Coca-Cola South Pacific has launched ZICO, a not-from-concentrate coconut water product into Australia a day after its parent company reported falling profits on the back of declining soft drink volumes.
The Atlanta-based company announced a plan to cut $US3 billion in annual expenses by 2019 after its sales fell to $US11.98 billion in the quarter, down from $US12 billion a year earlier thanks to slow international growth.
Coca-Cola South Pacific's ZICO launch indicates a healthy new direction for the company. The latest research shows carbonated drinks are on the wane in Australia, but coconut water is among the beverage categories that are gaining momentum.
According to Roy Morgan Research, 71 per cent of the population drank at least one soft drink in any given four weeks back in 2003, but this has fallen to just 52 per cent by June 2014.
Innova Market Insights has found that coconut featured in over 6 per cent of global juice drinks launches in 2014, up from 4.5 per cent in the previous 12-month period and from less than 2 per cent five years ago.
“With sales of traditional carbonates and still drinks relatively static in many markets, the industry appears to be turning to coconut water, which seems well placed for the task of driving growth with its exotic image, unusual flavour and natural hydration properties,” Lu Ann Williams, director of innovation at Innova Market Insights notes.
ZICO has likewise seen great results in international markets, according to its brand manager, Ramona Spiteri.
The new beverage has been developed with health conscious consumers in mind and it contains electrolytes that support hydration, according to Spiteri.
It will be sold in Coles from November with expansion to other retailers from Q1 2015.
Coca-Cola South Pacific's launch of ZICO coconut water indicates a healthy new direction for the company.
