How
to build coconuts’ health and wellness credentials
Coconut's health and wellness remit extends
far beyond yielding pretty white flakes for muesli and snack bars. Euromonitor
International takes a look at three key areas with plenty of room for increased
activity: beverages, oils and the food intolerance category.
Coconut water – a massive hit in Brazil
One of the most promising contenders among
healthy coconut products is coconut water extracted from unripe (green)
coconuts. Coconut water is a popular and refreshing beverage consumed widely in
tropical countries, where people drink it straight from its green shell,
freshly cracked open for them by a street vendor.
Coconut water is a massive hit in Brazil,
enjoyed by many, for instance as a revitalising recovery drink after exercising
on the beach, where the beverage is sold from ubiquitous local kiosks. Coconut
water is packed full of electrolyte minerals, such as potassium, magnesium,
calcium and phosphorus, which makes it perfect for re-hydration. Brazilian
doctors commonly recommend it to mothers as the ideal drink to protect their
children from dehydration in the hot weather.
The overwhelming popularity of coconut
water is also reflected in Brazil's packaged juice market. The 100% juice
sector, which achieved retail volume sales of close to 109 million litres in
2008, was dominated by coconut water, which accounted for a 53% share of sales,
up from just 21% in 2003.
Amacoco Água de Côco da Amazônia Ltda is
the clear leader in 100% juice, with a 41% market share (by volume) claimed by
its Kero-coco coconut water brand in 2008. The company operates partnerships
with Coca-Cola bottlers and distributors, which are licensed to produce
Kero-coco products. Amacoco also supplies large foodservice chains such as
McDonald's, affording it nationwide availability.
The availability of packaged coconut water
is by no means restricted to coconut-growing countries. For example, Los
Angeles-based O.N.E Natural Experience markets its O.N.E Coconut Water as being
fresh tasting and high in nutrients. The claim “high in potassium” appears on
the front of the product's stylish 330ml Tetra Pak container. The company points
out that its product has isotonic properties and contains 15 times the amount
of potassium found in regular sports drinks, minus the additives. It also
highlights the special suitability of O.N.E. Coconut Water for nursing mothers,
infants and children.
Consumer education and precise targeting the keys to success
At present, coconut water remains a niche
product outside the tropics. Consumers in Europe and North America simply have
not had sufficient exposure to coconut water and remain unaware of its health
benefits. This is a great shame, considering these regions' thirst for
naturally healthy beverages.
There are several major obstacles impeding
consumer acceptance which need to be tackled before mass-market appeal can be
achieved. First of all, there is widespread consumer confusion concerning the
difference between coconut water and coconut milk, which is a white creamy
liquid made from the high-in-fat coconut meat. Consequently, many consumers
believe coconut water to be high in fat and calories.
Another common misconception is that
coconut water has an unpleasant taste. This arises from the fact that most
consumers living in temperate regions are only familiar with the often
foul-tasting pool of liquid found in the centre of ripe, brown coconuts.
However, this musty fluid has nothing in common, in terms of taste, with the
clear, fresh-tasting water extracted from the green fruit. The best way to
overcome these two hurdles is by allowing consumers to sample the product.
In addition to raising coconut water's
profile as a naturally healthy beverage, what is also needed in order to bring
coconut water to a wider audience is to employ a more specific targeting
strategy. Products need to be clearly positioned, eg as a natural sports drink.
This should appeal greatly to physically active females, who are looking for
natural alternatives to sugar-laden (or artificially-sweetened), garishly
coloured sports drinks, and also to their male counterparts, who are keen to
avoid additives. However, it may be wise to target these two groups with
different packaging and advertising strategies.
Another key positioning is as a healthy
drink for children. Coconut water is naturally sweet, but contains much less
intrinsic sugar than fruit juice. One cup (240ml) has just over 6g compared to
100% orange juice, which contains a whopping 20g of sugar. This is an important
quality for parents, who are constantly being told to reduce their children's
sugar intake.
