A PepsiCo Vita Coco acquisition may be in the pipeline. Talks are proceeding between All Market Inc. and PepsiCo regarding the sale of All Market to the Pepsi Cola manufacturer. Coconut water is becoming increasingly more popular, and PepsiCo believes it to be a profitable addition to its range of healthy options.
A number of celebrities have invested in Vita Coco, including Matthew McConaughey and Madonna. By acquiring this brand, PepsiCo hope to revitalize a stagnating company whose products are under threat by the shift away from sugary drinks. However, the Vita Coco sale is not certain.
However, one issue that may hamper the takeover is that PepsiCo is offering less than the asking price. The owners of All Market have been looking for $1 billion dollars for the company. PepsiCo has not yet decided to pay this amount. For that reason, the deal may or may not go ahead depending on where both companies are prepared to meet.
However, neither company will discuss the prospective deal publicly so we are unsure where they stand on the matter. Vita Coco is the global leader of sales in the $2.5 billion coconut water market. It is a growing market, and the personal health industry is promoting it as a good alternative to sugary drinks such as Coke and Pepsi Cola. Therefore, it would be a good contemporary addition to the PepsiCo range.
Current investors in the company include actors Matthew McConaughey and Demi Moore and also Madonna. Velinvest is another. This firm is related to Anheuser Busch InBev NV, the Belgian brewing company. A stake in the firm was sold to T.C. Pharma who own Red Bull China. The value of All Market was $665 million at that time. Now it wants $1 billion.
Pepsi is going healthier. The company realizes the necessity to invest in the health drinks market. The current healthier eating and drinking push makes the company’s sales of sugary drinks very precarious.
Not too precarious however! PepsiCo owns Quaker Oaks and also Gatorade and Tropicana orange juice. Pepsi recently acquired KeVita Inc., the probiotics drinks manufacturer. The company is getting increasingly more involved in marketing healthy options, and not just Pepsi Cola.
Whether the PepsiCo acquisition talks with All Market Inc. come to anything remains to be seen. Much will depend on Pepsi’s offer and what the makers of Vita Coco are prepared to accept.
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