The film was competing with "Loving Vincent", "The Boss Baby", "Ferdinand", and "The Breadwinner".
The acclaimed Dia de Los Muertes (Day of the Dead)-themed blockbuster is directed by Lee Unkrich and co-directed by Adrian Molina. Unkrich has previously received an Academy Award for "Toy Story 3".
"With 'Coco,' we tried to take a step forward toward a world where all children can grow up seeing characters in movies that look and talk and live like they do. Marginalized people deserve to feel like they belong. Representation matters," Unkrich said while accepting the trophy.
"Thank you to the Academy. 'Coco' has proved that art can change and connect the world. It can only be done when we have a place for everyone and anyone, who feels like an other to be heard," Pixar's Darla K Anderson said.
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"Coco" tells the story of an aspiring musician (Miguel) who has to face his family's prejudices against music. On the Day of the Dead, he ventures into the Land of the Dead and encounters his ancestor, a legendary singer.
Anthony Gonzalez, Gael Garcia Bernal and Benjamin Bratt have lent their voices to the film.
"Coco" dominated the award season in the animation category as it fetched all the major awards, including a Golden Globe and BAFTA, making it a sure shot winner in the category at the Oscars.
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