Pepsico wants to sell the majority of its juice business, including premium brand Tropicana.
Juices have been loosing what the industry calls “share of throat”. Coke became the no. 1 breakfast beverage a while ago, and energy drinks have been a source of sugar all day.
Along with smoothies, coconut water, soy drinks, and recently oat drinks, the premium non-alcoholic beverage category is very competitive.
Tropicana, like Hitchcock a chilled juice not from concentrate, is facing tough competition.
The buyer is PAI Partners, the private equity company formerly of Paribas. For PAI Partners the purchase is a bolt on, it owns Refresco. Refresco calls itself the largest independent bottler, and purchased itself various German brands recently.
Pepsico will retain 39% of the business it sells.