PepsiCo Increases Investment in O.N.E., One Natural Experience

Dec 08, 2010, 17:00 ET from PepsiCo, Inc.

PURCHASE, N.Y. and LOS ANGELES, Dec. 8, 2010 /PRNewswire-FirstCall/ -- PepsiCo, Inc. (NYSE: PEP), one of the world's largest food and beverages companies, and O.N.E., the Los Angeles, Calif.-based coconut water company, announced today that PepsiCo has increased its investment in O.N.E., thereby acquiring a majority stake in the company. The terms of the transaction were not disclosed. This represents a second round of investment in O.N.E. by PepsiCo and Catterton Partners, a private equity firm based in Greenwich, Conn.

"We are very excited to deepen our relationship with PepsiCo and Catterton Partners. With demand, supply, distribution, consumer education, and the capital to fuel them all lining up, we expect 2011 to be the year that coconut water goes mass market," commented O.N.E. Founder and CEO, Rodrigo Veloso.

"Coconut Water is one of the fastest growing categories in the U. S. beverage market and one in which we see a great deal of potential. Our investment in O.N.E. is an investment in the future," commented Massimo d'Amore, CEO, PepsiCo Beverages Americas. "Since we first invested in O.N.E., just over a year ago, the company has demonstrated to us that they have what it takes to succeed – a great product, a strong brand, experienced leadership, deep understanding of the marketplace and robust supply."

Supply had been a limiting factor for coconut water producers in 2010, but O.N.E. has successfully addressed the issue by developing strong partnerships with three of the largest coconut processors in the world, based in the Philippines and Indonesia.

With the investment, distribution of the full line of O.N.E. coconut water-based beverages – including O.N.E.™ Coconut Water, O.N.E.™ Active, and O.N.E.™ Kids – will extend beyond the current predominantly warehouse distribution to include expanded DSD distribution through PepsiCo's bottling arm, Pepsi Beverages Company, in 2011.

About O.N.E., One Natural Experience

O.N.E.™ is the premier, all-natural beverage company established in 2005 by Rodrigo Veloso – a visionary instrumental in creating a whole new category of functional beverage in the U.S.  Their award winning and #1 selling coconut water is fast-becoming recognized as America's healthiest beverage for providing enhanced hydration, essential nutrition and all five essential electrolytes (calcium, potassium, magnesium, phosphorous and sodium). O.N.E.™ drinks are packaged in environmentally friendly Tetra Pak cartons underscoring the company's deep commitment to the Earth.  O.N.E.™ is a founding member of Conscious Capitalism (consciouscapitalism.com) and dedicated to using its business platform of conscious capitalism to educate consumers about the importance of proper hydration in all stages and phases of life--especially for mothers and children.  As such, it supports several nonprofit organizations – most importantly Healthy Child Healthy World (www.healthychild.org). It is also collaborating with the Alliance for a Healthier Generation, an initiative that supports schools nationwide in developing healthier environments with the goal of reversing the trend of childhood obesity. The Alliance for a Healthier Generation is a partnership between the American Heart Association and the William J. Clinton Foundation.   O.N.E.™ is available in over 14,000 retail outlets including Whole Foods, Publix, Kroger Stores, Cost Plus World Markets, Vitamin Shoppe and on Amazon.com.

About PepsiCo

PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 19 different product lines that each generates more than $1 billion in annual retail sales.  Our main businesses - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade - also make hundreds of other nourishing, tasty foods and drinks that bring joy to our consumers in more than 200 countries.  With annualized revenues of nearly $60 billion, PepsiCo's people are united by our unique commitment to sustainable growth, called Performance with Purpose.  By dedicating ourselves to offering a broad array of choices for healthy, convenient and fun nourishment, reducing our environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to our communities worldwide.  In recognition of its continued sustainability efforts, PepsiCo was named for the third time to the Dow Jones Sustainability World Index (DJSI World) and for the fourth time to the Dow Jones Sustainability North America Index (DJSI North America) in 2009. For more information, please visit www.pepsico.com.

About Catterton Partners

With more than $2.5 billion under management, Catterton Partners is the leading consumer-focused private equity firm in North America.  Since its founding in 1989, Catterton has leveraged its investment capital, strategic and operating skills, and network of industry contacts to establish one of the strongest private equity investment track records in the middle market consumer industry.

Catterton Partners invests in all major consumer segments, including Food and Beverage, Retail and Restaurants, Consumer Products and Services, and Media and Marketing Services.  Representative investments that Catterton Partners has led include Cheddar's Restaurants, Sweet Leaf Tea, Nature's Variety Pet Food and Restoration Hardware.  Representative realized investments include Baja Fresh Mexican Grill, Build-A-Bear Workshop, Frederic Fekkai, Kettle Foods, Odwalla, P.F. Chang's China Bistro and Wellness Pet Food.

More information about the consumer-focused private equity firm can be found at http://www.cpequity.com.

Forward-Looking Statements

This press release (including information incorporated or deemed incorporated by reference herein) contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projections as well as the current beliefs and assumptions of our management. Words such as "outlook", "believes", "expects", "appears", "may", "will", "should", "anticipates", or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact, including estimates, projections, future trends and the outcome of events that have not yet occurred, is a forward-looking statement.  Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements.  Factors that might cause or contribute to such differences include, but are not limited to, those discussed under the section entitled "Risk Factors" in our reports filed with the SEC.  Many of such factors relate to events and circumstances that are beyond our control.  You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.

SOURCE PepsiCo, Inc.



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