Coca-Cola is in talks to acquire or buy a stake in flavored bottled water company Glacéau to expand its non-soda offerings.

A deal hasn't been reached yet, but the maker of Vitaminwater could be valued at more than $2 billion, since a 30% stake in Glacéau was sold for $677 million in August to Tata Group, an Indian conglomerate that owns Tetley tea. Glacéau's growth since then could push a purchase price even higher.

Coke, which sells Powerade sports drinks, and acquired energy drink company Fuze Beverage in February, has been working to develop new waters and teas internally, while ramping up its search for acquisitions. The company has also considered buying Arizona Beverage Co. teas.

While Glacéau could have a hefty price tag, Acquiring the company "would help fill a big gap" in Coke's North American business, says Bill Pecoriello, a Morgan Stanley analyst.

Coca-Cola Co. is in talks to acquire or buy a stake in Glacéau, a fast-growing maker of bottled water enhanced with flavorings, sweeteners, vitamins and minerals.

No deal has been reached between the Atlanta beverage maker and closely held Glacéau, of Whitestone, N.Y., and negotiations still could fall apart, according to a person familiar with the situation. The entire company could be valued at more than $2 billion, since a 30% stake in Glacéau was sold in August for $677 million to Tata Group, an Indian conglomerate that also owns Tetley tea. Since then, ...

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