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Vita Coco looking for takers at $1 billion

World’s best-selling coconut water, Vita Coco is looking for takers at a value of up to $1 billion. The high profile parent company with celebrity investors including Matthew McConaughey and Madonna, however, has not yet responded to media reports that it has hired JP Morgan to advise it on the sale. The U.S. based company expects industry giants PepsiCo and Coca-Cola to get involved in the matter as recent market trends illustrates abundant prospect for health drinks over traditional fizzy drinks. Pepsi and Coca-Cola are currently the producers of No 2 and No 3 selling coconut water.

Vita Coco which has a market value of $ 2.5 billion with an industry penetration of 26 percent was initiated in 2004 by two friends in New York. Since then the company has expanded to over 30 countries and was rated as the world’s fastest-growing cold drink brand with 19 percent sales hike in last year by data tracker Euromonitor International.

Euromonitor analyst Howard Telford said: “The surging demand for packaged, convenient and enhanced water products is the new engine for the beverages industry. Energy drinks, ready-to-drink brewed beverages and super-premium juices – most notably, coconut water – were all top global performers.”

In the recent years, many top beverage companies around the world has invested in Vita Coco. Private investment company Verlinvest, which has close connections with Anheuser Busch InBev took stake in Vita Coco in 2007. Red Bull China bought 25 percent of Vita Coco shares for $665 million in 2014.

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