Friday, September 25, 2009

PEPSICO NAMED ON CHINESE BLACKLIST

       Many foreign companies, including PepsiCo and Mead Johnson, from 25 countries have been blacklisted by a monthly report from the State Council watchdog in charge of product quality.
       Among the firms blacklisted, the most prominent was PepsiCo, which has its international branch based in New York. Nearly 38 tonnes of frozen concentrated orange juice that the firm allegedly imported from Louis Dreyfus Citrus Trading in Brazil in July were found with excessive years, according to the website of the General Administration of Quality Supervision, Inspection and Quarantine. Excessive yeast causes foods to spoil faster.
       The watchdog issues its report monthly and names unqualified imported goods. Though the listing has no economic impact on the firms listed, the banned products are either return-ed or destroyed.
       Mead Johnson, the plarmaceutical manufacturer based in Illinois, allegedly imported 300 kilograms of baby formula in July with substandard protein.
       Some 150 other batches of food, beverages and dosmetics from more than 20 countries were also deemed unqualified in July. A quarter of the substandard products came from the US.

Tuesday, September 22, 2009

OISHI MD TAN MAKES A SPLASH IN REAL ESTATE

       Tan Passakornnatee, Oishi Group managing director, plans several major investments in property and hospitality projects in the coming year.
       A condominium projects on Sukhumvit Road worth Bt2.5 billion will be his first investment next year, following an investment of Bt450 million to develop a luxury hotel, Villa Maroc, in Pranburi district of Prachuab Khiri Khan province three years ago. Villa Maroc will have its grand opening on Jan 1.
       Tan said he began investing his own money in property three years ago, spending between Bt2 billion and Bt3 billion to collect undeveloped land in Bangkok, Chiang Mai, Lopburi land Pranburi district.
       He said that after collecting more land, he plans to developed residences and hospitality projects from next year until 2012.
       The first project will be a condominium block worth Bt2.5 billion. Tan is in negotiations with strategic partners to develop this project.
       He has also joined with Siam Future Development to develop unused land in Chang Mai as a community mall. Investment will begin next year. Among other plans are the development of land in Lopburi province as a weekend market.
       Meanwhile, land owned by Tan on Ploenchit Road, which currently houses a Caltex petrol station, will be developed into a hotel when the petrol station's lease expires in three or four years.
       Tan also has 12 rai of land on Soi Thong Lor. Currently it is being used as a soccer field but Tan thinks it has potential for development.
       "When we decided to invest in the property business, we saw a business opportunity that was different from the kind that lures others investors, who are often drawn to in stocks or gold, or deposit their money in the bank," he said. While the returns on bank deposits are currently lower than inflation, he said, investment in land makems sense in the long term.
       "We aren't concerned solely about high return on investment. Our priorities are that our investments," he said.
       When he started to develop Villa Maroc in Pranburi, Tan spent Bt450 million on just 15 rooms. That is not a recipe for a high return on investment. But he believed in taking the long-term view that the more important goal was creating an attractive tourist destination in Pranburi district. "When tourists visit Pranburi, they have to visit Villa Maroc," was the goal.
       For his condominium project on Sukhumvit, Than is nekgotiating with a strategic partner.
       His future projects will also find require strategic partners, due to Tan's philosophyj that when it comes to business, he does not know everything.
       Tan built the Oishi Group, which manages Japanese restaurants and produces and distributes green tea under the Oishi brand, then sold a stake to beverage tycoon Charoen Siriwattanabhakdi. He still holds a stake in Oishi and remains its managing director.

