Coconut water is the latest health drink craze to take a crack at the American marketplace.  Two of the world’s largest food and beverage companies have decided to dive into the coconut water trend. In September, Coca Cola Inc. bought a minority stake into the Hermosa Beach, California based coconut water company Zico (pronounced “Zee Koh”).  Though Coca Cola did not disclose the exact amount invested, it did say it was under 20%.  In August, PepsiCo bought Amacoco, the largest coconut water company in Brazil for an undisclosed amount.

Coconut water, a mainstay drink in many Latin American countries, is “made” by extracting the clear liquid from young coconuts.  This liquid is removed before the meat of the coconut can form.  The meat of a coconut is where coconut milk and oil, come from.  The milk and oil are full of fat, while coconut water is fat free and full of minerals such as potassium, calcium, phosphorous, magnesium, and sodium. It’s these electrolytes that athletes and parents appreciate as a workout drink to replace the sugar laden sports drinks that are in the marketplace today.  Coconut water looks like a lightly cloudy liquid with a slightly sweet and nutty taste. It has been purported to be an anti- aging tonic.   There have been many other claims as to the benefits of coconut water including the relief of constipation, lower blood pressure, and relief of vision problems, bladder and kidney disorders.  The benefits have proven to be so effective that the Food and Drug Administration has allowed coconut water to carry the statement that it may “reduce the risk of high blood pressure and stroke”.  Of course all of these benefits come with a price that may dampen the consumer’s enthusiasm.  The cost of a 12 pack of Zico’s coconut water costs $24.  Compare that to Coca Cola’s Dasani water 12 pack at approximately $4 and a 12 pack of Gatorade at around $13.00

Bottled water sales have dried up lately as consumers have returned to their kitchen tap to quench their thirst.   According to a recent Wall Street Journal article, U.S. sales of Coca Cola’s Dasani water fell 26%, while Pepsi’s Aquafina fell just under 14%.  On the other hand the Beverage Market Corp, a New York based brand research consulting firm, found sales of coconut water drenched its competition and doubled its sales this year to 20 million dollars.   Coconut water is seen as a new and profitable avenue for Coca Cola, Pepsi and many other companies who hope to immerse themselves in the coconut water craze.

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