PepsiCo Inc. announced Wednesday it had bought V Water, a London-based line of enhanced waters, giving it a direct European competitor to Coca-Cola Co.'s Vitaminwater.
Last year, Atlanta-based Coke bought Glaceau, maker of Vitaminwater and Smartwater, for $4.1 billion. Glaceau posted triple-digit growth in volume in 2007 and is in the early stages of an international rollout, reaching Australia in the first quarter.
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Pepsi, based in Purchase, N.Y., did not release details on the price it paid for V Water. The company said the deal followed its strategy of launching and acquiring products to meet health-conscious consumer demands.
"V Water provides us with a strong platform for expansion into a fast-growing market and reflects PepsiCo's global commitment to transforming our portfolio of products and extending our range of healthier beverages," said PepsiCo U.K. and Ireland General Manager Garrett Quigley in a statement.
V Water and Vitaminwater are strikingly similar in name, appearance and description. They both offer a variety of flavors enhanced with combinations of vitamins designed for different purposes.
Glaceau's Vitaminwater is scheduled to launch in London this summer, said Nina Fiddian-Green, director of Glaceau international communications. She indicated little concern for Pepsi's purchase of V Water.
"What's V Water?" she asked.
The move, though, is designed to give Pepsi a counter to Vitaminwater as the Coke brand makes its way to Europe, said John Sicher, editor and publisher of Beverage Digest.
Pepsi likely will not bring V Water to the United States, he said. Pepsi already offers SoBe Life Water, another enhanced water drink, in the U.S.
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