PepsiCo to sell Tropicana, other juice brands for US$3.3b

[NEW YORK] PepsiCo will sell its controlling stake in Tropicana, Naked and other juice brands in North America to private equity firm PAI Partners for US$3.3 billion, the beverage giant said on Tuesday.

The sale will allow PepsiCo to concentrate on growing its portfolio of health-focused snacks and zero-calorie beverages, chief executive officer Ramon Laguarta said.

The company will retain a 39 per cent stake in the new joint venture and have exclusive US distribution rights for the brands.

PepsiCo bought Tropicana, one of the world's most recognised juice brands in 1998 for roughly US$3.3 billion and premium juice maker Naked Juice nearly a decade later for US$150 million.

The juice businesses made about US$3 billion in net revenue in 2020 with operating profit margins that were below PepsiCo's overall operating margins, the company said.

REUTERS