Progressive Grocer

DEC 2016

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December 2016 | progressivegrocer.com | 53 and finding segments where it would be cool to reinvent those products without all of the sugar and calories, and without compromising taste." As in other categories, hypersegmentation is affecting the coconut water segment of the category, and manufacturers are finding ways to differenti- ate their brands. "We're seeing a division of super- premium, mainstream and value waters," notes Jane Prior, EVP of global brand strategy and development at Vita Coco. Last March, the New York-based com- pany launched Coco Community, a super-premium "artisanal" coconut water made with Nam Hom coconuts supplied by ai coconut processor Cocos Enterprises. e brand is organic, Fair-for-Life certi- fied and single-origin. Prior notes that consumers are willing to pay more for a product that they believe in. A 250-ml single-serve container of Coco Community retails for $2.99, versus $1.99 for a 330-ml single-serve bottle of VitaCoco. Sparkling Conversation Innovation is also fueling the sparkling water cate- gory, which is seeing an influx of premium products flavored with natural juices, and featuring a no- or low-sugar content profile. e products are positioned against traditional carbon- ated beverages. "e sparkling water category was starved for innovation, and there wasn't any premiumization going on, so we came into that space with an eye to bringing fresh ingredients and the locavore trend to sparkling water and elevating offerings in the cate- gory," says Bill Creelman, founder of Spindrift Fresh, in Waltham, Mass. Alta Palla, the line of sparkling juices from Hi-Ball Energy that launched in April, is adding a four-SKU sparkling water line in 2017. e launch represents a bigger non-energy commitment for the brand. "Consum- ers want good taste, and they want natural and organic, and they want Fair Trade," says Todd Berardi, president of San Francisco-based Hi-Ball, adding that Alta Palla's super-premium look will attract new users to the category. In the energy drink category, Cleveland, Ohio- based Avitae USA, unveiled Sparkling Avitae, a line of carbonated caffeine waters. PG

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