Canada's most authoritative and exciting grocery b2b publication
Industry NewsPepsiCo exiting juice business

PepsiCo exiting juice business


PepsiCo is getting out of the juice business by selling its Tropicana and other juice brands in North America to French private equity firm PAI Partners in a U.S. $3.3 billion deal.

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

The juice businesses delivered approximately $3 billion in net revenue in 2020 with operating profit margins that were below PepsiCo’s overall operating margin in 2020. PepsiCo expects to use the proceeds from the sale of these assets primarily to strengthen its balance sheet and to make organic investments in the business. The transaction is expected to close in late 2021 or early 2022, subject to customary conditions, including works council consultations and regulatory approvals.

The sale will give PepsiCo the funds to develop and grow its portfolio of health-focused snacks and zero-calorie beverages, says chief executive officer Ramon Laguarta, as the company focuses on more profitable brands.

“This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands. In addition, 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.”


Follow us:

Recent Issues

Related Articles