Last Updated Sep 2, 2009 12:54 PM EDT
As carbonated sodas fall out of favor, soft drink companies are looking to expand their offerings and focus more on things like teas, sports drinks, energy drinks and vitamin waters.
Coconut water is a popular option in many Asian and Latin American countries, and it's slowly gaining attention in the U.S. It's found within young, green coconuts and is different from coconut milk, which is squeezed from the meat of the fruit. Complete with electrolytes and carbs, coconut water has been hailed as a natural sports drink.
But Coke and Pepsi are making tentative steps -- the Coca-Cola Company took only a minority stake in ZICO, and PepsiCo is starting off selling coconut water just within the Latin American market.
If the coconut water trend takes off here, however, both companies will be ready to take advantage.