Sunday, September 20, 2009

Coca-Cola still world's most valuable brand

       Consumers lost trust in brands this year as the recession deepened, according to an industry report released on Thursday, although longtime staples CocaCola and IBM retained their spots as the world's two most valuable brands.
       This is the first time the combined value of the world's top 100 brands as ranked by Interbrand, a branding agency,has fallen in the 10 years Interbrand has assessed them. The list's total value,including brands like Google Inc, Nintendo and Sony, fell 4.6% to $1.15 trillion,Interbrand estimates.
       "That says something about the environment that we're in, especially when you consider that brands are by nature less volatile than business valuations,"said Interbrand CEO Jez Frampton, who called a company's brand its most valuable asset.
       The environment a recession the likes of which the world hasn't seen for decades has eaten away at people's trust in specific brands, starting with financial companies, he said. Consumers even started to question retail brands as stores slashed prices to get sales, leading consumers to wonder about pricing, and why they had to pay so much before.
       "All of these things lead you to reevaluate the nature of the relationships that we have with brands and indeed how confident we feel in brands to live up to the promises they make," he said."Brands are promises which we value and are prepared to pay for and if we feel those promises have been broken we're less likely to trust."
       Brands are more than just names,colours or logos think Coca-Cola's red or McDonald's golden arches. A brand includes all the elements of a product or service from its design, ingredients and manufacture to its marketing, advertising and logo.
       "A well-honed brand evokes in consumers an emotion and a promise of what it will deliver, without the consumer having to do much if any research,"said Allen Adamson, managing director at branding firm Landor Associates.
       "Brands are important for all businesses, and critical in categories that have direct consumer contact, like autos,"he said."In a cluttered world where people are time-compressed, brands are short cuts to help them make decisions."
       Each year, Interbrand ranks companies by the amount of their revenue that is attributable to their brands, using a formula that takes into account the brand's future strength and its role in creating demand, whether among consumers or business customers or both.
       The firm assigns a monetary value to each brand and measures annual growth,in this case from July 1,2008, to June 30,2009.
       Given the recession, it was not surprising to see financial companies posting the steepest decline in their brands'values this year, with drops by American Express (now number 22, down from 15) HSBC (now 32, down from 27), Citi (now 36, down from 19), and UBS (now 72, down from 41). Merrill Lynch and AIG both dropped off the list.
       Automakers also dropped in the rankings as their sector's sales slumped in the recession. In addition, major US automakers General Motors Corp and Chrysler Group LLC received government aid to stay afloat, which generated negative feelings among consumers. Neither of those brands made the top 100 Interbrand list.
       Even Toyota's brand top-ranked among auto companies at number eight,down from 6 in 2008 suffered, while BMW went from 13 to 15, and Ford was unchanged at 49. Honda edged up two slots to 18.
       Despite the economic uncertainty,the top 10 brands this year stayed relatively stable, with Coca-Cola Co in the first slot, a place it has held since the rankings started in 2000.
       "The soft-drink maker retains its recognition around the world," Frampton said, and it has been releasing new products as it hopes to woo consumers shifting to healthier juices and teas.
       Coca-Cola's brand value rose 3% in 2009 to $68.73 billion, while IBM's gained 2% to $60.21 billion.
       The technology giant, often known as "Big Blue," also rolled out new products that increased the value of its brand in 2009, according to the report.
       The company which sells computer servers, software and technical services to businesses received more than 4,000 US patents during the period, marking the 16th straight year it has received the most.
       "Rolling out new products keeps customers interested and spending, even in a recession," Frampton said."Companies can't be idle when times are tough.
       "Innovation is the bedrock of any successful company in the future," he said."Nobody can stand still nowadays."
       The remaining brands in the top five all lost value but retained their ranks from last year. Microsoft's brand value fell 4% to $56.64 billion to take third,while General Electric's value fell 10%to $47.77 billion for fourth. Nokia lost 3% to place fifth at $34.86 billion.
       The value of online giant Google's brand grew the fastest in the world again,rising 25% to $31.98 billion to place seventh, up from 10th place last year and 20th the year before.
       Frampton said the company's brand growth "is miraculous," though the report notes that as it gets bigger,"it has to deal with the inevitable mistrust and ugliness ascribed to being a very large,diversified and very profitable company."
       But Deborah Mitchell, executive fellow at the Centre for Brand and Product Management at Wisconsin School of Business, thinks Google already has found balance by earning consumers' trust even as it becomes nearly omnipresent in their lives."That's partly due to Google's value statement 'Do no evil' which resonates with consumers, especially in a downturn," she said.
       Mitchell said consumers "are increasingly focusing on a company's values and don't want to associate with businesses whose values they question.
       "There's been a shift in the focus on values and not just economics to consumers," she said."They're looking more closely at who is selling them what."

Wednesday, September 16, 2009

Pepsi campaign

       Serm Suk, the local producer and distributor of Pepsi, has earmarked Bt50 million for its latest musical campaign, the Pepsi Asian Music Battle.
       To reach new-generation consumers through every channel, the campaign includes a new television commercial starring seven of the hottest K-pop idols and four Chinese superstars, a special trip to South Korea, Pepsi-music gold pendats and other premiums.
       Marketing and sales director Parinya Permpanich said Serm suk had been active in all channels since eraly this year.
       The company has a 63.2-per-cent market share, up 3 per-centage points from this time lasy year.

