Coca-Cola is a prominent and successful company that supplies beverages. However, it is looking to invest its time and money in Coconut Water and expand.
Coconut water is the new beverage that is sweeping the nation. The market for the beverage is on the rise and could create good business for the company. We already know how powerful and big a company like Coca-Cola is and this move could put them over the top against other competitors.
Untapped potential
The money that can be made with this beverage is already noted in the headline of an article on The Business Insider, written by Kate Taylor. Coconut water is a beverage to bet on as the headline in the article believes that Coca-Cola "wants to dominate a $7 billion industry." That is a lot of money to make.
The sky is the limit with the water as it could be the next big drink on the market. Plenty of new drinks come out and Coca-Cola is looking to make money, but see the potential and growth of this specific product. The company wants to "own the category with its Zico brand, debuting flavors like jalapeno-mango and a new line of coconut water with cold-press juices." Zico is the name of the company's brand of water.
So not only is the brand looking to make the investment but make their own kind of coconut water with various flavors. There is regular water that has a variety of different flavors and they are doing the same with this beverage.
Why the move?
The move seems to indicate that Coca-Cola is making this business decision for the growth and money that they can accumulate. As soda is not healthy, and water and other options are healthier. The new drink will appeal to consumers who do not drink soda and who want to be healthy. This business move will just help out the brand even more.
The move will come with some disadvantages because it could take a while for people to buy the product. People typically like buying products that they are familiar with and the other reason is that soda is still popular.
There are also many beverages that an individual can choose from.
Coconut water can have an acquired taste too. People will have to get used to the taste for sure. By reinventing different flavors the company can get people hooked on the beverage. Coconut water has long been debated for its great effects on the body. It has plenty of antioxidants and has other benefits. Overall, Coca-Cola is looking to tap into the potential by releasing their own types of coconut water.