On the Street -- PepsiCo Buys Coconut Water Business
August 15/Business Monitor International Ltd. (BMI) -- Soft drink giant PepsiCo has announced the acquisition of Brazilian coconut water producer Amacoco Nordeste and Amacoco Sudeste (Amacoco) for an undisclosed fee. The move increases PepsiCo's exposure to the attractive Brazilian soft drinks sector, which beyond 2009 is expected to register rapid growth and can also be seen as an attempt to diversify into healthier soft drink varieties, with the possibility of PepsiCo now focusing on the coconut water category in other markets, including Europe and North America.
Amacoco is Brazil's leading producer of coconut water, making the brands Kero Coco and Trop Coco that together account for the majority of packaged coconut water sales. PepsiCo has said it will build on Amacoco's existing network of independent distribution while utilizing the strength of its local distribution system to expand sales across Brazil, as well as other markets worldwide. The firm also suggested that the combination of Amacoco's expertise in coconut water with its own brand portfolio and research and development capabilities creates the potential for very exciting product innovation.