A world of difference

       In the age of culinary specialisation,the idea sounds preposterous: A restaurant featuring a menu that covers the cuisines of the world OK, not the whole world, but at least French, American, Vietnamese, Mexican,Lebanese, Senegalese, Moroccan, Norwegian, Australian and Caribbean (that's not a country though) as well as Thai.Each country is represented by two or three dishes, except Thailand, which gets about 10. Why these particular nations are covered and others aren't - why Norway and not, say, Denmark?- is hinted at in the owner's background,though the real answer may simply be the vagaries of whim.
       Eat's My World is a restaurant on the 7th floor of CentralWorld, tucked away in a rather obscure corner of the complex's food floor near Zen. The owner is Mr Bilal, a Franco-Vietnamese Muslim from Paris. Thus Eat's My World is a halal restaurant supervised by a coterie of Muslim ladies in veils, with the clientele ranging from Thai, Japanese and Chinese to African and Western - in short, a vibrant cosmopolitan clutch of Ratchadamri shoppers.
       Our verdict: despite the odd-sounding concept, Eat's My World has enough culinary know-how to endow its diverse dishes with individual integrity. More than anything perhaps, what it tries to do stands out from the tasty yet formulaic franchises of chic restaurants that inhabit most of CentralWorld.
       Once seated, a waitress brought us a small cup of dates, an Islamic tradition especially during this fasting month.Scanning the menu, we encountered a number of unfamiliar dishes from farflung countries: Senegalese eggplant cake (99 baht) and chicken yassa (189 baht);kefta from Lebanon (189 baht); chicken creole from the Caribbean (189 baht),Vietnamese beef loc lac (179 baht), Moroccan tagine (189 baht).There are also cheeseburger, representing the US (189 baht), a gratin dish and grilled duck from France (189 and 289 baht), as well as salmon steak, representing Norway (269 baht), though I doubt if any of the ingredients actually come from Scandinavia.
       Never mind. We were pleased with what we sampled. Leading the charge would be the tagine . This very Moroccan dish is basically a chicken stew, with Arabic and North African influences,and at Eat's My World, it came in a traditional cone-shaped earthenware pot - like what you'd have in Casablanca - and a serving of sliced baguette.
       The broth was aromatic, with a mix of potatoes and eggplant, and was very tasty eaten with the crispy French bread.The chicken meat is tender, but not melting from being soaked too long in the soup. In short, a recommendable tagine , considering there are not that many places in all of Bangkok that serve this Maghrebian dish.
       Still in Africa, we proceeded to chicken yassa , reportedly from Senegal. Forgive our ignorance, but we have no way of knowing how authentic this Senegalese dish served at Eat's My World is, but it tasted good anyway.Yassa is a marinated piece of chicken leg topped with a yellowish puddle that reminded us of a mild version of sauerkraut, and served with white rice. The whole thing tasted foreign, if not slightly exotic, with the sour and sweet notes of the sauce kicking in from the first bite.
       We moved on to a French item- the owner is from France - and we picked crepe bolo (129 baht). The white, soft crepe wrapped a stuffing of minced meat coated with slightly sweet sauce. It was a light dish that can be shared among a few people, or as a sort of heavy snack in the afternoon. And again, though it's not spectacular it's rather impressive.
       Lastly, we tried Lebanese kefta . The dish came with three balls of meat served with French fries and two dippings. At first glance the meat looked just like rotund burgers (without the bread), but the first bite revealed the mysterious aroma of Oriental spices, resembling those used in Indian kebab . I'm sure the Lebanese places around Nana or Suk-humvit can offer a more traditional version of kefta , but the flavourful one we had showed that Eat's My World knows what it's doing.
       The final impression as we came out was that this was a restaurant that tries to offer a difference without resorting to hollow gimmicks. It's a mall restaurant that put effort in the cooking.
       Eat's My World, I believe, will have to work hard to attract shoppers away from the familiarity of the Japanese joints and fast food chains, and after a satisfying meal last week we wish them all the success.
       Eat's My World CentralWorld,7th floor Ratchaprasong intersection Tel 02-251-4299 Open: Daily 10am-10pm

Tuesday, September 15, 2009

Communicating effectively

       Murray Darling, managing director of Starbucks Coffee (Thailand) offers his advice to expatriates running their businesses in Thailand on how to get past the language barrier to communicate effectively and to make sure their plans are rightly executed.Darling: "First of all, language is a small piece of understanding things. Visual, body language tells you more than language.
       "Starbucks is all about human connections and human connections [are] way beyond words. I actually find it almost easier to understand our partners [Starbucks staff] here [than] were I to do in other countries where I do speak [their] languages. Because you can tell from the moment you come to the store and see staff smile or you can also tell when things are not right by the body language.
       "In two months, I have been to two-thirds of our stores already. So, spending time with the people in the frontlines and just asking questions.
       "As a farang, we like to move fast and come to decisions quickly. I would say: take more time and listen to everybody's advice.
       "Don't just listen to people who speak good English. Don't be afraid to let the team talk in Thai and discuss in Thai.
       "Use an interpreter when needed. And start to learn some Thai and culture even if that's hard."

