PepsiCo is promoting Tropicana as prospects proceed to ditch juice

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In the deal announced Tuesday, PepsiCo’s juice businesses in North America will be sold for roughly $3.3 billion to PAI Partners, with PepsiCo retaining a 39% stake in the newly formed business. The deal also includes the option for PepsiCo to eventually sell its European juice businesses at a later date.

PepsiCo is selling Tropicana.
PepsiCo (PEP) CEO Ramon Laguarta said in the press release that the sale 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.”

Funds from the sale will be used to its strengthen the company’s balance sheet and is expected to close later this year or early 2022 depending on regulatory approvals.

PepsiCo’s juice business has been a drag on its bottom line. Sales of orange juice have been been declining steadily over the past decade, despite a slight increase in sales last year because of the…

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