Connect with us

News

Coconut Water – The Multi Million Dollar Beverage For Investors

Joel Brown (Founder of Addicted2Success.com)

Published

on

Rihanna-Vita-Coconut Water


By now, you’ve probably noticed that Vita Coco, Zico and O.N.E. are on the shelves of grocery and health food stores across the U.S. Coconut water has taken on the status of a “super-hydrating” miracle drink, and the major brands have celebrities like Rihanna, Katy Perry and Madonna promoting coconut water.

In only 5 years this beverage has turned into a Multi Million Dollar product for its producers, lets take a look into the coconut water trend, as popularity grows this here may be a beverage to invest in.

For thousands of years, farmers, hunters, warriors and general laborers of the tropics have known of the coconut’s hydration abilities:

For thousands of years, farmers, hunters, warriors and general laborers of the tropics have known of the coconut's hydration abilities

Coconut juice contains the electrolytes — potassium, magnesium, sodium, calcium, and phosphorous — needed for proper hydration.

The juice has also been used for medical purposes: doctors in the tropics used coconut water as IV fluid when saline wasn’t available.

 

A few centuries later, Vita Coco’s founders got the idea for coconut water after meeting two Brazilian women in a Manhattan bar

A few centuries later, Vita Coco's founders got the idea for coconut water after meeting two Brazilian women in a Manhattan bar

Vita Coco founders Ira Liran and Michael Kirban asked the women what they missed about home, the Brazilians replied “coconut water.”

That was in February 2003. When Kirban went to visit his now-wife in Brazil a few months later, he did some research on coconut water.

Vita Coco officially launched in 2004 and is one of the most dominant market players, with products in 17,000 stores nationally.

 

Vita Coco chose New York’s immigrant-heavy population as the drink’s entry point

Vita Coco chose New York's immigrant-heavy population as the drink's entry point

Liran and Kirban visited Brazil several times to map out their strategy to bring Vita Coco to New York.

They also capitalized on the growing interest in “functional beverages” — drinks that do something positive for you.

 

Zico, and later O.N.E., emerged as the two biggest competitors to Vita Coco, and now all three help each other while they jockey for market share

Zico, and later O.N.E., emerged as the two biggest competitors to Vita Coco, and now all three help each other while they jockey for market share

The three brands have all created a demand for coconut water.

O.N.E. founder Rodrigo Velso grew up drinking coconut water in Brazil and launched his product via Whole Foods in 2006. Zico founder Mark Rampolla got hooked on coconut juice while serving in the Peace Corps in Central America. He brought his product to market in 2004.

 

And the trend is still catching on: Naked came out with its own version of coconut water in 2010. 


Coconut water makers say it’s better for you than energy drinks

Coconut water makers say it's better for you than energy drinks

Plenty of sports drinks, like Gatorade, are loaded with electrolytes. What gives coconut water a natural advantage is that it’s fat-free, cholesterol-free, and low in calories. Its electrolyte levels are through the roof (in fact, Vita Coco claims to have “15 times the electrolytes found in sports drinks”), with a potassium level equal to more than two bananas per 11-ounce serving. And yet coconut water is still just 95 percent water.

This makes coconut water a “more natural” alternative to sports drinks, energy drinks, and sodas.

 

Another key selling point for the product is that it keeps you young

Another key selling point for the product is that it keeps you young

Coconut water is expensive: it’s $2 per bottle. Manufacturers justify the cost by claiming that the electrolytes and vitamins found in coconut water improve circulation, slow the ageing process, fight viruses, boost immunity and reduce the risk of stroke, heart disease and cancer.

 

It only took five years for coconut water to establish itself as a multi-million-dollar industry

It only took five years for coconut water to establish itself as a multi-million-dollar industry

A Merill Lynch analysis in 2009 showed that coconut water went from virtually zero sales in 2004 to $30 to $35 million annually in five years.

 

The coconut water trend is part of a broader movement toward “naturally healthy” products — which is why Pepsi and Coca Cola bought stakes in O.N.E. and Zico

The coconut water trend is part of a broader movement toward

“Naturally healthy” products raked in $223 billion in global sales in 2009, with naturally healthy beverages (like Naked Juice) making up 63% of that category.

In 2010, PepsiCo bought out a majority stake in O.N.E., the Brazilian-based company, while Coca-Cola took a stake in Zico, based in California. These investments will helped coconut water move from warehouse distribution to direct store delivery, a huge step in becoming a major player in the U.S. beverage market.

 

Celebrities like Rihanna have promoted or invested in the major coconut water brands

Celebrities like Rihanna have promoted or invested in the major coconut water brands

The list of celebrity spokesmen, investors or simply public drinkers is a long one: Madonna, Matthew McConaughey, and Demi Moore are Vita Coco investors, Rihanna is a Vita Coco spokesperson, Molly Sims works for Zico and celebrities like Kim Kardashian, Anne Hathaway, Nicole Scherzinger, Nick Cannon and Brooke Shields have all been seen with a coconut water drink around town.

 

Although recently, fitness experts have started backing away from the product

Although recently, fitness experts have started backing away from the product

Despite its popularity, fitness experts and enthusiasts are realizing that the most important element in a sports drink — protein — is noticeably absent from coconut water, which only has a couple grams per serving when 15 to 17 grams would be optimal. A sufficient amount of sodium is also lacking.

 

In fact, Vita Coco and O.N.E. are now under fire for lying about the nutritional value of their product

In fact, Vita Coco and O.N.E. are now under fire for lying about the nutritional value of their product

Vita Coco manufacturers face a $5 million class action lawsuit filed last month from consumers who claim the products “super-hydrating” benefits are false. A false advertising suit was also brought against O.N.E.

