PepsiCo ups investment in coconut water firm to majority stake
Coconut water has attracted a lot of attention in the US as the drink is seen as a healthy alternative to the big energy drinks that have traditionally dominated the sports drink market. Fitness enthusiasts look to the low-calorie drink for its natural electrolytes, vitamins and minerals.
Both Coca-Cola and PepsiCo invested in the coconut water market last year, buying shares in niche producers in North and South America.
PepsiCo has now increased its investment in O.N.E, acquiring a majority stake in the California-based coconut water company.
Massimo d'Amore, CEO PepsiCo Beverages Americas, said: “Since we first invested in O.N.E., just over a year ago, the company has demonstrated to us that they have what it takes to succeed - a great product, a strong brand, experienced leadership, deep understanding of the marketplace and robust supply.”
On the subject of supply, PepsiCo said this has been a limiting factor for coconut water producers in 2010. But the company said O.N.E. has successfully addressed the issue by developing strong partnerships with three of the largest coconut processors in the world, based in the Philippines and Indonesia.