PepsiCo partners with GNC to develop coconut water

PepsiCo and GNC, a retailer of nutritional products, have signed a joint venture agreement to develop and sell fortified coconut water products under a new brand name, "Phenom." The products are expected to be available first through GNC during the second quarter of 2011, before a wider release in the U.S.

PepsiCo, the chief rival to Coca-Cola Co., recently worked with GNC to launch "G Series Pro," a version of Gatorade aimed specifically at serious athletes. The new coconut water brand is meant to appeal to consumers focused on health and wellness.

Coca-Cola already has moved into the coconut water category, which is small but one of the fastest growing niches of the beverage industry. Last year, Coca-Cola grabbed a minority stake in Zico, a seller of coconut water, for less than $15 million.