, starkly lower than the peak of about 130 billion HKD.
Coconut water is a niche beverage segment, distinct from Hainan coconut juice, which adds white sugar and food additives.
Pongsakorn founded if not long ago. Born in 1980, he previously worked for Suwan Group before establishing his own company, General Beverage, in 2011, a beverage co-packing firm. In 2013, he made a pivotal decision to launch his coconut water brand, if.
In 2015, if entered the Hong Kong market and two years later expanded into mainland China. No one expected that this beverage brand from Thailand would soon become the industry leader in the coconut water sector in China.
According to a report by Zrac Consulting, by retail sales, if has topped the mainland China coconut water market for five consecutive years since 2020, with a market share of about 34% in 2024, seven times larger than the second competitor. Meanwhile, in Hong Kong, if boasts a staggering 60% market share, maintaining its top position for nine consecutive years since 2016.
Globally, IFBH is the second largest coconut water beverage company, second only to the American brand, Vita Coco.
On April 9, 2025, IFBH submitted its prospectus to the Hong Kong Stock Exchange, and just two months later, on June 30, it was officially listed, breaking the record for the fastest listing for food and beverage companies that year.
After it went public, IFBH attracted significant capital interest. They priced their shares at 27.8 HKD, which surged to 43.9 HKD on the first day of trading, reaching an all-time high of 48.8 HKD on July 2, with a market capitalization of approximately 130 billion HKD and a price-to-earnings ratio of 43, far exceeding beverage giants like Nongfu Spring and Nayuki.
As of March 12, IFBH stock has fallen below its offering price, closing at 11.93 HKD.
Coconut Water Giant Brewed by Chinese Youth
When IFBH applied for listing on the Hong Kong Stock Exchange, a detail disclosed in its prospectus surprised many industry insiders and investors.
As of the end of 2024, this Thai beverage company, generating over 1 billion RMB in annual revenue, only has 46 employees: 20 handle sales and marketing coordination, 5 focus on research and development, 6 are responsible for warehousing and delivery, and 15 handle administration, finance, and human resources.
At the same time, this Thai beverage company, heavily reliant on the Chinese market, has no personnel working in mainland China or Hong Kong: 43 employees are in Thailand and 3 in Singapore.
Although IFBH is a Thai beverage company, it can also be regarded as a ‘Chinese company’ since the vast majority of its revenue comes from the Chinese market. The 2025 financial report indicates IFBH generated $176.4 million in revenue, including $159.4 million from mainland China, $8.87 million from Hong Kong, and $3.6 million from Taiwan, with their total accounting for 97.4% of total revenue.
Leveraging 46 employees to achieve revenues in the billions is heavily supported by IFBH’s ultra-light asset operation model.
IFBH’s light asset model represents the extreme outsourcing approach in the beverage industry.
They do not possess factories, do not own warehouses, nor have expansive sales teams; instead, they heavily rely on external collaborations. For example, their co-packers source coconut water from coconut farmers and gatherers, logistics suppliers handle transportation, and distributors utilize logistical and marketing resources to penetrate the market and sell products.
Of course, this light asset operating model typically means a high concentration of suppliers and customers.
According to the prospectus, in 2023 and 2024, the sales volume from their top five customers accounted for 97.9% and 97.6% of total sales, respectively, with the customers being their distributors; for the same years, the amounts purchased from the top five suppliers represented 92.3% and 96.9% of total purchases, with the suppliers being their co-packers.
Although IFBH does not produce coconut water, they still maintain a high profit margin due to the price advantage of Thai coconuts. Based on the prospectus and financial reports, IFBH’s gross margin hovered around 35%, with a net margin of about 20%.
In 2017, when if entered mainland China, the beverage market was undergoing profound changes, with ‘natural, health, low sugar, no additives’ becoming the core demands of younger consumers. Especially Gen Z and new middle-class groups were gradually losing interest in traditional drinks laden with additives.
