Pepsi Bottling Signs Deal To Distribute O.N.E. Brand

   DOW JONES NEWSWIRES 
 

Pepsi Bottling Group Inc. (PBG) has signed an agreement to distribute O.N.E. beverages in southern California and south Florida starting in the fourth quarter.

At the same time, Pepsi Bottling and private-equity firm Catterton Partners invested an undisclosed amount in O.N.E., which was established in 2005 by a Brazilian entrepreneur, who launched its O.N.E. Coconut Water a year later.

"This agreement with O.N.E. gives us access to a strong brand with attractive growth potential in the emerging coconut water segment," said Pepsi Bottling executive Rob King.

The company, which is PepsiCo Inc.'s (PEP) biggest bottler, is in the process of being acquired by the beverage and snack-food giant. The O.N.E. deal comes as privately held coconut-water maker ZICO recently said it raised $15 million from a number of investors, including Coca-Cola Co. (KO).

Coconut-water brands have been attracting more attention from the big beverage companies looking for healthy drink offerings. Pepsi recently agreed to buy Amacoco, Brazil's largest coconut-water company.

-By Joan Magee, Dow Jones Newswires; 212-416-2673; [e-mail]