PepsiCo has made its first foray into water in the UK with the acquisition of vitamin water brand V Water.

The purchase of the £1.2m-selling brand, which pitches it against Coca-Cola in the niche category, would "create significant opportunities" for PepsiCo, said Garrett Quigley, general manager for the UK & Ireland. He added that the company planned to expand the range .

Founders Walter Faulstroh and Chris Coleridge, who set up the brand in 2004, will remain at the helm, reporting directly to Quigley.

The brand will go head to head with Coca-Cola's Glacéau brand . Coca-Cola, which bought the New York water brand for $4.1bn (£2.1m) last May, is rolling out the brand's six-strong Vitaminwater range in the UK this summer.

V Water will now switch production from Glenpatrick in Ireland to Britvic, which already manufactures, sells and distributes other PepsiCo brands, including Pepsi, 7Up and Gatorade.