Coconut oil – not so bad for the heart after all
Coconuts are one of the tropics' principal
oil crops. Coconut oil has a high 86% content of saturated fat, and because a
diet rich in saturated fat is thought to be a key contributory factor to the
development of cardiovascular disease, coconut oil has come in for a lot of bad
press in the past. However, recent research has done much to absolve coconut
oil from its sins.
There are different types of saturated
fatty acids, and research into these fats has shown, for example, that the
unhealthiest types are myristic and palmitic acids, which are abundant in meat
and dairy. One third of butter, for instance, is made up of those undesirable
saturated fat types. Coconut oil, on the other hand, has a 45% lauric acid
content. And although there is so far no unilateral scientific agreement on
this, it seems that lauric acid is not a killer fat, and could even be
beneficial to health. A mother's milk is high in lauric acid, it appears to
have antifungal, antiviral and anti-bacterial properties and supports a healthy
metabolism.
The one thing that is certain is that
virgin coconut oil is far better for health than processed coconut oil. Cold
pressing prevents fatty acids from oxidising, and unlike mainstream commercial
varieties used in food processing, virgin coconut oil is not hydrogenated.
Hydrogenated fats are much worse for heart health than any type of saturated
fat.
Indeed, virgin coconut oil is regarded as a
health food by many, and is very popular in the health food retail channel. For
instance, in November 2008, Planet Organic, Canada's largest natural food
retailer, listed Nutiva Organic Extra Virgin Coconut Oil (from
Californian-based Nutiva) among its top 12 best-selling brands, overall
best-selling brands, that is, not just in oils. UK importer Bamber Watson Associates
markets the Coconoil brand of virgin coconut oil as nutritious, healthy and
metabolism boosting. The company supplies its product to sports clubs including
Premiership rugby and Premier League football teams. The product is available
via mail order.
At present, virgin coconut oil is still
pretty much a specialist product, but as research into its healthy properties
progresses, and more becomes known about the health benefits of individual
saturated fatty acids, there is great potential for it to be reborn as the
healthy oil of the future.
Still room for development in food intolerance products
Another not yet very well exploited, a
health and wellness route for coconut ingredients lies in the food intolerance
sector. According to Euromonitor International data, combined global value
sales of gluten-free and lactose-free foods reached US$4.8 billion in 2008,
posting a respectable CAGR of 10% over the 2003-2008 review period.
Fortunately, the coconut can shine in both categories.
Coconuts are gluten-free and their “meat”
is perfectly suited to bakery products. We are, of course, talking macaroons.
In the UK, the Mrs Crimble's gluten-free bakery products range (from Stiletto
Foods) is available in virtually all health food shops and also through most
mainstream retailers. Coconut Macaroons, Chocolate Macaroons and Jam Coconut
Rings are among the most popular items in the Mrs Crimble's range. These
products are wheat-free, gluten-free and free of dairy ingredients, although
their packaging does carry a cautionary label stating that the products are
made in a bakery handling milk.
Coconut milk can be used to make dairy-free
products. The most widely used dairy substitute is soy milk, but many consumers
with dairy intolerances also need to avoid soy (which counts as a major
allergenic food), while others are simply looking for more variety. Coconut
delivers on both fronts, and US company Turtle Mountain Foods Inc, which claims
a 1% share of the US lactose-free foods market, has introduced some noteworthy
coconut-based offerings. In the summer of 2008 the company launched So
Delicious Coconut Milk Yogurt in six flavours, made from organic coconut milk,
cultured with six different strains of probiotic bacteria. At the same time,
Turtle Mountain Foods also launched a line of gluten-free, soy-free and
dairy-free Purely Decadent Ice Cream made with coconut milk.
The company's latest launch is a coconut
milk beverage (not a coconut water!) under its So Delicious brand, available in
the eastern US at Whole Foods Market and other natural food retailers from
March 2009, with national distribution planned for this summer.
Products such as these provide much-needed
variety for the diets of food intolerance sufferers, and now that mainstream
retailers are welcoming them onto their shelves, the market potential for more
coconut-derived offerings is obvious.
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