If coconut water’s core positioning of ‘100% pure coconut water, no additives, low-calorie, natural electrolytes’ perfectly addressed this consumer pain point.
According to data from Zrac Consulting, the market size for coconut water beverages in China skyrocketed from $49.7 million in 2019 to $1.2 billion in 2025, growing 24 times in six years with a compound annual growth rate far exceeding the beverage industry average, providing ample market space for the explosive growth of if’s brand.
During this rapid growth period, if and their distributors in China clearly understood the marketing strategies for the Chinese market.
They collaborated with multiple popular streamers, entering their live broadcasts, and in 2024, signed two top celebrities as brand ambassadors. Subsequently, they partnered with a highly popular boy band, which became the Asia-Pacific ambassador for their coconut water electrolyte drink series, Innococo, another product from IFBH.
This series of operations relying on top influencers helped maintain a strong presence of if among young consumers.
Emerging Concerns of the Light Asset Model
The rapid growth of the Chinese market has propelled the career of this Thai heir. Still, the heavy reliance on China has weakened this Thai company’s ability to withstand risks. Any sudden changes could pose substantial threats to the company’s development.
This public controversy is a case in point, as IFBH made responses on various platforms on March 4 and 5, attempting to quell the downward trend.
Moreover, the competition in China’s coconut water market is intensifying along with its rapid growth. According to the Zrac Consulting report, from 2025 to 2030, the market for coconut water beverages in China is expected to continue its rapid growth with a compound annual growth rate of 13%-19%, significantly outpacing the overall beverage industry.
In addition to if, international brands like Vita Coco remain formidable competitors, while local brands such as CocoMax, Gai Guo Yuan, and Hema’s own coconut water brand have also captured some market share in recent years.
For IFBH, their proud light asset model is beginning to show drawbacks, particularly with the product Innococo.
Innococo, a coconut sports drink from IFBH, was greatly anticipated by the company. According to IFBH’s 2025 financial report, their marketing expenses surged by 77% from $7.4 million in 2024 to $13 million, primarily due to hiring the Times Youth Team as Innococo’s brand ambassadors.
However, Innococo’s sales have far underperformed compared to if coconut water. In the 2025 financial report, Innococo’s revenue was only $9.67 million, while if coconut water generated $167 million. Furthermore, Innococo’s revenue drastically declined from 2024, when it reached $26.24 million.
In the financial report, IFBH noted that the decline in Innococo’s sales was not due to demand issues but stemmed from challenges with distributor performance and delays in the introduction of new sports drinks, which were particularly evident in the second half of the year, leading to a decline exceeding 90% in Innococo’s revenue.
Within IFBH’s light asset model, distributors play a critical role, and any issues here can directly impact sales.
Recognizing this, in 2025, IFBH began increasing local operational investments in China.
According to their financial report, in 2025, their distributor network in mainland China expanded from three to seven and plans to significantly broaden sales points in 2026. They established partnerships with major retailers such as COFCO and Watsons, hoping to enhance the reach of this product across retail, convenience stores, and specialty channels.
They believe that COFCO and Watsons’ extensive national sales networks can complement their existing distribution channels.
Notably, IFBH has also established a subsidiary in China. Last November, they set up Chuangxing Food (Shanghai) Co., Ltd., namely IFB China, aiming to recruit local talents to enhance their sales execution, channel management, and distributor relationships.
Additionally, IFBH is planning to explore OEM partnerships to drive local production.
However, whether these initiatives can truly address IFBH’s pain points remains uncertain. Transitioning from a light asset model to a heavier asset approach requires substantial financial investment, which may impact IFBH’s profitability. Their financial report indicates that IFBH’s net profit for 2025 was $22.8 million, down 31.7% year-on-year. Despite an 11.89% revenue growth, the substantial profit drop has raised market concerns about the company’s profitability.
For Pongsakorn, this Thai heir, balancing efficient light asset operations with reducing reliance on the Chinese market and strengthening control over core areas is a challenge he must confront.