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PepsiCo now in talks to acquire Vita Coco owner

  • Multiple parties have been interested in buying All Market, owner of coconut water brand Vita Coco, sources tell CNBC.
  • A potential deal could be more than a month away, the sources said.
Vita Coco coconut water, manufactured by Ducoco Produtos Alimenticios S/A
Andrew Harrer | Bloomberg | Getty Images

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.

T.C. Pharma, owner of Red Bull China, also acquired a 25 percent stake in All Market in 2014. That deal helped bring the Vita Coca brand to China.

Officials at Pepsi and Vita Coco weren't immediately available to comment.