club catalyst. Will you have a cup of heavenly dew?

Over the New Year weekend, my wife and I set off to Alibaug, a scenic coastal town located south of Mumbai. To get to Alibaug, we boarded a catamaran ferry from the Gateway of India to Mandwa, and thereon took a bus ride to Alibaug town. This is a wonderful journey, but what met us at Alibaug was even more refreshing.

Immediately after a delicious seafood lunch at a local restaurant in Alibaug, the owner of the hotel persuaded us to eat his special dessert, made of coconut water. We were recovering from the splendid spread of fish, mussels and oyster, but went ahead with this recommendation. The dessert arrived. It was branded very simply “real coconut jelly”, made of fresh young coconut water, with pieces of coconut flesh embedded. It was the most uniquely delicious dessert I have eaten – subtle tones of coconut, mildly sweet, yet remarkably light. In addition, it served as an excellent digestive, because it appears to have nicely settled the huge quantities I ate.

On the beach, in the air Later that afternoon, at the beautiful Varsoli beach on the outskirts of Alibaug, we drank fresh tender coconut water, even as we looked out at the sparkling white sand and deep blue sea. The vendor effortlessly split open the coconut with his sharp knife, and we sipped the water through a straw. It was so sweet and rejuvenating in the afternoon sun, I immediately asked for a second coconut.

All this reminded me of another recent brush with tender coconut water, which I am encountering ever so frequently these days. This was on an international flight to Seattle, where the stewardess asked us for our choice of welcome drink. Normally, the choices offered are champagne and fruit juice. This time, she said: “Sir, will you have champagne, or pomegranate juice, or coconut water?” I was pleasantly surprised to see several passengers around me preferring that to the pricey Dom Perignon. Later, I read that some airlines have recommended flyers drink lots of coconut water to keep themselves well hydrated. In India, Vistara Airlines and Jet Airways also offer it as a welcome drink.

Amazing growth The final coconut on my back was a visit to a departmental store in the US. The shelf for brands of coconut water stretched virtually as long as the shelf for fruit juices, certainly not the case a few years ago. Multiple brands jostled for space, amongst them, brands such as Vita Coco, Taste Nirvana and Harmless Harvest, all of which offer natural coconut water. Beverage giants Coke and Pepsi have both invested in this movement with their brands Zico, O.N.E., and Kero Coco.

I dug out some amazing data: Volumes of coconut water drunk by consumers in the US have increased from less than 5 lakh litres in 2004 to nearly 200 million litres in 2014. Imagine, that is a 400-fold increase within ten years! Worldwide, it is estimated that nearly 700 million litres of branded coconut water have been consumed in 2015. Of course this does not capture the millions of unbranded Indian consumption moments such as my own on Varsoli beach.

Why has this drink, familiar for years in India, suddenly become such a rage that it is even preferred over champagne? Fundamentally, I think the key reason is that this single drink caters to a wide variety of consumer needs.

Most natural So many consumers are turning away from carbonated soft drinks because these are perceived to be artificial, high on empty calories, and unhealthy. Coconut water is seen by ordinary consumers as a delicious, natural alternative to these drinks.

The need to consume natural foods and beverages in preference to processed or synthetic products is very large, and cuts across many consumer segments. Also, many consumers believe coconut water quenches thirst much more effectively than fruit juice. No wonder millions of consumers worldwide reach out for coconut water as their preferred thirst-quencher.

Multi-nutritional As consumers read more and learn more about coconut water, they find out it contains numerous essential nutrients. Some of the nutrients, such as riboflavin, niacin and folates boost the immune system. Others help moderate sugar absorption and improve insulin sensitivity. These numerous nutritional benefits are also the very reason why Hawaiians refer to coconut water as ‘noelani’, which means dew from the heavens.

Super-hydrator Coconut water is also very effective at relieving dehydration and heatstroke because of the essential electrolytes it contains. This is also why it has been dubbed “nature’s Gatorade”, though in my view, such terminology does gross injustice to coconut water which is the original hydrator, going back thousands of years before Gatorade was even conceived of. In fact, coconut water does not have any of the chemical additives found in many commercial sports drinks, and has lesser sugar than these drinks.

Exotic and tropical To many consumers in developed countries in Europe and the US, which are not natural homes of this fruit, coconut water conveys many exotic, tropical hues and emotions – the Hawaiian and Caribbean sand and surf, palm-fringed coasts of Thailand, beautiful backwaters of Kerala. Drinking coconut water can mentally transport you to these beaches and islands, which add a virtual touch of calm and space to the moment, wherever and whenever.

Niche needs Finally, there are specific niche needs that coconut water fulfils, and therefore it appeals to these specific segments of consumers. For instance, coconut water is isotonic with human plasma, and can therefore be used by doctors in extreme emergencies for intravenous administration to save human lives. There is a popular view that pregnant women should consume coconut water as a tonic during pregrancy so that their breast milk will later provide the nutrients required for a healthy baby. Coconut water is also known to have anti-ageing properties, because of the cytokinins it contains. I have even heard that coconut water is a good hangover remedy, though this cannot be classified as a niche need after last fortnight’s Christmas and New Year’s revelry.

Because of these multiple consumer needs that coconut water fulfils, global potential will remain very high. In India too, brands such as Dabur Real Activ, Cocojal and Tendo have already made their first moves in this area. But I think this is just the beginning.

Over the next few years, how can our marketers reimagine this product category? For instance, can we think of skin creams which have coconut water as a key ingredient? What about toothpaste which uses coconut water as a special ingredient, for its mineral properties? How about cakes or chocolates or cookies infused with coconut water or tender coconut flesh? Coconut water-flavoured craft beer, perhaps? Sip on these thoughts, and imagine this new world.

The author acknowledges valuable inputs from Kashica Bhagat, Tata Sons, in the writing of this article.

(HARISH BHAT, MEMBER, GROUP EXECUTIVE COUNCIL, TATA SONS)

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