High-Hanging Fruit
Page 22
Letting go of Zico was hard, and trusting Coke with the brand that we had cultivated and nurtured was certainly a gamble. Would they know how to maintain and grow it? Our dream was that in selling Zico to Coke we’d begun a change for that company—that they would use their massive production, distribution, and marketing power to begin to deliver a healthy beverage to populations around the world. That would be a public health coup of major proportions, but it remained to be seen if they would pull it off. How would they treat employees and suppliers down to the farmers and what would happen to them? Would they continue to factor in the environmental impact of Zico? It was all uncertain. But what I believed was that fundamentally the people at Coke wanted to do the right thing and that the Zico brand and team that would continue to run it were strong enough to survive and thrive in that environment and keep the brand values intact.
Putting the what-ifs aside, we talked about the lessons we had learned about starting a business and creating a brand in a rapidly changing business climate. In a decade we had established Zico as an icon-in-the-making brand and been one of the first to market in what was on its way to being a multibillion-dollar new global category. We had helped disrupt the beverage industry that had for over a century relied on selling caffeinated sugar water in endless varieties and flavors. We had laid a foundation upon which dozens of entrepreneurs were building perhaps even better brands and businesses. We had made a positive contribution to the health of millions and spurred massive and sustainable economic development in numerous poor countries. We had given ourselves and our team of employees the opportunity to learn, contribute, and grow. We created a brand that stood for something good in the world and delivered authentic value by looking within our own lives to discover what was important to us. As our reward, we now had the know-how and financial resources to help other entrepreneurs on their quests, and many of them were taking the concept of reaching higher to a whole new level.
Standing in front of a piece of fine craftsmanship or a piece of art, you can sense the human passion and joy that went into the creation. I believe that businesses and brands today should be no different. Like many other entrepreneurs, I discovered that consumers, investors, employees, and partners respond enthusiastically to products and brands when the passion, personality, and enthusiasm of another person shine through. If you reach higher and pursue a venture that is deeply personal, bigger than just you, and is close to your highest and best self, you cannot lose, and the world will be better for your having done so. That is reaching higher and that is revolutionary.
ACKNOWLEDGMENTS
Like everything important I’ve ever accomplished in my life, including founding and building Zico, completing this book was the result of the effort of many, many people. There is simply no way I could have done it alone and also no way to recognize everyone involved, but I do want to mention a few. Thanks to their support, encouragement, dedication, and occasional kick in the rear, it all came together better than I could have hoped.
First and foremost, I want to thank Adrian Zackheim, my brilliant publisher. He saw something in me and my story and coaxed and prodded me until I found that kernel of truth that became the basis for High-Hanging Fruit. Stephanie Frerich, my charming and talented editor, believed in me much more than I did myself at times and had just the right balance of positive encouragement to keep me writing and tough love when it came to delivering a readable book fit for publication. Pilar Queen, my incredible agent, saw potential in my story before nearly anyone else and fought hard, even against me sometimes, to keep its integrity and ensure the final product was the best I could produce.
Lisa Tenner’s writing course and consultations helped me begin the long process of finding my voice. I owe special thanks to my writing coach, Ethan Watters. His patient prodding, spot-on suggestions, and tireless dedication not only helped me understand and use language, tone, structure, flow, and the art of storytelling: he helped me fall in love with writing.
After reading this book, there should be no doubt about the role my wonderful wife, Maura, played in Zico and my life. So, too, in this book. Her encouragement and support, memory, countless edits and discussions, ego-popping challenges, and reminders to follow my own advice about staying sane and enjoying the ride helped me do both and deliver the best book I could. My beautiful daughters, Ciara and Lexi, were an inspiration from the beginning and always remind me what’s really important in life. They and so many in their generation give me hope for the screwy yet awe-inspiring world they will inherit.
My parents, siblings, and extended family have always believed in me, and knowing they would forever welcome me back into the family fold allowed me to take off on wild journeys, including this book. Special mention to my sister, Mary Beth, who has been one of my best friends and inspirations since my first memories and was so much a part of the Zico and High-Hanging Fruit journey.
Maura’s family, the Smiths, played an equally important role, taking me as one of their own and supporting and encouraging Maura and me on our wild adventures. Special thanks to Barb for being one of the earliest believers in Zico and Gerry for being a true life mentor and pushing me hard to make sure this book would not be a “thud.”
