The Next Beverage Battle: Coconut Water

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

A coconut water war is about to hit New York.


Within the shell of the young coconut lies a natural sports drink boasting an electrolyte content similar to human blood, more potassium than a banana, no cholesterol, and fewer calories and carbs than Gatorade.


Up to two months ago, the only way a New Yorker could get the full nutritional benefits was to stick a straw in a coconut, preferably on a tropical beach. But two local companies, Vita Coco and ZICO, using a similar packaging technique to preserve the health benefits, will supply coconut water to a combined total of more than 230 New York City exercise studios, supermarkets, health food stores, and high-end delis by the end of the week.


“I was taken aback by what they’re doing,” a senior partner at Cascadia Consulting, Bill Sipper, said. “It’s a great, light, refreshing beverage – a unique package.”


But, he warned. “There’s only room for one.”


Coconut water, the liquid inside the fruit before the fatty nut is formed, is consumed in 85 countries and renown for healing stomach ailments, easing menstrual pains, and preventing dehydration. During World War II Japanese and British troops used it as a plasma replacement because it is isotonic and sterile inside the nut. But despite its proven health benefits and pleasant, mild flavor, importation to America has been limited mostly to canned production and using methods that eliminate nutrients and flavor.


Responding to complaints by Caribbean nations about the deflated coconut industry, Morton Satin, then a chief of agricultural industry development at the United Nations Food and Agricultural Organization, invented a micro-filtration packaging method in 2000.


“We’re used to coconut flavor you get in pina colada and that’s the typical coconut oil flavor, but there’s no oil in the water…and it contains a mineral mix that is very similar in its overall makeup to your plasma,” Mr. Satin said. “The idea was to get that into a form that would be shelf stable.”


After he released the patent, he said, there was interest from major companies, but they were stymied by the challenges of opening up a new market. “They’re too large to be intimately involved with the consumer so they’re not driven by consumer demand,” Mr. Satin said. Smaller companies, he added, “are just starting now. It’s got tremendous potential.”


ZICO and Vita Coco rely on Brazilian coconuts packaged with Tetra Pak, the system used by European milk giant Parmalat. The aseptic material is flushed with hydrogen peroxide and passed through ultra-high temperatures to sterilize and preserve the liquid.


The result is a nutrient-packed product with a shelf life of more than half a year.


ZICO, which was launched in New York two months ago, is now at 30 locations including Fairway, Citarella, and Bikram Yoga Studios.


“If companies are manufacturing waters to contain all these vitamins, why not just bring coconut water to the U.S. – it’s got all these vitamins and electrolytes occurring naturally,” said a spokesman for ZICO, Jonathan Osmundsen.


In addition to stores, the company has promoted the juice at bars where the product is mixed with rum, gin, and scotch.


Vita Coco, newer to the market, launched three weeks ago and will be in 200 health food stores, supermarkets, and high-end delis by the end of the week.


“We spent the past two weeks, just me, my partner, and one of my sales guys, slinging coconut water around the city,” said Mike Kirban, 29, who has partnered with Ira Liran, 26, to market Vita Coco out of DUMBO.


Both are marketing the drink primarily to the health-conscious consumer and pairing the natural variety with fruit combinations, such as mango, passion fruit, and peach. ZICO, based in Connecticut, calls itself 99.9% natural, with a preservative to maintain the clear color. Vita Coco, the newer entrant to the market, prides on being 100% natural.


At Bikram Yoga, where sweat is induced with 100-degree-plus temperatures, ZICO’s coconut water is slowly gaining ground as a natural hydrant.


“We have some students who tell us they are dreaming about it in class,” said the general manager of Midtown Bikram, Bridgett Ane Lawrence. “I love it…It seems to be going straight to my muscles, it’s hydrating, and it tastes good.”


The beverage consultant, Mr. Sipper, is equally impressed with both products, but said the beverage market even as it has room for new super premium entrants, with about 5,000 brands entering every year, is extremely competitive: “Either you know what you’re doing in this industry or you die.”


The New York Sun

© 2025 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  Create a free account

or
By continuing you agree to our Privacy Policy and Terms of Use