According to Thomson Reuters:
“The lawsuits, brought by Kevin Shenkman on behalf of coconut water consumers, were spurred by a new study by ConsumerLab.com that tested the contents of three brands of coconut water: Vita Coco, O.N.E. and Zico. Only one of the drinks, Zico, delivered on its nutritional claims in the study. The other two had “far fewer” electrolytes than claimed, according to the report issued last week, with considerably less sodium and magnesium than the amounts listed on their nutrition labels.”

While coconut water may not be a miracle drink, it still fills grocery shelves nationwide

While coconut water may not be a miracle drink, it still fills grocery shelves nationwide

As is the case with many health food products, coconut water is likely no more nutritious than fresh fruit and water.

But with continued aggressive branding and investment by big-name companies, expect coconut water to gain global market share in the coming years.

Article By: Eric Goldschein and Aimee Groth

I am the the Founder of Addicted2Success.com and I am so grateful you're here to be part of this awesome community. I love connecting with people who have a passion for Entrepreneurship, Self Development & Achieving Success. I started this website with the intention of educating and inspiring likeminded people to always strive for success no matter what their circumstances.I'm proud to say through my podcast and through this website we have impacted over 100 million lives in the last 6 and a half years.

Advertisement
2 Comments

2 Comments

  1. Ed Hartz

    Jul 28, 2012 at 9:01 pm

    If you really want a boost, just drink fresh green coconuts and not the ones with the green husk removed. Anyone interested to work with a real fresh, unprocessed coconut water company, call Noelani Beverage & Coconut Water Company. Noelani in Hawaiian means “dew from the Heavens.” Aloha, Ed

  2. Deb

    Oct 4, 2011 at 5:34 pm

    I grew up in a Caribbean country and know first hand the nutritional value of coconut water. We picked it off the trees or got it from vendors in the market. It was and is considered a powerful kidney cleansing agent and certainly was more nutritional than drinking sodas or other beverages high in sugar.

Leave a Reply

Your email address will not be published. Required fields are marked *

News

The Top 21 Richest Celebrity Couples In The World

Joel Brown (Founder of Addicted2Success.com)

Published

on

Jay-Z Beyonce richest couple

This years list of the worlds richest celebrity couples is pretty impressive. With a collective net worth of $4.1 Billion between these 21 cashed up couples there is more than enough money for them to buy a few Ambani skyscraper homes and all move in together. (more…)

Continue Reading

News

Think & Grow Rich: The Legacy Film

Joel Brown (Founder of Addicted2Success.com)

Published

on

Think-&-Grow-Rich-The-Legacy-Movie

We have some incredible news for you. For the first time in history, the Napoleon Hill Foundation has granted exclusive rights to Think Rich Films to transform the book, Think and Grow Rich, into a motion picture film, one that will impact another 100 million lives worldwide.

I am excited to announce that I will be featuring in this film alongside Bob Proctor, Lewis Howes, Rob Dyrdek, Barbara Corcoran, Grant Cardone, Darren Hardy, John Lee Dumas and many more incredible thought leaders.

Here’s the new teaser trailer for the film:

As true fans of Think and Grow Rich, we worked for over 3 years, pouring our hearts and souls into creating a film that is a pure representation of the Legacy of this life changing literary masterpiece.

Our guiding light along the way was to remain true to the content and in doing so spark the flame that will ignite a global movement with a powerful message.

The message is that anyone can succeed irrespective of their circumstances. Human potential is not  predicated by age, race, gender, education, finance or any other perceived disadvantages.

Join us in Los Angeles on October 14, 2017 for the historical World Premier of Think and Grow Rich: The Legacy a film based on Napoleon Hill’s best selling book, Think and Grow Rich.

 

Join Us For The Premiere

Saturday October 14, 2017 at Regal L.A. LIVE: A Barco Innovation Center

Location: 1000 W Olympic Blvd, Los Angeles CA 90015

Red Carpet: 5:30pm – 6:00pm

Film Kick Off with Producers & Director: 6:20pm – 6:30pm

Film Showing: 6:30pm – 8:00pm

Q & A with Cast: 8:00pm – 8:30pm

 

PLUS… a panel discussion with the cast hosted by Gerard Adams

Attire: Formal/Semi Formal
VIP Private After Party Katsuya at L.A. LIVE: 9:00pm to Midnight

This exclusive VIP event following the Premiere will be private to cast members, producers, director and key individuals who made this film possible.

Hors d’oeuvres & Beverages will be provided and hosted by Katsuya.

 

Click the button above and scroll to the bottom of the next page to get your General or VIP tickets

 

The heartbeat of Think and Grow Rich: The Legacy

think & grow rich
 

A glimpse of what you will see..

A glimpse of what you will see.. “Faith is going to give you the ability to continue through the highs and lows…” – Rob Dyrdek

 

“I remember being 24, new in business and being stopped dead reading the book…” – Barbara Corcoran

 

“Follow your dreams! Whether you achieve them or not is irrelevant…” – Lewis Howes

 

Click the button above and scroll to the bottom of the next page to get your General or VIP tickets

 

Continue Reading

News

The Top 10 Highest Paid Music Artists In The World

Published

on

The Top 10 Highest Paid Music Artists In The World

Forbes has just put out the list for highest paid musicians for 2015.

These music artists have created some very catchy yet inspiring songs this year. Music is the one thing that creates an “escape” for most people. It can inspire you, make you happy, pick you up when you’re down, etc. (more…)

Continue Reading

News

The Top 50 Highest Paid Celebrities of 2015

Published

on

The Top 50 Highest Paid Celebrities of 2015

Forbes ranked the most successful celebrities of 2015! The list is quite stunning!

From movie actors and actresses to pro athletes, this list has definitely brought together some of the most inspirational people in the entertainment world today. (more…)

Continue Reading

Trending