Capturing Coconut Water Growth

Coconut water Global trends, sciences, processing and packaging technologyCKC/2013CKC/2013Our scope - Marketing & supply chainMarket informationSupply chainStreet & packaged retail pricesPrices of nuts

ManufacturersPrice point

Coconut water trend & positioningCoconut Knowledge Centre/ 2

Integrated TechnologyCoconut Knowledge CentreCKC/2013Our Scope - Science & technologyScienceProcess Flow & Formulation

Operations

Addressing browning effect from oxygen exposure in processing

/ 3Global trendsSnapshotCKC/2013

CAGR 17,79%000 litresPacked coconut water started as early as 1995!!!CKC/2013Brazil where it all startedSource: Kantar World Panel 2010

About 10% of all harvested coconuts are processed for coconut waterCarton97.69%Can 1.53%Others 0.78%Drinking at the beaches

Ambient distribution , tasty and practical

Top Brands!The estimated value of the Brazil coconut water market in 2011 was 588 mio BRL (~ 293 mio USD)- Tetra Pak CompassVolumeValueCAGR 06-118.28%14.39%/ 552003 para 2004 falta de gua de coco no mercado e problema de distribuio com a mudana de empresa pelos scios.Brazil MarketCKC/2013Multiples possibilities, positioning and uses

Partnership with fashion brands

Special editions

Explore new usages

Partnership with restaurants

On the goconsumptionIn-home consumption

60%40%Focus on naturalness

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USA setting trends for consumption of coconut waterStrong wave of publicity, including celebrity endorsements

CKC/ 2013

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USA Market

Highest number of launches in 2011 (plain and flavoured variants), with coconut water having a higher price point versus sports drinksSource: GNPD, 2011, coconut water (matches Sports & Energy Drinks, Juice)USA launches in 2011

Average price per Litre (USD)

Coconut water: $4.79/LSports Drinks: $1.82/LPrice (USD)Source: SymphonyIRI Group Market Advantage- 52 Weeks Ending 12-30-12 - Total US FDMxCCKC/2013/ 8Where Categorymatchesone or more ofSports & Energy Drinks,Water,RTDs,Other Beverages,Juice Drinksand Date Publishedis betweenJan2011andDec2011and Product Descriptionmatches"coconut water"with word variants

In SSEA, it all started with a simple idea...CKC/2013How to avoid wastage of coconut water?Mature nutsWater PulpCoconut milk/creamDesiccated coconut BranCopra oilCulinary usesAnimal foodSoap, cooking oilVirgin oilCosmeticsHuskFurnitures, car seat

Waste

Young nutsCoconut water

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2. Indonesia15.2 bio nuts3. Philippines15.2 bio nuts1. India16.9 bio nuts5. Sri Lanka2.7 bio nuts9. Thailand845 mio nuts7. Papua N Guinea1.1 bio nuts8. Vietnam940 mio nuts10. Malaysia557 mio nuts4) Brazil processes >10% of its total nuts produced 3.5 Bio nuts 350 mio nuts 100 mio litresSource: Asian and Pacific Coconut Community Statistical Yearbook 2011Major coconut producers globallyCKC/2013Three largest are in SSEA much potential to be unlocked6. Mexico1.4 bio nuts/ 10Sri Lanka Silver mills produces 200,000 nuts per day. Renuka group just bought TP filling machines.Carton packed coconut water in SSEA

IndonesiaThailandCKC/2013

The Philippines

Launched in September 2012Rejuvenation of brand in 2012India

Tendo - First Indian regional tender coconut water in TBA200S

/ 11Supply chainCKC/2013From harvesting to packing to the consumers...Raw MaterialsProcessingManufacturerDistribution/retailerConsumerGovernment/society

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Coconut waterSabut KelapaKelapa MudaKelapa TuaTempurung KelapaBuko SegarDaging Buah KelapaKue KelapaManisan Serutan KelapaSalad KelapaBuah KelapaInsulatorBatako PresGantungan BungaGumpalan Benang ikatInsulatorIsi Jok KursiCarpetsKesetPatung KecilAir FiltersPewarna BatikSikatTali

Batako PresPewarna BatikCarpetAir Kelapa Dingin/ Minuman SegarKecap KelapaCuka KelapaPengganti DekstrosaSari Kelapa Nata de Coco