Monday, September 14, 2009

Drink-up and feel good about it

       Starbucks' Thai stores on Saturday officially began serving the chain's 100-per-cent responsibly grown, ethically traded espresso coffee.As part of Starbucks' "Shared Planet" scheme - the company's global commitment to doing business responsibly - the espresso is purchased from farmers and suppliers who follow the company's exacting sourcing standards and guidelines for social, economic and environmental responsibility developed in partnership with the environmental non-profit organisation Conservation International. Murray Darling, managing director of Starbucks Coffee Thailand, said that since its founding, Starbucks has worked to positively impact the lives of farmers and their communities. The responsibly grown espresso is an example of the chain's commitment to doing business the right way, he said.
"It is our assurance to customers that they are making a difference every time they enjoy their favourite espresso-based drink in their local Starbucks," he said.
       Starbucks has set itself the goal of purchasing all of its coffee from sources that meet the "responsibly grown and ethically traded" standard by 2015. Last year, 77 per cent of its coffee met the standard. Thai farms are among those the firm is helping to comply with the new requirements, Darling said.
       The "Shared Planet" campaign also includes targets on community involvement and environmental stewardship, such as using 100-per cent reusable or recycleable cups by 2015, and for all new company-owned stores to be certified "green" by 2010. This condition is particularly relevant here, as Starbucks Coffee Thailand is one of only about 10 wholly-owned Starbucks subsidiaries in the world.
       In Thailand, Starbucks has since last year offered a 10-per-cent discount on all beverages to customers who bring in their own reusable mugs. Marketing and communications director Sumonpin Jotikabukkana said customers are currently bringing in about 32,000 reusable mugs per month, up 50 per cent from last year, reflecting a growing environmental awareness in the Kingdom.
       Unlike in the US, where many Starbucks customers order their beverages to go, more Thai customers sit and drink in the stores, which helps the environment because they are served with reusable ceramic mugs.
       Already, more than half of the mugs used in Starbucks stores here are reusable and recyclable, Sumonpin said.

Saturday, September 12, 2009

THE CHEF A LA MODE

       Torsit Sarisdiwongse is the man behind the mouthwatering menu at trendy Greyhound Cafe (www.greyhoundcafe.co.th).The executive chef's main duties entail menu design,budgeting, training staff and ensuring the tasteful quality of eight establishments around town.
       WHEN DID YOU GET INVOLVED WITH GREYHOUND CAFE? I've been the executive chef since the start - around 12 years now. The first branch is at The Emporium. WAS IT DIFFICULT TO COME UP WITH THE MENU? Most of the dishes were inspired by food that Greyhound Cafe's partners like. Food that they experienced on their travels or their friends' home cooking. We adapted these dishes or re-created them with our own recipes. WHAT WAS THE FIRST GREYHOUND CAFE DISH? Spaghetti with Thai anchovy. At the time I found it quite unusual and didn't think spaghetti and Thai anchovy could go well together. The dish came about when one of Greyhound Cafe's founders, Khun Bhanu Inkawat, went to Milan and tried Italian-style spaghetti with anchovies. He told me briefly about the ingredients, the taste and the presentation of the dish. So I recreated the menu with Thai anchovy and added some local ingredients like dried chilli, peppercorns and sweet basil. I experimented with about 10 recipes until we got Greyhound Cafe's own signature.
       HOW LONG DID THE TASTING TAKE WHEN YOU DESIGNED THE MENU? Before we got each dish, we had to try about 10 recipes.When the restaurant first opened, we had around 60 dishes. So we'd tried hundreds of dishes [smiles]. It took about a month for the tasting at first. DOES MENU DESIGN ALSO INVOLVE MARKETING? The marketing department gives me a promotional plan such as the current "Italian Feast". For this promotion I came up with new dishes using Italian sausage. Because most Thais might not be familiar with Italian sausage, I needed to come up with dishes that sell, that suit Thai and foreign palates. DO YOU ALSO HAVE TO TRAIN EVERY SINGLE CHEF? Yes, because each one has a different background. New chefs need one month of training. I train the head chef of each branch as well as the assistants. So that's around 200 people. WHAT'S YOUR FAVOURITE DISH AT THE CAFE? I like pasta dishes. I like Spaghetti with bacon and Spaghetti with Thai anchovy, mainly. HOW DO YOU SPEND YOUR LEISURE TIME? Reading. I look for references or inspiration for new special dishes. YOU READ ABOUT FOOD IN YOUR FREE TIME? Sometimes, because we normally have a marketing plan for the year and I have to come up with special or seasonal dishes, so I need to study. DO YOU COOK AT HOME? Not really [smiles]. I normally buy from outside. But I cook sometimes when there's a weekend gathering with friends at home.GTo see an extended interview with Chef Torsit, visit gurubangkok.com

