Vita Coco, the world’s leading brand of coconut water, is exploring a sale of the company that could value it at up to $1 billion, according to sources familiar with the matter.
Vita Coco’s parent company — whose investors include celebrities Madonna and Matthew McConaughey — has hired JP Morgan to advise it on a sale, three sources said. They declined to be identified as the matter is private.
Any sale of U.S.-based Vita Coco would come as traditional fizzy drink sales continue to slow and consumers increasingly turn to healthier drinks like coconut water.
The business could attract interest from beverage companies such as PepsiCo (PEP.N), Coca-Cola (KO.N) or Dr Pepper Snapple (DPS.N), which late last year paid $1.7 billion for anti-oxident drink maker Bai Brands. PepsiCo and Coke are already the No. 2 and 3 producers of coconut water.