Naturally Sweet: Coca-Cola & PepsiCo Invest in Coconut Water

Coca-Cola and PepsiCo are trying something new again this year.

First we had product reformulations with cane sugar seen in Pepsi Raw, Pepsi Throwback, and Mountain Dew Throwback.

We also saw both Coca-Cola and PepsiCo purchase stevia sweetener brands, Truvia and PureVia, respectively.

In keeping with the spirit of competition and their promise to investors, PepsiCo and Coca-Cola are now getting into the coconut water market, reported in a recent article by FoodBusinessNews.net.

Although we've seen those obscure containers at the supermarket, coconut water hasn't really hit the mainstream.

But now that two of the nation's largest beverage companies are adding the naturally hydrating and vitamin-rich nectar to their "Midas" list of products, that is about to change.

In mid-August, PepsiCo bought Amacoco, Brazil's largest coconut water producer.

And just this week, Coca-Cola made a significant investment ($15 million to be exact) in Zico Beverages, L.L.C., a Hermosa Beach, California, based provider of Zico Pure Premium Coconut Water.

Coconut water has been hailed by Zico as a natural sports drink, based on the natural sugar content and abundance of potassium, magnesium and even calcium.

Both Coca-Cola and PepsiCo certainly have the brand recognition and marketing aptitude to benefit the market for coconut water in the United States.

According to the article, the investment in Zico was led by Coca-Cola North America's Venturing and Emerging Brands business unit (V.E.B.).

President and general manager, Deryck van Rensburg, said,

"V.E.B. continues to seek out burgeoning brands that have the potential to change the way consumers look at beverages.

"Combining the natural goodness of Zico... and the brand building expertise of W.E.B. certainly makes for an innovative partnership."

As promised by both companies in press releases this year, Coca-Cola and PepsiCo are making good on their plans for innovation and expansion to maintain growth in the beverage arena, which is great news for food ingredients distributors.

And because no one likes to buy salt or sugar for no reason, it will be interesting to see what new products enter the market as a result of these two investments.