PepsiCo Agrees to Acquire Amacoco, Brazil's Largest Coconut Water Company
PURCHASE, N.Y., Aug. 12 /PRNewswire-FirstCall/ -- PepsiCo, Inc. (NYSE: PEP) announced today it has agreed to acquire Amacoco Nordeste Ltda. and Amacoco Sudeste Ltda. (Amacoco), Brazil's largest coconut water company. The agreement is the most recent step in PepsiCo's strategic transformation of its beverage portfolio and marks the company's entry into the fast-growing market for coconut water, a source of natural hydration popular in Brazil and dozens of other countries.
Amacoco makes and sells Brazil's top-selling coconut water brands, Kero Coco and Trop Coco, which are highly regarded by consumers as healthy, refreshing hydration drinks. Together they account for the bulk of packaged coconut water sales in the country, making PepsiCo the category leader.
"We're delighted to welcome Amacoco into the PepsiCo family," said Massimo d'Amore, chief executive officer of PepsiCo Americas Beverages (PAB). "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.
"Combining Amacoco's expertise in naturally-healthy coconut water with PepsiCo's strong brand portfolio and R&D capabilities creates the potential for very exciting product innovation. This transaction also brings a process for ensuring a level of product quality and consistency -- from raw coconut to finished product -- that most other coconut water brands cannot match."
Coconut water represents one of the fastest growing beverage categories due to its natural hydrating qualities, great taste and nutritional benefits. It is a great source of nutrients, particularly for people who lead active lifestyles. It contains calcium and magnesium, and the same amount of heart healthy potassium as a banana or a glass of orange juice.
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 assure a supply of high-quality 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 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.
"Amacoco's brands are already very strong in Brazil, and we will harness PepsiCo's expertise in marketing, production and distribution to accelerate the momentum behind Kero Coco and Trop Coco," said Luis Montoya, president, Latin America Beverages, a division of PAB. "This transaction reflects PepsiCo's long-term commitment to investing in Brazil and other major Latin American markets. It follows the acquisitions of Brazilian snack company Comercio de Doces Lucky Ltda., maker of the popular brands Torcida and Fofura, and leading Peruvian snack business Karinto S.A.C., maker of the top-selling Los Cuates corn chips as well as a popular line of nuts and seeds. Within the last year, PepsiCo has announced plans to invest more than $3.3 billion in Latin America over the next several years."
The transaction is subject to approval by Brazil's regulatory authority. Terms of the transaction were not disclosed.
PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 18 different product lines that each generate more than $1 billion in annual retail sales. Our main businesses - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade - also make hundreds of other nourishing, tasty foods and drinks that bring joy to our consumers in over 200 countries. With more than $43 billion in 2008 revenues, PepsiCo employs 198,000 people who are united by our unique commitment to sustainable growth, called Performance with Purpose. By dedicating ourselves to offering a broad array of choices for healthy, convenient and fun nourishment, reducing our environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to our communities worldwide. For more information, please visit www.pepsico.com.
Statements in this release that are "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. They inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: PepsiCo's ability to consummate the acquisitions of The Pepsi Bottling Group, Inc. ("PBG") and PepsiAmericas, Inc. ("PAS") and to achieve the synergies and value creation contemplated by the proposed acquisitions; PepsiCo's ability to promptly and effectively integrate the businesses of PBG, PAS and PepsiCo; the timing to consummate the proposed acquisitions and any necessary actions to obtain required regulatory approvals; the diversion of management time on transaction-related issues; changes in demand for PepsiCo's products, as a result of shifts in consumer preferences or otherwise; increased costs, disruption of supply or shortages of raw materials and other supplies; unfavorable economic conditions and increased volatility in foreign exchange rates; PepsiCo's ability to build and sustain proper information technology infrastructure, successfully implement its ongoing business process transformation initiative or outsource certain functions effectively; damage to PepsiCo's reputation; trade consolidation, the loss of any key customer, or failure to maintain good relationships with PepsiCo's bottling partners, including as a result of the proposed acquisitions; PepsiCo's ability to hire or retain key employees or a highly skilled and diverse workforce; changes in the legal and regulatory environment; disruption of PepsiCo's supply chain; unstable political conditions, civil unrest or other developments and risks in the countries where PepsiCo operates; and risks that benefits from PepsiCo's Productivity for Growth initiative may not be achieved, may take longer to achieve than expected or may cost more than currently anticipated.
For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE PepsiCo, Inc.
SOURCE: PepsiCo, Inc.
Web site: http://www.pepsico.com/