PepsiCo says it will distribute Starbucks Ethos water

PepsiCo has agreed to distribute Starbucks Ethos bottled spring water as the companies seek to expand their existing joint venture for Frappuccino and DoubleShot coffee drinks.

Pepsi will package and distribute Ethos water to more than 100,000 stores in the U.S. and Canada under the new agreement, PepsiCo said today in a joint statement with Seattle-based Starbucks. Previously, Ethos water was sold at 5,000 Starbucks stores and some small retailers. Financial terms were not disclosed.

The world's largest coffee-shop chain has pledged at least $10 million over the next five years for non-profit organizations that promote safe drinking water around the world. It donates 5 cents for each bottle of Ethos water sold. The beverage costs about $2 per bottle.

Ethos was founded in 2002 by Peter Thum and Jonathan Greenblatt and acquired by Starbucks in April 2005.

Starbucks and Pepsi formed the North American Coffee Partnership in 1994. They jointly make and distribute Frappuccino, DoubleShot espresso and Starbucks Iced Coffee.

Starbucks shares rose 53 cents to close at $36.24 today.