PepsiCo ups investment in O.N.E. coconut water

by Eric Schroeder
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PURCHASE, N.Y. — PepsiCo, Inc. announced it has increased its investment in O.N.E., a move that gives PepsiCo a majority stake in the Los Angeles-based coconut water company. Financial terms of the transaction were not disclosed.

This move represents a second round of investment in O.N.E. by PepsiCo and Catterton Partners, a private equity firm based in Greenwich, Conn., and it is expected to allow for distribution of the full line of O.N.E. coconut water-based beverages beyond the current predominantly warehouse distribution to include expanded direct-store delivery distribution through PepsiCo’s bottling arm, Pepsi Beverages Co., in 2011. The companies earlier invested in O.N.E. in September 2009.

“We are very excited to deepen our relationship with PepsiCo and Catterton Partners,” said Rodrigo Veloso, founder and chief executive officer of O.N.E. “With demand, supply, distribution, consumer education, and the capital to fuel them all lining up, we expect 2011 to be the year that coconut water goes mass market.”

Massimo d’Amore, c.e.o. of PepsiCo Beverages Americas, added, “Coconut water is one of the fastest growing categories in the U. S. beverage market and one in which we see a great deal of potential. Our investment in O.N.E. is an investment in the future. 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.”

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