PepsiCo is selling (part of) its juice branch: the soft drink producer is transferring Tropicana, Naked and other juice brands to a new joint venture with French investment group PAI Partners.
For people and the planet?
PepsiCo wants to focus on healthier products, which is why the American food giant is now divesting its fruit juice division. 61 % of the new joint venture will be in the hands of the French investors, 39 % will remain in the hands of PepsiCo. The deal will earn PepsiCo 3.3 billion dollars (2.8 billion euros).
Fruit juice brand Tropicana will come (partly) into French hands, together with American sister brands such as Naked. PepsiCo will keep the gazpacho products of Alvalle and the fruit juices of Looza, however. According to CEO Ramon Laguaerta, PepsiCo wants to focus on its current range of brands and accelerate the growth of its portfolio of healthy snacks, low-calorie drinks and "products like SodaStream", because these are better for people and planet, Belgian newspaper De Tijd quotes the American company.
Away from chilled
The fact that PepsiCo can now completely withdraw from the more complex chilled segment undoubtedly plays a role as well. In 2020, fresh fruit juices accounted for a turnover of 3 billion dollars, but profitability was lagging behind. Chilled fresh drinks require different - and more expensive - logistics than the group's other products. The turnover growth has also been falling in recent years, as consumers no longer necessarily regard sugary drinks as healthy.
PAI Partners, on the other hand, does see a future in the segment. During the pandemic, demand soared again, and the investment group wants to bring Tropicana to other channels, such as smaller retail formulas and the out-of-home segment. Since the end of last year, PAI has also been a majority shareholder in the fresh market chain Grand Frais, for example.