PepsiCo will sell Tropicana and other juice brands to a private equity firm in exchange for pre-tax proceeds of $3.3 billion (€2.7 billion).
PepsiCo will have a 39 per cent non-controlling stake in a newly formed joint venture with PAI Partners.
Juice sales began to decline significantly in the early 2000s when low-carb diets grew in popularity, and that trend has continued with more families choosing water or other no or low-calorie drinks.
Juice consumption in the US peaked in 2003 at 4.2 billion gallons, but by 2017, that had fallen to 3 billion, wrote Brian Sudano, the managing partner of Beverage Marketing.
The group does not see that trend changing.
PepsiCo chairman and chief executive Ramon Laguarta said in a prepared statement that the deal “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”.
PepsCo, based in New York, has the option to sell certain juice businesses in Europe.
The deal is expected to close late this year or early next year.