Cuka Kelapa

PenggantiDekstrosa

Manisan Serutan KelapaDagingBuahSegarMinyak yang tidak dapat dimakanMinyak yang dapat dimakanPelet KopraMakanan TernakBungkil KelapaEs KrimMinyak GorengMinyak Goreng

Bahan KimiaCatGliserinKrim RambutMinyak MentahMinyak RambutSabun CuciSabun MandiShampo

Cat

Gliserin

Krim Rambut

Minyak Rambut

ShampooVCODagingKelapaParutKulit Ari Daging KelapaThe Potentials of CoconutAmpas Kelapa Rendah LemakKelapa Parut KeringCoconut creamDaunPucuk DaunManggar KelapaPelepah KeringBatang KelapaAkar Bingkai LemariJanurKeranjang SampahSapu LidiSarang KetupatTatakanTempat BuahKeranjangSampahAsinanBonggol/KelapaMuda/UbodIn BrineLumpiaJenewer/Gin/LambanogRagiTubaGulaTubaKipasSandalTas TanganTopiKipasTopiBahanObat-obatanBahan Pewarna/Bahan CelupRoot Beer

BahanObat-obatanPerabotBahanBangunanGentengKayu BalokKayu GelondonganPapan Kayu

PapanAsbakAsesoris MejaBangku Duduk SantaiBinkai LukisantCawanMeja KomputerPemberat KertasTempat BuahTempat KlipTropiDan Kreasi LainnyaLemakMargarinPermenSusu IrisSusu KelapaSantan KelapaTepung SantanSari Susu KelapaSusu BubukMinyak MurniCosmeticsBubuk SusuSusu KocokBiscuitsKue Kelapa KeringMakaron Kering

Biscuits

Tepung Santan

MargarinKue KelapaMinyak Semi MurniArangCelenganHiasan DindingIkat PinggangActivated carbonAsbakKancing dan AsesorisKotak PerhiasanObat NyamukPenggarukPenyaring/FilterSendokTas TanganTepung Batok KelapaVas BungaBahan PembersihBahan PemurniBahan PenyerapKatalisator

Arang

Activated carbon

Ikat Pinggang

Obat Nyamuk

KopraMinyak Goreng

VCOCKC/2013Sciences, processing and packagingCKC/2013

() 95 C() 80 C() 85 C() 90 C Prevention methods1. Careful handling of nuts2. Enzyme deactivation

Enzymatic activity vs temperature graph

SciencesCoconut varieties differ in:Volume of waterTaste profiles Physiochemical propertiesEnzyme activities...etc

CKC/2013Causes of Browning & Pinking

Enzymatic browning & Non-enzymatic oxidation

Intermediate Pink compounds

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Higher Thermal Impact1) more browning2) pink colour becomes brown

Sciences

Direct Heat-treated coconut water has longer shelf life than Indirect Heat-treated coconut water

From plantation to consumerTetra Pak Processing SolutionsTetra Pak Packaging SolutionsLocal systemsHarvest/collectionDehuskDeshellParingCuttingDisintegrationPressingCoconut watercollectionCoconut milk collectionFine FiltrationCooling & SeparationPasteurizationStorageBlendingAseptic Processing

Coarse filtrationCoconut water processingCKC/2013/ 18

Step by stepTo minimise microbiological growth and enzymatic/ non enzymatic reactionsCKC/2013Cooling

Moulds

Yeasts

Bacteria

Bacteria

BacteriaMicro-organisms can be found everywhere...

Causes of Browning & Pinking

Enzymatic browning & Non-enzymatic oxidation

Intermediate Pink compounds/ 19Step by stepTwo enzymes present in coconut water are polyphenol oxidase (PPO) and peroxidase (POD).Higher temperatures faster decrease in enzymatic activity

CKC/2013Deactivation of enzymes

() 95 C() 80 C() 85 C() 90 C Enzymatic activity vs temperature graph/ 20

Step by StepClosed systemRemove fat from coconut water to prevent rancidity- Mature coconut water has higher fat content than tender coconut waterRemove contaminants from coconut waterHermetic system to prevent incorporation of airCKC/2013Hermetic Separation

