Coca-Cola announced the investment in Zico Beverages LLC on 1 September. Coca-Cola declined to say how much its investment was worth, other than to say it was a stake of less than 20%.
“It’s an exciting new category and an exciting new brand in the category,” said Coca-Cola spokesman Scott Williamson.
California-based Zico (pronounced ZEE-ko) said in a statement that it has received a $15m investment from partners including Coca-Cola, beverage entrepreneurs, distributors, celebrities and others, so Coca-Cola’s stake was worth less than that.
The move means another major drink maker is eyeing coconut water as it looks to boost sales. Last month, PepsiCo announced it was buying Brazil’s biggest coconut water company, Amacoco Nordeste and Amacoco Sudeste.
Coconut water – the fat-free, potassium-rich liquid inside young, green coconuts – is popular in other countries and is just starting to catch on in the US. According to a report from Merrill Lynch, sales in Brazil are worth more than $300m a year, while sales in the US are about a tenth of that. Coconut water is not to be confused with coconut milk, the liquid that comes from pressed coconut meat.
Source: The Canadian Press
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