Hailing from Kollam in south Kerala, Jacob Thundil did not have to think twice before venturing into the tender coconut water business. Having spent his childhood in the coconut palm district, he knew it wouldn’t disappoint him. It is just an irony that he had to start and nourish his business from the United Kingdom rather than his hometown.
Cocofina, the brand promoted by Thundil since 2005, sells in more than 20 countries at 3,000 retailers.
?Inspiration came when I was in a beach in Brazil. Many people think for an idea and I was thinking of one when I was given a coconut in my hands in the beach by a vendor. One of the things I was missing in my life was tender coconut water when I came to the UK,? he said. His brand has been growing around 300 % every year and listed with the world’s largest heath food distributors. ?The global coconut water market is worth $400 million. It has gone from nothing to that in five years. Consumers view it as a healthy product drink to improve weight loss, improve physical appearance and for rehydration,? Jacob added. The clear, slightly sweet liquid inside coconuts, is pitched as a natural rehydration tool rich in electrolytes, particularly potassium. Coconut water contains more potassium than a banana and was used for emergency plasma transfusions during World War II.
While the benefits of tender coconut water has been known for hundreds of years, large-scale commercial use started only recently in 2004. Coconut water rose to prominence when cola majors picked up stake in tender coconut water producers. Coca Cola owns a majority stake in Zico, which was was one of the three original coconut water brands, along with O.N.E. and Vita Coco. Pepsi has stakes in O.N.E and the market has been doubling since 2004, while the total market of carbonated soft drinks (CSD) showing negative growth for the past few years. ?Cola majors are betting big on coconut water and it will rapidly grow in size in the coming days. With consumers focused more on the health aspects of CSD, tender coconut water is likely to gain acceptance as a healthier alternative,? TK Jose, chairman of the state-run Coconut Development Board (CDB) said.
However, the coconut water sector faces many challenges, the most important is the inconsistency of the raw material. All coconuts do not taste the same. ?We source water from other countries because of quality issues faced in India. The technology and quality of Indian plants is not up to EU standards,? Thundil said. But Jose feels India stands a good chance in exporting coconut water to major producers. India is a leading coconut producer of the world with an annual production of more than 15-17 billion nuts. Four southern states together account for 90% of the total production in the country.
?Actually, India was the first country to process and bottle tender coconut water in 1997. Technology has improved and now the major brands source coconut water from India. There are nearly 20 units that process around 2 lakh coconuts on a daily basis in India,? Jose said. The water content in the Indian tender coconut is almost 50% low when compared to other origins. The board is now trying to promote coconut trees that are dwarf and well suited for processing of tender coconut, he added.