• The Wall Street Journal (subscription required), Wednesday, April 25, 2007 12:37 PM

No deal has been reached, but Coca-Cola is in talks with Glacéau, which makes the popular Vitaminwater brand that helped pioneer and popularize enhanced water, one of the industry's hottest categories. It's not clear whether Coke wants to acquire Glacéau outright or buy a substantial stake. Negotiations still could fall apart.

Glacéau, of Whitestone, N.Y., could be a good fit for Coke as it tries to reverse sales declines in its U.S. business and improve its non-soda lineup. Coke has been working to develop new waters and teas internally, while ramping up its search for acquisitions. In February, Coke acquired Fuze Beverage, an Englewood Cliffs, N.J., maker of energy, tea and vitamin-enhanced drinks.

Coke also has held talks with executives at Arizona Beverage Co., Lake Success, N.Y., about the possible acquisition of Arizona teas, according to sources. Representatives of Arizona Beverage and Glacéau could not be reached to comment.

Read the whole story at The Wall Street Journal (subscription required) »