As a growing phenomenon, coconut water is known to be the most natural drink that keeps you hydrated and is loaded with electrolytes. Vita Coco is the leading coconut water brand in the United States with a revenue of $400 million out of the $100 billion revenue of nonalcoholic drinks. After only seven shorts years this company had expanded world wide and is in close competition with Zico, the second leading coconut water brand.
Coca-Cola has gone public about their recent investments in Zico to expand their products, although they have not announced the amount they are investing they assure that it reaches Zico's revenues. While Vita Coco remains untouched, PepsiCo Inc. has ifound themselves investing in the third coconut water company O.N.E.
Rumor is said that coconut water sales sky rocketed after Rihanna was featured on a billboard for the water. The billboard read "Hydrate naturally from a tree, not a lab" to express the artificial ingredients found in sports drinks such as Gatorade.
It seems that Coca-Cola and PepsiCo have fiercely been competing to be the largest drink market across the globe. With coconut water creating a new market, what actions do you think the two companies will take in order to be #1 in coconut water sales?
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