I certainly need to thank all the Zico team, past, present, and future, in the U.S. and around the world. There are so many that my editor would not allow me to mention you all, but thanks to your and your families’ and significant others’ passion, sense of ownership, and commitment to making the Zico brand your own, you made it so much more than I ever could have done alone. Special thanks to the Lead Team in its various iterations, especially Candace Crawford, Chris Weavers, Bill Lange, and Mike Sharman. Also to the sales and marketing “dirty dozen” who came aboard when Zico was barely out of kindergarten and stuck around to help build it into the powerhouse brand it was meant to become: Andrew Griffiths, Rory Mulcahy, Andrew Giardino, Carlos Ramirez, Michael “Buck” Williams, Katie Journeay, T. J. Leenders, Jeff Seavey, Matt Rothschild, Juliet Kim, Treva McCroskey, and Michelle McKinney. Then there is the earliest Zico team, circa 2004: Roberto Ruiz, Jose Gonzalez, Chris Michaels, Juan Gutierrez, Jhonnie Ospina, and James Heslop. You laid the foundation and early momentum that got it all started.
Thanks to Jesse Itzler, Marc Adelman, Jennifer Kish, Brian Black, Adam Padilla, and the rest of the Suite 850/100-mile man team. I loved your drive, creativity, and determination and only wish we had a chance to really show the world what we could do together over a longer term.
I want to thank the nearly one hundred investors in Zico. Without your belief in me and Zico and providing your precious resources, encouragement, and support again and again, Zico would simply not exist.
Thank you to those on the various iterations of Zico’s board of advisors and directors for your guidance and support, including Jack Belsito, Peter Brodsky, Marie Quintero Johnson, Wendy Clark, Ron Lewis, Deryck van Rensburg, and especially consigliere extraordinaire and dear friend Jim Tonkin. You all pushed me to be better and always helped me do what was right for the business and brand.
There are many I want to thank in the yoga community but I can’t possibly mention them all. I do want to make special mention of Jen Lobo, Donna Rubin, Karima and David Wilner, Mark Drost, Otto Cedeño, Tricia Donegan, Darius Le Gall, Mardina Chen, Najla Barile, and all their staff, teachers, and students over the years. Your support of Zico helped us immensely, as did you welcoming Maura and me into your community. Then there are the many celebrities, athletes, nutritionists, trainers, and other influencers including the many iterations of Team Zico. Thank you for putting your time, support, and reputation behind Zico.
There are so many in the beverage industry to thank, but once again I can’t possibly mention them all. First, a very special thanks to the Hershkowitz family, Lewis, Lynn, and Stephen, as well as Jerry Reda, Dan Reade, and the whole Big Geyser team over the years. You challenged me and my team to make Zico the best it could be
and stuck with us when we failed again and again. Special thanks to Harold Baron and especially Irving “Hal” Hershkowitz (may they both rest in peace). Big H reared so many brands and made a huge and lasting impact on our industry. We all owe him a debt of gratitude. Thanks as well to Tony Haralambos, Ralph Crowley, Scott Beim, Marc Kramer, Gary Poos, Gary Rezeppa, John Blair, John Keaneally, Tom and Scott LeBon, Brad Barnhorn, Greg Horn, John Sicher, John Craven, Jeff Klineman, Michael Bellas, Bruce Klion, Bob and Bill Sipper, Bob Corsaro, Tom DeLucca, Richard Hall, Ross Colbert, Andrew Kaplan, and their respective organizations and teams. Also special thanks to Gerry Khermouch for fact-checking and editing certain elements of this book. I learned so much from each of you and would have a very different story to tell without your help, support, and guidance.
There were so many great beverage entrepreneurs that went before me and helped and inspired me over the years. Don Vultaggio, Rodney Sachs, Mark Hall, Darius Bikoff, Mike Repole, Lance Collins, Tom Scott, Tom First, Seth Goldman, Todd Woloson, John Bello, Greg Steltenpohl, and Jimmy Rosenberg among them. You laid the foundation on which Zico and every new beverage brand is built. Thank you for what you did.
