Keep your millions, our coconuts have staying power. That seems to be the sentiment of Michael Kirban, founder of coconut water beverage company Vita Coco. The New York Post reported that Kirban recently turned down multimillion-dollar investments from Coca-Cola Co. (NYSE:KO) and PepsiCo Inc. (NYSE:PEP).
Initially, it seems like a mistake not to want their marketing and distribution power, but it may be a good move as the beverage industry giants could stifle the maker of the trendy coconut water drinks used by
celebrities such as Halle Berry. The Post notes that budding coffee brand Planet Java and Mad River both disappeared after Coke bought them. However, after failing to woo Kirban, Coke went to a competitor,
buying 20% of Zico Beverages LLC for $15 million.
Perhaps Pepsi will take a look at One Natural Experience, or O.N.E., another coconut water seller that was established in 2005. In Manhattan, a couple of delis on Madison Avenue in the 20s had both Vita Coco and O.N.E. right next to each other. All three companies have similar packaging, but those two are particularly hard to tell apart. However, the guy behind the counter at Miss K's Italian Eatery + Cafe on 30th Street did point out there was a large version of Vita Coco, which would be cheaper than buying two individual products. Maybe Pepsi could help with the differentiation by taking out some ads for football season. Coconut water is touted as a major source of antioxidants, vitamin C and potassium, which athletes know helps prevent cramping.
The coconut people are interesting folks. On his Web site, Zico founder Mark Rampolla says he
fell in love with coconut water as a Peace Corps volunteer in Central America; and Vita Coco's Ira Liran and Kirban got
the idea to import the stuff after speaking with a couple of Brazilian girls they met at a Manhattan bar in February 2003. -
Baz HiralalGo to the NY Post story
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