Monday, September 7, 2009

NESTLE TO PROFIT FROM CHINA MILK SCANDAL

       Nestle, the world's largest food company, says sales growth in China may double to 20 per cent this year as it takes market share from rivals affected by last year's tainted - milk scandal.
       "We have gained market share, all our businesses, our branding is stronger and we had greater market recognition," Patrice Bula, chairman and chief executive officer of Nestle (China), said in an interview in Shanghai. "In the milk crisis, we were not part of it, we're not directly affected by it because all our products are safe."
       Milk tainted with melamine caused the deaths of at least six babies and sickened almost 300,000 other children in China last year. Government tests found the toxic chemical, used in making plastics, in the products of 22 companies including China Mengniu Dairy, the nation's biggest liquid-milk producer.
       "The made - in - China label is really damaging and a lot of Chinese consumers don't like it," Shaun Rein, managing director of China Market Research Group in Shanghai, said yesterday. "Nestle has the ability to increase market share, partly because everybody's fleeing the domestic producers."
       Mengniu posted a 949-million yuan (Bt4.87 billion) net loss last year as a result of the scandal. Company profit rose 29 per cent to 936 million yuan the previous year.
       Government support has helped the Chinese dairy industry increase consumption and industry sales are now equal to about 90 per cent of the level before the scandal, Bula said.
       Switzerland-based Nestle operates 21 factories in China and sells products including Nescafe instant coffee and Kit Kat chocolate wafer bars. Sales in China, Hong Kong and Taiwan rose 10 per cent last year to 2.23 billion Swiss francs (Bt72 billion), 2 per cent of global revenue, according to the company's website.
       The food and beverage maker aims to introduces" to accelerate sales growth in the fourth quarter, Bula said. Nestle's coffee, bouillon, milk and ice cream are among its best-selling products in China, Bula added.
       "The industry is at a stage of restructuring, where we are beginning to see which are the good companies that produce good quality products," said Rong Yaozhong, general manager of Shanghai Totle Food, Nestle's venture partner for Chicken bouillon.
       "A lot of companies will imp rive the quality of their products while those that fail to meet set standards will be shut."

Sunday, September 6, 2009

COCA-COLA CEO POPS INTO THAILAND TO DISCUSS GROWTH STRATEGY

       Coca-Cola USA chairman and CEO Muhtar Kent yesterday met with local bottling partners to map growth strategy.
       He expressed optimism about the Thai market, saying the company's business in the Kingdom had the potential to double in size.
       Kent was on a two-day visit to Thailand, during which he met with the leadership of the company's local bottling partners - Thai Namthip and Haad Thip - to discuss growth strategies for the local beverage market.
       The visit was timed to coincide with celebrations for the 50th anniversary of the establishment of Coca-Cola bottling partner Thai Namthip.
       Kent, who lived in Thailand as a child, said: "The purpose of my visit is to affirm to the team in Thailand our commitment to Thailand, our confidence in the future of the Thai economy and our belief in the considerable potential of the Thai market. We have enjoyed a strong partnership over many years with our local Thai bottlers and know that the key to further success in this market lies in understanding and best serving the rapidly evolving needs of Thai consumers, customers and the communities in which we operate."
       The Coca-Cola system in the Kingdom consists of Coca-Cola (Thailand), Thai Namthip and Haad Thip. Haad Thip serves the 14 southern provinces, while Thai Namthip serves the rest of Thailand.
       During his visit, Kent paid a courtesy call on Prime Minister Abhisit Vejjajiva at Government House and met with the leadership of one of the Coca-Cola Foundation Thailand's main corporate-social-responsibility partners.
       He also visited stores and markets in the greater Bangkok area and held discussions with a group of the Coca-Cola system's Thai female business leaders. The latter activity was part of Coca-Cola's global initiative, led by Kent, to accelerate the recruitment, development and advancement of female talent in Coca-Cola offices around the world.
       Coca-Cola USA recently announced it had achieved growth in volume and value share worldwide in non-alcoholic ready-to-drink beverages for the eighth consecutive quarter. The Pacific region, including Thailand, showed particularly strong growth.