To what I’ll call the New Age Beverage Class of the early 2000s: Ryan and Jeremy Black, Clayton Christopher, David Smith, Kara and Theo Goldin, Eric Schnell, Steve Kessler, Chris Cuvelier, Alex Pryor, David Karr, and Steve Hersh among many others. I learned so much from you fighting for shelf space, sharing war stories, watching successes and failures. Special thanks to Mike Kirban and Ira Liran from Vita Coco and Rodrigo Veloso from ONE and their incredible teams. Yes, I wanted to crush you and I know you felt the same, but in hindsight I’m thankful for worthy competitors that kept me on my toes and made me and our whole team better.
There were so many organizations that helped Zico in sales, marketing, legal, accounting, and other services over the years and I can only highlight a few: Bill Weiland and team at Presence Marketing. Danny Stepper, Dino Sarti, Pat Bolden and the crew at L.A. Libations. Colin Jones, David Johnson, and everyone at Omni Partners. Josh Wand and team from BevForce. Tom Aarts, Grant Ferrier, and the Nutrition Capital Network. Mark Denusak and team at Commerce House. John Butler, Greg Stern, Patrick Kiss, and all at Butler, Shine. Eric Johnson and team at Ignited. Sandy Hillman, Alison Brod, Rob Bratskeir, and their respective teams. Mara Engle, Sheryl Roth, and crew at Organic Works. Alan, Eddie, and team at Phoenix Warehouse. Jon Vaccaro and the Bettaway organization. Marc Press, Barry Schwartz, and team at Cole Schotz; Vincent Bacchetta and Company; Alon Haim and team at Citizens Bank.
Many hundreds and soon to be thousands of people at The Coca-Cola Company in the U.S., Europe, Asia, and Latin America have dedicated incredible amounts of time, effort, and true passion to scale Zico, and I can’t thank you enough. The list would be incredibly long but I do want to give special mention to the Ventures and Emerging Brands team, especially Deryck van Rensburg, Scott Uzzell, Matthew Mitchell, Mike Ohmstede, Matt Hughes, Tom Larson, Darren Marshall, Rebecca Messina, Mark Kelsey, Wadhi Khayat, Lorna Peters, Sarah Hutton, Mary Ann Somers, and Debbie Bachman. It gives me great pleasure to know such a dedicated team is now taking Zico to the next level in hands more capable than mine.
So many other individuals helped me and Zico over the years and there are a few I’d like to highlight: Perry Abbenante, Geoff Abbott, Dr. Peter Adams, Leonard Armato, Lara Bandler Hogan, Tim Barton, Eric Bechtel, Jay and Nancy Benkovich, Sara Blakely, Phillip Boyle, Andy Burger, Juan Pablo Cappello, Rocky Clause, Rodney Cohen, Joe Desena, Dr. Michael DiGeronimo, Carolla Dost, Jake Fontenot, Katherine Gehls, Gil Greene, Mike Guidry, Ken Haubein, Palo Hawken, Chris Hoemeke, Dustin Hopper, Jake Jacobs, Marc Joubert, Scott Kaufmann, Marc Kipfer, Mike Kirk, Jen Kushell, Don Lee, Phil Lempert, Gert van Manan, Pat Mitchell, Juan Carlos Rojas, Jack Schwartz, Errol Schweizer, Ben Silverman, Dr. Charles Sims, Diane Snyder, Tim Sperry, Art Volkman, Michael Miqueli, and Alfredo Liranzo.
Thank you to the friends I made in Pittsburgh, Marquette, Peace Corps, Duke, and the ones Maura and I made in North Carolina, Memphis, El Salvador, New York, Redondo Beach, and so many places around the world. I have been influenced by all of you for the better. A special mention to my partners at Powerplant Ventures, Kevin Boylan, T. K. Pillan, and Dan Beldy for dealing with my crazy writing schedule over the last two years.
Thank you to the thousands of people across the tropical world who have dedicated their time, effort, and resources to plant, cultivate, harvest, and process the wonderful coconuts that make Zico what it is. There would be no Zico without you and no fruit for which to reach higher.
There are two final groups to thank. To the retailers of all different shapes, sizes, and countries, thank you for believing in Zico and giving us a way to reach our consumers. Finally, to the millions of Zico drinkers, thank you for making space in your crowded lives for our little brand. You made this all possible and for that I will be forever grateful. I hope you will keep Zico as part of your lives but more importantly reach higher yourselves in everything you do.