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Step by stepAddition of ingredients for flavoured variants of coconut water - sugar, concentrates, juices ...etcGentle agitation - Prevent incorporation of air

CKC/2013Gentle blending/ 22

Step by stepTwo systems direct and indirectReduce microbial loadCKC/2013Ultra-high temperature(UHT) treatment

Direct heating system

Indirect heating system/ 23

Vegetative cellsSporesPathogensYeastMouldVirus

Indirect systems-Tubular heat exchangers- Scraped-surface heat exchangers- Plate heat exchangers

Direct systems- Steam injection with subsequent flashing- Steam infusion with subsequent flashing

Available UHT systems on the market 2

Aseptic processing and fillingCKC/2013

Aseptic environmentSterilisationSterilisationAseptically packedproductProductContainerContainerFilling &sealing

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Commercial sterilityThe commercially sterile product must:Keep without deterioration, stable and good commercial value during storage

Free from micro-organisms and toxins harmful to the health of consumers

Free from any micro-organisms liable to proliferate during storage

CKC/2013/ 262

654321Polyethylene - protects againstoutside moisturePaper - for stability and strengthPolyethylene - adhesion layerAluminium foil - oxygen, flavourand light barrierPolyethylene - adhesion layerPolyethylene - seals in the liquid123456Tetra Pak Aseptic Carton Packaging Material21% PolyethyleneAdhesion & Protection74% PaperStability & Strength5% Aluminium FoilOxygen, Flavour & Light BarrierCKC/2013/ 2727

Quality of coconuts harvestedExtraction and collection method Processing conditionsAseptic filling machineStorage conditions

Factors influencing product shelf life

Critical parameters of coconut water processingCKC/2013/ 29Harvest/collectionDehuskDeshellParingCuttingCoconut waterCollection and coolingFiltrationEnzyme deactivationCoolingStorageGentle BlendingAseptic Processing & Filling

SeparationFreshest supply possibleDiscard bad nutsProper handling to prevent cracks in nutsCritical parameters of coconut water processingCKC/2013/ 30Harvest/collectionDehuskDeshellParingCuttingCoconut waterCollection and coolingFiltrationEnzyme deactivationCoolingStorageGentle BlendingAseptic Processing & Filling

SeparationProper handling to prevent premature exposure of water to environmentMinimise contamination during cutting stageCritical parameters of coconut water processingCKC/2013/ 31Harvest/collectionDehuskDeshellParingCuttingCoconut waterCollection and coolingFiltrationEnzyme deactivationCoolingStorageGentle BlendingAseptic Processing & Filling

SeparationCool and deactivate enzymes to minimize deterioration reactionsRemove fats with separation stage to prevent rancidityCritical parameters of coconut water processingCKC/2013/ 32Harvest/collectionDehuskDeshellParingCuttingCoconut waterCollection and coolingFiltrationEnzyme deactivationCoolingStorageGentle BlendingAseptic Processing & Filling

SeparationCool to minimize deterioration reactions Minimize storage time minimise time from extraction to aseptic packingPrevent air incorporation with gentle agitationCritical parameters of coconut water processingCKC/2013/ 33Harvest/collectionDehuskDeshellParingCuttingCoconut waterCollection and coolingFiltrationEnzyme deactivationCoolingStorageGentle BlendingAseptic Processing & Filling

SeparationStorage temperature

THANK-YOUCKC/2013/ 34Chart1763493681115213540221113000031830355603741936966410434146748800558006060086000

1995199619971998199920002001200220032004200520062007200820092010

Sheet1199419951996199719981999200020012002200320042005200620072008200920105,2007,6349,36811,15213,54022,11130,00031,83035,56037,41936,96641,04341,46748,80055,80060,60086,000To resize chart data range, drag lower right corner of range.

Chart15.49712607275.45610728115.38930009722.624921065.68269889616.46698659961.82759726221.35653432761.38991228735.9462563765

Weighted average base price per Litre (USD)Weighted Average Base Price per Litre equivalent (USD)

Sheet1Weighted average base price per Litre (USD)Vita Coco5.50Zico5.46O.N.E.5.39Goya2.62Naked5.68Taste Nirvana6.47PEPSICO INC1.83COCA COLA CO1.36PRIVATE LABEL1.39NEUROBRANDS LLC5.95