Coconut water is becoming the strongest competitor of the world’s most famous beverage brands like PepsiCo, Inc (NYSE:PEP) and The Coca-Cola Company (NYSE:KO). People wanted change in the refreshing beverage brands since long and it seems Brazil is the ground breaking place for the next big thing we are about to see in the beverage industry. Once a Rio beach drink, Coconut water is now a hot selling cake around the world because of its refreshing nature, healthy ingredients and cheap prices. The US markets are now making key decision around this new beverage of the town. Bloomberg shed some light on the rising coconut water brands and their implications on the famous beverage companies.
The Rio beach’s favorite drink primarily consists of the natural coconut water which is jam-packed with potassium and electrolytes to make it more refreshing, tasty and cool.
Consumer markets are clearly putting their weight in the favor of Coconut water products and taking it as a great alternative to sports drinks and sugar water supplements.
PepsiCo, Inc (NYSE:PEP) and The Coca-Cola Company (NYSE:KO) are not taking this rise of coconut water lightly. In 2009, The Coca-Cola Company (NYSE:KO) spent $15 million to buy the ZICO Coconut water brand and a year later, PepsiCo, Inc (NYSE:PEP) bought O.N.E. Coconut water brand in order to have this consumer favorite beverage under its belt.
But Vita Coco, a New York based coconut water company has been on the top in this new sizzling beverage domain. They get coconuts from Brazil and this is regarded as the main factor of their major marketing success. In an interview given to Bloomberg, President of Vita Coco, Jeff Popkin, said that his company is doing great in business and placing itself as a Brazilian bran in the market.
“Well as a US company doing business in Brazil, there is a tremendous benefit to try to capture the spirit of Brazil, as our brand is positioned as a coconut water in the space as a Brazilian brand, truly born on the beaches of Brazil,” said Popkin.
Vita Coco is really experiencing huge elevation in their revenue. In 2009, Vita Coco had $20 million revenues which jumped to $300 million in 2014.
Though the company got into a lawsuit on the accusations that it’s falsely advertising the health benefits of Coconut water, experts still see huge future prospects for Vita Coco if it maintains the current quality and pace.