INDEX
The page numbers in this index refer to the printed version of this book. The link provided will take you to the beginning of that print page. You may need to scroll forward from that location to find the corresponding reference on your e-reader.
Abbott, Geoff, 103–6
Ad Age, 182
Adina, 200
Alba, Jessica, 208
Allen Flavors, 39
Amacoco, 67, 71–75, 124, 125, 195
PepsiCo’s acquisition of, 182, 194–97
Amazon, 122, 124, 148
American Chamber of Commerce of El Salvador, 16
Andrade, David, 12–14
Apostolo, Pedro, 54
Apple, 135
Apple & Eve, 96
Apprentice, The, 190
Aquafina, 33
AriZona Iced Tea, 39
Banks, Carl, 190
Bello, John, 39, 200
Belsito, Jack, 144, 149
Ben & Jerry’s, 197
Berkshire Hathaway, 189
Beverage Digest, 184
beverage industry, 31–44, 135, 161
categories in, 38, 40
distributors in, see distributors
innovation in, 35, 37, 40
suppliers, consultants, and middlemen companies in, 39–40
Beverly Hills Four Seasons, 94
BevNET, 48
Big Geyser, 35, 40, 96–102, 107–13, 116–18, 120–22, 131, 134, 139–42, 144–47, 148–53, 158, 163–70, 173, 184, 199, 200, 203, 205
Bikoff, J. Darius, 46, 48
Blakely, Sara, 79, 190
bodegas, 35–36, 116, 117, 138
brands, 50–52
entrepreneurial, 197–98
Zico, 56–62
Branson, Richard, 44
Bravo, Hernan, 53–54, 77–79
Brazil, 67, 69–74, 101, 124, 194–95
Brodsky, Peter, 149
Buffett, Warren, 142, 189
Bündchen, Gisele, 190, 203
Burt’s Bees, 50, 51, 197
Cadbury, 33, 40
caffeine, 47
Canfield, Jack, 86
Carvajal, Mario, 53–54
Carvel, 178
Cascadia, 93
cash flow, 123–26, 137
celebrities, 191, 203–5
Central America, 21, 25, 41, 50, 53, 70, 71, 195
dairy industry in, 15
Central American Free Trade Agreement, 16
Chouinard, Yvon, 51
Clorox, 59, 197
Coca-Cola, 33, 47, 59
Coca-Cola Company, The, 33, 54, 139, 161, 175, 180, 182–85
Fuze purchased by, 142–43
Glacéau purchased by, 48, 143, 153
Honest Tea acquired by, 183–84, 197, 208
Venturing and Emerging Brands (VEB) team, 183–88, 191, 194, 202, 208
Vita Coco and, 185, 194, 196, 198
Vitaminwater acquired by, 143, 151, 168–69, 184, 192
Zico and, 181, 182, 184–201, 202–3, 205–14
coconuts, 24–26, 65–66
production of, 27, 69–71
coconut trees, 73
coconut water, 1–2, 6, 7, 23–26, 35, 41, 43–44, 66–69
categorization of, 38
Hispanic market and, 48–50
idea of marketing, 23–30, 45, 48–49
processing and transport of, 27, 67, 69–70
sugar added to, 66–67
coconut water brands, 44, 58
ONE, 173–74, 195
Vita Coco, see Vita Coco
Zico, see Zico
Colgate, 197
Collins, Jim, 22, 156
Conrad, Lauren, 203
corporate cultures, 154–55, 157, 161, 162, 163
corporate fraud, 162
Costa Rica, 4, 19–20, 24, 25
Costco, 114, 131, 205
Covey, Stephen, 85
Cox, Courteney, 203
Crawford, Candace, 206, 210
dairy industry in Central America, 15
Damon, Matt, 189, 190, 193
Dasani, 33
Dean Foods, 15
De Niro, Robert, 166
distributors, 40, 96, 122–23, 125, 131, 167–70
Big Geyser, see Big Geyser
Exclusive Beverages, 139–42, 144, 198–99
UNFI, 96, 122–23, 140, 141
Dr Pepper, 33
Dr Pepper Snapple Group (DPSG), 33, 198–99
Dunkin’ Donuts, 178
El Salvador, 3, 4, 5, 12–14, 20, 23, 37, 76, 81, 93, 102, 104, 134