The Pepsi Bottling Group has signed an agreement with CytoSport to distribute protein-enhanced functional beverage Muscle Milk in the US.

Under the terms of the agreement, Pepsi Bottling Group (PBG) will have a licence to distribute the ready-to-drink line of Muscle Milk and Muscle Milk Light in its territories in the US and Canada.

The agreement is effective immediately and PBG will begin distribution in the US in January. Financial terms of the transaction were not disclosed.

"Strengthening and diversifying the PBG product portfolio is one of our top priorities," said PBG North America president Rob King. "By teaming up with CytoSport, we are entering a new beverage segment with attractive long-term growth prospects.

"Muscle Milk has established itself as one of the leading functional nutrition beverage brands, and adding it to our portfolio will enable us to capitalise on the opportunities in this exciting category."