May 26 Soft drink maker PepsiCo Inc is
in talks to acquire All Market Inc, the owner of coconut water
brand Vita Coco, whose celebrity investors include Madonna and
Matthew McConaughey, people familiar with the matter said on
The acquisition would help PepsiCo diversify its offerings
as it grapples with stagnant sales, amid a shift of many
consumer tastes' away from sugary drinks and snacks toward
Purchase, New York-based PepsiCo has offered less than the
$1 billion that All Market's owners have been seeking to sell
the company, and there is no certainty that negotiations will
result in a deal, the people said.
The sources spoke on condition of anonymity because the
negotiations are confidential. PepsiCo did not respond to a
request for comment, while Vita Coco declined to comment.
Founded in 2004 by two childhood friends in New York, Vita
Coco now has sales in 30 countries and is the global leader in
coconut water, with a 26 percent share of a market worth $2.5
billion, according to data tracker Euromonitor International.
Extracted from young, green coconuts, coconut water now
enjoys prime placement in coolers across North America and
Verlinvest, the family office of one of the Belgian families
related to brewer Anheuser Busch InBev NV, took a stake
in All Market in 2007. Singer Madonna and actors McConaughey and
Demi Moore are among other investors in the company.
In 2014, All Market sold a 25 percent stake to T.C. Pharma,
the owner of Red Bull China, in a deal that brought the drink to
the world's most populous country. That deal valued All Market
at $665 million.
As part of its healthy initiative program, Pepsi announced
late last year that it aims to have sales of its "everyday
nutrition" products, including grains, dairy and hydration,
outpace the rest of its products by 2025.
PepsiCo, which also owns Quaker Oats oatmeal, Frito-Lay
chips, energy drink Gatorade and orange juice Tropicana, has
looked to acquisitions to boost its healthier offerings before.
Its latest acquisition in the healthy drinks sector was
probiotic drinks maker KeVita Inc, which it agreed to buy last
year. In January, PepsiCo competitor Dr Pepper Snapple Group Inc
acquired antioxidant beverages maker Bai Brands LLC for
(Reporting by Lauren Hirsch and Greg Roumeliotis in New York;
Additional reporting from Martinne Geller in London; Editing by