Thursday, September 3, 2009

Coke to ramp up investment if taxes ease

       The US soft-drink giant Coca-Cola Co has pledged to increase its local investments if taxes on the sector are eased.
       Coca-Cola is set to ramp up annual investment from about one billion baht should the government revise its tax and price control structures, said Kiat Sittheeamorn, head of the Thailand Trade Representative office, quoting Coca-Cola chairman and CEO Muhtar Kent.
       Mr Kent met Prime Minister Abhisit Vejjajiva yesterday.
       The carbonated soft drink industry in Thailand is currently subject to a relatively tough regulatory system, as it encounters both excise tax and the Commerce Ministry's price watch list.
       Soft drinks are categorised as a luxury product by the Finance Ministry, which subjects them to excise tax as high as 21%. The Commerce Ministry must also be informed before any price increase.
       Mr Kiat said the American company saw existing measures as an unfair practice and a key obstacle for its investment expansion in Thailand.
       Price controls on soft drinks are only enforced in some Asean countries including Cambodia, Vietnam, Laos and Thailand, said Mr Kent.
       The premier yesterday promised to consider Coca-Cola's request and directed the TTR to study how to address the complaint.

Coca-Cola adds fizz to coconut water

       The soft-drink giant Coca-Cola Co has taken a minority stake in a coconut water company, continuing its move into juices and teas as consumers spurn soft drinks for health and cost reasons.
       The Atlanta-based maker of Coke and Sprite and Zico Beverages LLC announced the investment on Tuesday.Coca-Cola declined to say howmuch its investment was worth, other than to say it was a stake of less than 20% in the company.
       Hermosa Beach, California-based Zico said in a statement that it has received a $15 million investment from partners including Coca-Cola, beverage entrepreneurs, distributors, celebrities and others. So Coca-Cola's stake was worth less than that.
       The move means another major drink maker is eyeing coconut water as it looks to boost sales.
       Last month PepsiCo Inc announced it was buying Brazil's biggest coconut water company, Amacoco Nordeste Ltda and Amacoco Sudeste Ltda. Terms of the deal were not disclosed.
       Sales of soft drinks have been falling in recent years as consumers seek out healthier juices and teas and limit their purchases to save money.
       Coconut water -the fat-free,potassium-rich liquid inside young, green coconuts - is popular in other countries and just starting to catch on in the US According to a report from Merrill Lynch,sales in Brazil are worth more than $300 million a year, while sales in the US are about one-tenth of that.
       Coconut water is not to be confused with coconut milk, the liquid that comes from pressed coconut meat.
       "The product has long-term potential in the US because it has several attributes many consumers are looking for now in beverages," said John Sicher, editor of the trade publication Beverage Digest ."The drink is relatively low in calories,natural, new and functional - meaning it provides a purpose to consumers," he said.
       In this case, some consumers consider it a natural sports drink. Given the potential for the product, Sicher said it "makes sense for the big soft drink makers to invest in the category.
       "The beverage companies need to innovate and have new kinds of products and the products need to appeal to what consumers want today," he said."I think that coconut water, it's too early to tell,but it does have some potential."
       In April, Coca-Cola said it would buy a stake of less than 20% in British fruit and smoothie drinks maker Innocent Drinks worth ฃ30 million, or about $44 million at the time the deal was announced.
       This winter, the company saw a setback from the Chinese government's blocking of its proposed $2.5 billion purchase of Huiyuan Juice Group Ltd because of monopoly concerns.
       Now the company wants to get into the coconut water business.
       "It's an exciting new category and an exciting new brand in the category,"said Coca-Cola spokesman Scott Williamson.
       Zico, a privately held company, was founded in 2004. The company did not immediately return a request for sales figures.
       The line of Zico Pure Premium Coconut Water, including flavours like mango and passion fruit, is sold in gourmet grocers, natural food stores, yoga studios and other locations.