PepsiCo to acquire Brazilian coconut water company
August 12, 2009
by FoodBusinessNews.net Staff
PURCHASE, N.Y. — PepsiCo, Inc. has agreed to acquire Amacoco Nordeste Ltda., Brazil’s largest coconut water company. Amacoco makes and sells the coconut water brands, Kero Coco and Trop Coco, which are regarded by consumers as healthy, refreshing hydration drinks. Together they account for the bulk of packaged coconut water sales in the country. Terms of the agreement were not disclosed.
"We’re delighted to welcome Amacoco into the PepsiCo family," said Massimo d’Amore, chief executive officer of PepsiCo Americas Beverages. "Amacoco is an outstanding company that I have known and admired for a long time. Amacoco will complement our current business and enhance our growth prospects throughout Latin America and beyond. Even in the nascent U.S. market, coconut water sales are enjoying extraordinary growth."
The agreement includes two manufacturing facilities, one in Petrolina in the state of Pernambuco in Northeast Brazil and a recently opened plant in Sao Mateus in the state of Espirito Santo in the Southeast. In addition, the transaction includes exclusive contracts to ensure the supply of coconut water from partners with longstanding expertise in coconut planting and harvesting.
Kero Coco and Trop Coco are currently distributed by a network of independent distributors. PepsiCo said it will build on the existing network and will utilize the strength of its local distribution system to expand sales across Brazil, as well as to other markets worldwide.