PepsiCo is in talks to acquire All Market, owner of coconut water brand Vita Coco, people familiar with the matter told CNBC.
Multiple parties have expressed interest in making a bid for the company, whose celebrity investors include Madonna and Matthew McConaughey, these people said.
A potential deal could be more than a month away, the sources said.
Reuters first reported the merger discussions last week.
Coconut water has been a growing segment within the beverage category, and Vita Coca is the largest player in the space. According to Euromonitor International, it has a 26 percent share of a market worth $2.5 billion.
Pepsi has been working to diversify its portfolio to include beverages with a healthier profile as consumers shift away from sugary soft drinks.
In addition to its celebrity investors, Verlinvest, the family office of one of the Belgian families tied to brewer Anheuser-Busch InBev, holds a stake in All Market.
Officials at Pepsi and Vita Coco weren't immediately available to comment.