PepsiCo, Purchase, NY, and GNC, Pittsburgh, PA, have signed a joint venture agreement to develop and sell fortified coconut water products under the newly created Phenom brand name.

The products are expected to be available during the second quarter of 2011 at GNC locations nationwide and on gnc.com exclusively prior to a wider release in other leading retail outlets in the U.S. The Phenom joint venture follows the successful retail launch of PepsiCo’s Gatorade G Series Pro at GNC stores in May 2010.

The Phenom line will address the growing demands of health-conscious consumers for natural products that help them with their daily regimen. This brand further demonstrates PepsiCo’s commitment to innovation around the evolving needs of consumers—with a particular focus on health and wellness, the company said.

“Phenom is perfectly positioned at the intersection of health and wellness and natural hydration,” said Massimo D’Amore, CEO of PepsiCo Beverages Americas. “This is an exciting new phase of our relationship with GNC. As our partner, they are a strong brand and provide well recognized capabilities in the health and wellness space. Phenom will leverage these strengths in combination with PepsiCo’s scale and leading coconut water know-how. We see a bright future for the Phenom initiative, by meeting the growing needs of U.S. consumers with a great-tasting beverage.”

Coconut water is a natural electrolyte beverage. Formed naturally inside the shells of coconuts, it is also low in fat and calories and is a “good source” of vitamin C and heart healthy potassium.

PepsiCo has been expanding its presence in the health and wellness sector—most recently with the announcement of its Global Nutrition Group—and this joint venture with GNC marks another step in that direction.

“This is the first time GNC has joined forces with a leader in the food and beverage industry to introduce a new line of products, and we are delighted to have PepsiCo as our partner,” said Joe Fortunato, CEO of GNC. “Coconut water has been recognized as one of the fastest growing categories in the beverage industry, and we believe this joint venture represents an exciting opportunity to launch a fortified and differentiated line of coconut water products. We believe the combination of PepsiCo’s strong capabilities in the global consumer beverage market with GNC‘s vitamin and mineral capabilities will uniquely position the Phenom brand of coconut water in the health and wellness market.”