PepsiCo is making plans to add a vitamin-enhanced and flavoured extension to its bottled water brand Aquafina, according to an analyst's report.

In a research note, Goldman Sachs & Co analyst Marc Cohen said the soft drinks giant has developed Aquafina Essentials, an enhanced version of its current water product.

The product, the note says, is set for a regional launch early next year and a possible national roll-out for late 2002.

Cohen said the Essentials strategy was a "little surprising" given Aquafina's current brand position as a "pure" water with no additives. He added that he had expected Pepsi to explore the launch of an entirely new brand idea and product.

However he went on to say that such a move could help Pepsi maintain Aquafina's high profitability.

A Pepsi spokesman was quoted by the Wall Street Journal as saying: "Enhanced waters are a product of interest among consumer, but it would be premature to discuss anything specific."