US drinks giant Coca-Cola is in talks regarding a possible buy-out of bottled water firm Highland Spring.

Coca-Cola already owns Malvern Water and has been trying to diversify away from its fizzy drinks brands amid increasing international trends towards healthier lifestyles.

A takeover of the UK's second biggest water brand, behind Danone, which produces Volvic and Evian, would give Coca-Cola a powerful position in the UK water market.

Under the current trend, people are expected to drink more bottled water than Coke by the end of the decade.