Coconut Water Brand Takes On The Energy Drink Industry
The coconut water craze is no secret. The industry as a whole has seen a meteoric rise with nearly $800 million in U.S. sales in 2015. Coconut water is expected to be a $2 billion industry by 2019. While this pales in comparison to the $10 billion and growing energy drink industry that has seen Monster Beverage Corporation (NASDAQ: MNST) become one of the best performing stocks of the decade, it is still significant.
The energy drink industry continues to grow as well, and its involvement in the action-sports environment has been an important outlet for marketing and brand awareness for Red Bull, Monster and Rockstar brands. One new startup attempts to change the landscape of action sports, with an athlete-owned coconut water brand called Villager.
Many top action-sports athletes have either left their current contracts or refrained from signing with energy drink companies to sign with the Villager brand. This is partly to due the fact that the athletes want to endorse products they actually consume, coupled with the desire to promote a healthier product. As health and wellness continue to gain traction, the company is capitalizing on the trend's momentum.
Professional surfer Coco Ho told Inertia, "I never rode for an energy drink simply because I don't drink them. It would be false advertising." Several endorsers for Monster, Rockstar and Red Bull have left their contracts to sign with Villager for similar reasons.
While Villager says it is not taking direct aim at the energy drink industry, its endorsers have spoken out about the dangers of energy drinks and promoting them to kids. The company has secured 26 action-sports endorsers. "It's easy to get stuck in the status quo. I'm happy to step aside and be a part of a meaningful brand that makes healthy products. It's a much better representation of what I actually buy and consume," said Pat Moore, professional snowboarder.
The product is set to launch in the fall and will be available nationwide.
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