PepsiCo to sell Tropicana, other juices, in $3.3B deal
Team Udayavani, Aug 3, 2021, 5:51 PM IST
New York: PepsiCo will sell Tropicana and other juices to a private equity firm in a USD 3.3 billion deal. The New York drink and snack company will keep a 39 per cent non-controlling stake in a newly formed joint venture in the deal with PAI Partners.
Juice sales began to decline significantly in the early 2000s when low-carb diets grew in popularity, and that trend has continued with more families choosing instead to buy waters or other no- or low-calorie drinks.
Juice consumption in the US peaked in 2003 at 4.2 billion gallons, but by 2017, that had fallen to 3 billion gallons, wrote Brian Sudano, the managing partner of Beverage Marketing Corp. The group does not see that trend changing.
The juice business delivered about USD 3 billion in revenue for PepsiCo last year, but at operating profit margins that were below the company”s overall margins, it says.
PepsiCo Chairman and CEO Ramon Laguarta said in a prepared statement Tuesday that the deal “will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream.”
PepsiCo bought Tropicana in 1998 and the Naked juice brand, also part of the sale Tuesday, about 10 years later. It was heading in another direction by 2018 when it bought SodaStream, the carbonated drink machine company, for more than USD 3 billion.
PepsiCo Inc., based in New York, has the option to sell certain juice businesses in Europe.
The deal is expected to close late this year or early next year.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Stock markets stage strong rebound after 4 days of slump, Sensex rallies 599 pts
PHF Leasing Limited raises $10 Mn through a mix of equity and debt
CCPA asks FSSAI to probe claim of Nestle adding sugar to baby products
Markets tank in early trade as Middle East tensions flare-up
Tesla shares tumble below $150 per share, giving up all gains made over the past year
MUST WATCH
Latest Additions
Injuries don’t define you: Mohammed Shami shares rehab update
Shivakumar desperately wants to become CM, says K’taka BJP chief Vijayendra
Scribe throws lapel microphone towards Sharad Pawar in Baramati; cops give clean chit
India delivers first batch of BrahMos missiles to Philippines
Air India cancels Dubai flights due to operational disruptions