Report: PepsiCo in Talks to Acquire Coconut Water Brand

The maker of Pepsi and Mountain Dew reportedly hopes to acquire the world's largest coconut water brand amid continued struggles in soft drink sales.

Reuters, citing unnamed sources familiar with the matter, reported that PepsiCo was in talks with All Market Inc., the maker of Vita Coco coconut water.

The soft drink giant, however, offered less than the $1 billion asking price for All Market and the talks might not produce an agreement between the companies.

Vita Coco represents just more than one quarter of the global market for coconut water, which is extracted from young coconuts. High-profile investors in All Market include singer Madonna, actors Matthew McConaughey and Demi Moore, the owner of Red Bull China and a Belgian family affiliated with Anheuser Busch InBev.

The talks follow PepsiCo's purchase of probiotic drinks maker KeVita last year. PepsiCo, like other soft drink companies, is seeking to broaden its drink offerings to appeal to more health-conscious consumers.