PepsiCo reportedly nears deal to buy KeVita
PepsiCo, which already owns a minority interest in probiotic drinks firm KeVita, is reportedly nearing an agreement to acquire it altogether.
The move is part of PepsiCo's plans to diversify its soft drink portfolio beyond the fizzy sodas. It is also targeted towards consumers who are getting more and more health conscious while being well aware of the ill effects caused by sugary drinks.
KeVita, based in Oxnard, California makes sparkling probiotic drinks which are claimed to aid in digestion and boosting immunity.
PepsiCo already has a distribution agreement with KeVita which lets it understand the market demand for the brand.
As of now, there are no official confirmations of any such deal from either PepsiCo or KeVita but several sources have reported that negotiations are taking place in the background.
While most indications are that the acquisition is most likely to be done, there is also every possibility that the deal may not happen as well with some reports adding that KeVita is likely to be valued less than $500m.
Last month, KeVita had rolled out three new flavors in Dragonfruit Lemongrass, Mango Habanero, and Citrus to expand its portfolio of fermented probiotic and kombucha beverage category.
Prior to that, in August, KeVita had launched three new cleansing probiotic tonic flavors - Turmeric Ginger, Cinnamon and Chili Ginger Lime to join its line of cleansing probiotic apple cider vinegar tonics.
KeVita if acquired would join PepsiCo’s other healthier beverage offerings in the form of Naked Juice and O.N.E Cocunut Waters.
The soft drink company is currently facing a lawsuit against Naked Juice for alleged misrepresentation of the nutrient information of the product.
Image : PepsiCo is reportedly in talks to acquire KeVita. Photo Courtesy of PRNewsFoto/KeVita.