PepsiCo reportedly is looking to buy the company that owns the popular coconut water brand Vita Coco.
The beverage titan is in talks to buy All Market, which counts celebrities among its investors, according to Reuters. The potential acquisition price cited by sources was less than the $1 billion that the owners are after.
Coconut water is a hot beverage trend, promoted by numerous stars, social-media darlings and health gurus. It's the electrolyte-filled liquid extracted from young coconuts.
As soda consumption decreases, the manufacturers are looking elsewhere to retain customers. Pepsi owns Gatorade, Tropicana, Aquafina and Naked -- along with non-beverage brands like Quaker Oats and Doritos. Coca-Cola has Dasani, Minute Maid and Powerade. The Dr Pepper Snapple Group shows its widening reach in its name; the company also includes Bai, Mott's and Nantucket Nectars.
"Coconut water is very popular. It’s an attractive thing to have in your portfolio," said Lars Perner, assistant professor of clinical marketing at the University of Southern California. "If you want to grow as a company, you have to expand beyond your core."
Last year for the first time, bottled water outsold soda in the United States, according to Beverage Marketing, a research and consulting company. Americans purchased 12.8 billion gallons of bottled water -- and 12.4 billion gallons of carbonated soft drinks.
According to the Vita Coco Web site, they also sell coconut oil, which is used in baking and beauty regimens, and coconut milk.
