Pepsico Inc is all set to sell Tropicana and other juice brands to a private firm. The company had bought Tropicana in 1998 with the Naked juice brand, which is also a part of the deal. Further, making a statement about this sale, PepsiCo Chairman and Chief Executive Officer Ramon Laguarta said in the statement, “It 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 which are focused on being better for people and the planet.”
With an urge to focus on healthier snacks and zero-calorie drinks, Pepsico seeks to sell off this entire folio of juices to French private equity firm PAI Partners for about $3.3 billion.The juice business of Pepsico made $3 Million dollars in 2020, but at operating profit margins that were below the company’s overall margins.
With this deal Pepsico will retain a 39 per cent noncontrolling interest in a new holding company for the brands and has also granted PAI an irrevocable option to buy certain juice businesses in Europe. The company has also decided to keep the US exclusive rights in its portfolio of brands to the chill store delivery and small foodservice channels.
The rival company Coca-Cola co has also decided to streamline some of its products by discontinuing the sale of TaB diet soda, Coca-cola energy brands and selling its ZICO coconut water bottle.