PepsiCo unit seeks joint venture partners for coco water

MANILA, Philippines - One Natural Experience (ONE), a company controlled by food and beverage giant PepsiCo, is looking for joint venture partners who are willing to supply coconut water for export to the United States.

A Trade official, who spoke under the condition of anonymity, said that the firm is now looking for viable partners that are willing to supply 10 containers of coco water monthly. The official said he does not know the exact size of the container but it is “sizeable.”

For 2010, the Philippine Coconut Authority (PCA) said that the Philippines was able to produce 16 million metric tons of coconut. Unfortunately, the PCA does not have any estimate as to how much coconut will be harvested this year. It is likewise unclear if the Philippines can supply the demand of One Natural Experience.

The coconut water will be sold in the United States in ready to drink packs. The firm One Natural Experience will maintain their brand but Pepsi will distribute the product for them.

Last December, Pepsi, one of the world’s largest food and beverages companies, and ONE, the Los Angeles, Calif.-based coconut water company, announced that PepsiCo has increased its investment in ONE, thereby acquiring a majority stake in the company.

“We are very excited to deepen our relationship with PepsiCo and Catterton Partners. 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,” commented ONE founder and CEO, Rodrigo Veloso.

“Coconut Water is one of the fastest growing categories in the US beverage market and one in which we see a great deal of potential. Our investment in ONE is an investment in the future,” commented Massimo d’Amore, CEO, PepsiCo Beverages Americas. “