PepsiCo sells Tropicana and other juices for 3.3 billion

The company bought Tropica in 1998 for 3 billion

Leading beverage company to hold 39% non-controlling stake in new joint venture with private equity partners

New York: PepsiCo Tropicana and other juices have sold their business to private equity firms for 3.3 billion. The New York-based company will have a 39 per cent non-controlling stake in the joint venture formed with PAI Partners. The juice business has been in decline since the 2000s. As the popularity of the low-calorie diet grew, so did the juice business.

As the trend continued, people began to prefer drinking water to low-calorie drinks. Juice turnover in the U.S. peaked at 4.2 billion gallons in 2003, but fell to 3 billion gallons in 2017. Brian Sundo, managing partner of Beverage Marketing Corp., believes the group no longer sees the trend change.

Although the juice business generated આવક 3 billion in revenue from PepsiCo last year, its operating profit margins were lower than its gross profit margin. “This deal will help us focus on our current portfolio rather than offering a variety,” said PepsiCo Chairman and CEO Ramon Laguerta.

These include products like healthy snacks, zero calorie drinks, soda stream. PepsiCo bought Tropica in 1998 and the juice brand was part of Tuesday's sale.

The company bought SodaStream in 2018 for more than ત્રણ 3 billion. Sodastream is a carbonated drink machine company. New York-based PepsiCo has the option to sell some of its juice businesses in Europe. The deal is expected to be completed by the end of this year or early next year.