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Pepsi Dips Into UK Water War |
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Thursday, 01 May 2008 |
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 Glacéau, maker of Vitaminwater and Smartwater, for $4.1 billion. Glacéau posted triple-digit growth in volume in 2007 and is in the early stages of an international rollout, reaching Australia in the first quarter.
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 UK 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.
Glacéau's Vitaminwater is scheduled to launch in London this summer, said Nina Fiddian-Green, director of Glacéau 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.
Copyright 2008 The Atlanta Journal-Constitution |
