In an era dominated by the millennials, the demand for certain goods and services have dropped as millennials are known to have a more distinct preference compared to previous generations. As a result, suppliers are attempting to come up with new products that are in compliance with the effective demand. Surveys have found that 42 percent of the respondents seek after health and nutrition in their consumption of food and beverages. Hence, PepsiCo, the main company of several brands such as Pepsi, Tropicana and Gatorade, to name a few, has introduced their new beverage. Bubly, the brand of the new sparkling water, was debuted just last month as the company wishes to exploit the $1.2 billion industry behind sparkling water.
Another one of the most recent companies to undertake this change is Coca-Cola, the long-term consumers’ choice of soda. The negative effects of the consumption of Coca-Cola have become public knowledge for some time now. For this reason, they are pleased to announce the debut of their new beverage, which is a healthier alternative to their original soda. Zico is the name of the new coconut water introduced by the Coca-Cola company. This beverage is the complete opposite of Coca-Cola in terms of the sugar content.
“Coconut water is – and is perceived to be – a better-for-you product,” says Tom Larsen, the general manager of Zico in an interview with Business Insider.
As consumers, we are well aware of the hesitation that comes along with trying new things. This is evidently another problem with Zico, as Meghan Seidner, the Vice President of Zico’s marketing department admits, “The taste can be a bit polarizing for some.” Seidner proceeds to divulge the fact that their statistics have shown that six to seven coconut water have to be consumed before consumers can take a liking to it. This is clearly a hindrance because more often than not, consumers are not willing to spend their money on items that they dislike after the first try – how many people would purchase something they barely like more than three times?
Technavio, a top-rank market-research firm believes that the market for coconut water worldwide will rise from an estimate of $2 billion to over $7 billion within five years. It is believed that in the United States alone, the market for coconut water will reach a sum of $1.5 billion in the next two years. Nonetheless, there is a tremendous number of companies supplying these beverages, which means that the competition is fierce. As a new product, it is no doubt challenging to compete against other brands that have already established a brand loyalty.
Zico have concentrated their efforts in the invention of new flavors recently since the company has, so far, decided that the best approach to counter the aforementioned problem is by allowing consumers to have more options and in turn, hope that they get captivated by one. Aside from the conventional chocolate flavor, Zico also offers jalapeño-mango and watermelon-raspberry flavored coconut water. As of last Friday, Zico debuted their latest addition to the health-conscious beverage series. This selling point of this new coconut water lies behind its concoction of an organic juice and is given the name ZICOCocoLixir.
ZICOCocoLixir was produced because market-researchers have categorized coconut water and cold-press juices as the two beverages with a fast-expanding market. They offer a variety of vegetable-based juices with funny labels using wordplay such as Unbe-leaf-able and Turn Up the Beet.
All things considered, nevertheless, Larsen and Seidner have both stood out to suggest that the endorsement of Coca-Cola as the parent company to these beverages will serve to distinguish them from minor brands.
“We’re going to be a total beverage company across the globe,” the company’s plan for the future reiterated by Larsen, after James Quincy, the CEO of Coca-Cola.
Featured Image via flickr/ Mike Mozart