PepsiCo to Enter Coconut Water Market

(MoneyWatch)  PepsiCo has agreed to purchase Brazil's largest producer of coconut water, which is a popular drink not only in Latin America but also in India, Southeast Asia and other parts of the world. For an undisclosed sum, PepsiCo will buy Amacoco, which produces Brazil's leading coconut water brands Kero Coco and Trop Coco.

Consumers have been drifting away from carbonated soft drinks in favor of things like energy drinks and vitamin waters, so beverage companies have been on the lookout to expand their offerings.

"Amacoco will complement our current business and enhance our growth prospects throughout Latin America and beyond," said PepsiCo Americas Beverages CEO Massimo d'Amore. "Even in the nascent US market, coconut water sales are enjoying extraordinary growth."

Coconut water has been steadily gaining attention in the U.S. over the past couple of years. It's like a natural sports drink, providing carbs and electrolytes as well as hydration -- though it currently costs a bit more than Gatorade and similar beverages.

It's unclear whether PepsiCo will ever offer its new coconut water products in the U.S., but it will definitely export from Brazil to neighboring countries in Latin America. Overall, PepsiCo has said it plans to invest $3.3 billion in Latin America over the next few years.