PepsiCo has signed a deal to acquire both divisions of Brazil's largest coconut water company, Amacoco Nordeste and Amacoco Sudeste, for an undisclosed fee.

The deal marks PepsiCo's first step into the "fast-growing market for coconut water" in Brazil, it said today (12 August).

Amacoco makes and sells Brazil's top-selling coconut water brands, Kero Coco and Trop Coco.

"Coconut water represents one of the fastest growing beverage categories due to its natural hydrating qualities, great taste and nutritional benefits," said PepsiCo.

Luis Montoya, president of Latin America Beverages, a division of Pepsi Americas Beverages, said: "This transaction reflects PepsiCo's long-term commitment to investing in Brazil and other major Latin American markets."

He added: "Within the last year, PepsiCo has announced plans to invest more than US$3.3bn in Latin America over the next several years."

The Amacoco deal includes two manufacturing facilities, one in Petrolina in the state of Pernambuco, in Northeast Brazil, and a recently opened plant in Sao Mateus in the state of Espirito Santo, in the Southeast.

Massimo d'Amore, CEO of PAB, hinted that PepsiCo may look to expand coconut water's popularity beyond Brazil.

"Combining Amacoco's expertise in naturally healthy coconut water with PepsiCo's strong brand portfolio and R&D capabilities creates the potential for very exciting product innovation," he said.

PepsiCo will use its distribution network to expand sales of Amacoco brands worldwide, as well as in Brazil, the group said.

Last week, PepsiCo agreed a deal to buy both of its major bottlers for a combined $7.8bn.