PepsiCo to sell Tropicana, other juice brands for $3.3 billion

Tropicana, PepsiCo, North America

The juice businesses made about $3 billion in net revenue in 2020 for PepsiCo (REUTERS)

PepsiCo Inc unveiled a $3.3 billion sale of its Tropicana and other juice brands in North America to French private equity firm PAI Partners on Tuesday, as it looks to simplify its product range and move away from high-sugar drinks.

The company, which bought the orange juice maker in 1998 for roughly $3.3 billion and US-based Naked Juice nearly a decade later for $150 million, will keep a 39 percent stake in the new joint venture and have exclusive US distribution rights for the brands.

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

Rival Coca-Cola Co has also been streamlining its product range over the past year, discontinuing its TaB diet soda and Coca-Cola Energy brands in the United States and selling its ZICO coconut water brand.

“Companies are finding it difficult to provide effective marketing support behind an infinite number of brands that often compete for very similar occasions,” Rabobank Food and Beverage analyst Stephen Rannekleiv said in May.

He added that companies are looking to launch new products that have been developed in-house.

The juice businesses made about $3 billion in net revenue in 2020 for PepsiCo, with operating profit margins that were below the group’s.

The deal is one of the many food and beverage investments PAI has made over the last few years. In 2019, Nestle SA sold its U.S. ice cream business, including brands such as Häagen-Dazs, to a joint venture backed by PAI in deal valued at $4 billion.

Centerview Partners is the financial advisor to PepsiCo on the deal, while J.P. Morgan Securities LLC is advising PAI.

News Related

OTHER NEWS

Zee-Sony merger to have largest entertainment network in India

Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) announced that they had entered into an exclusive, non-binding Term Sheet to combine both companies’ linear networks, digital assets, ... Read more »

Here is why Paras Defence IPO subscribed over 16 times on the first day of bidding

Paras Defence and Space Technologies‘ initial public offering (IPO) has seen an overwhelming response from investors on the first day of bidding itself — on September 21. It was oversubscribed ... Read more »

These 8 fertilizer stocks doubled in a year, but saw up to 40% dip recently; worth a look?

Fertilizer stocks have been on a good run since the last 12 months. Many of the top stocks hit their 52-week high a couple of months back on expectations of ... Read more »

Moneycontrol PRO presents Quants League – Live Algorithmic Options Trading Virtual Conference

QUANTS LEAGUE is a biannual online conference that spans across 5 days inviting recognised and renowned speakers from across the globe sharing their wisdom and knowledge in building algorithm and ... Read more »

Gold Price Today: Yellow metal to remain range-bound ahead of Fed meet outcome

Gold was trading flat in the Indian market on September 22 amid rising uncertainties triggered by China Evergrande’s debt crisis and anticipation of policy cues from the US Federal Reserve ... Read more »

Will adding Indian debt securities to global bond indices reduce yields? Kotak MF's Lakshmi Iyer gives her take

If a country’s bonds are included in debt market indices run by global index makers, it acts as a guide for foreign investors to invest in Indian securities. Morgan Stanley ... Read more »

Flying cars in 2024? This tech CEO says it's commercially possible

Flying cars could be commercially available in 2024, but regulations for managing the new form of air traffic will be a concern, according to the chief executive officer of a ... Read more »

Australia's Zip enters Indian buy-now-pay-later space with ZestMoney deal

Founded by (L-R) Priya Sharma, Ashish Anantharaman and Lizzie Chapman in 2015, ZestMoney is a digital omnichannel BNPL player with a merchant network of 10,000 online and 75,000 physical stores. ... Read more »

Merger with ZEE in line with company's vision: Sony Pictures CEO tells employees

Sony Pictures CEO Tony Vinciquerra told employees that the merger with Zee Entertainment will be a huge opportunity for the company and will help lead consumer transition from traditional pay-TV ... Read more »

Zee Entertainment shares hit upper circuit on merger deal with Sony Pictures India

Zee Entertainment Enterprises (ZEE) shares were locked at 10 percent upper circuit in early trade on September 22 after the company signed a merger deal with Sony Pictures India. “The ... Read more »

Zee-Sony Pictures deal takes care of all stakeholders: Sources

The Zee Entertainment Enterprises (ZEE) stock is expected to continue to build on the gains clocked after the seemingly unexpected move to merge with Sony Pictures. What seems to the outside ... Read more »

The all new MFC platform: Will it be a one-stop portal for all mutual fund transactions?

Investing in a mutual fund (MF) is quite simple these days, more so if you are tech savvy. But it is not that easy to register your complaints and get ... Read more »

5 steps for a smooth cashless health insurance claim experience

Most health insurance companies offer cashless claim settlement of hospitalization bills. Though not complicated, it important to follow a set of steps and processes for you to make the claim ... Read more »

Our youth flock to Lisbon: beautiful life or starvation wages?

Premium The best of De Telegraaf ‘After a broken arm, resignation letter on the mat’ LISBON – In cozy bars such as the Ache Cohiba and Cargo 111 in the ... Read more »

US to probe Zoom's USD14.7 billion Five9 deal for national security risks

A US government committee that reviews foreign investment in telecom is probing videoconferencing company Zoom‘s $14.7 billion deal for cloud call centre company Five9. In an August filing with the ... Read more »

Evergrande signs deal to avoid default on key bond

Chinese property developer Evergrande has admitted facing ‘tremendous pressure’ as it tackles a debt pile of more than $300 billion. BEIJING: Embattled Chinese housing giant Evergrande said on Wednesday it ... Read more »

Buy USDINR; target of: : 74.0 : ICICI Direct

ICICI Direct’s currency report on USDINR US dollar decline by 0.04% yesterday as US stocks ended mixed. Further, market participants awaited outcome of Fed monetary policy meeting. However, sharp fall ... Read more »

More than £1bn in state pensions underpaid due to 'repeated human errors'

Most of those affected are likely to be women and the true value of the underpayments will only become clear once the DWP has completed its review of all cases. Read more »

August exports up, says minister

Exports increased in August but at a slower pace than in July as coronavirus restrictions hit manufacturing and logistics, the commerce minister said on Wednesday. Exports should remain positive for ... Read more »

StarHub to buy majority stake in MyRepublic's Singapore broadband business

SINGAPORE – Local telco StarHub will be buying a majority 50.1 per cent stake in rival Internet service provider MyRepublic’s broadband business for residential and enterprise customers in Singapore, which ... Read more »

ZestMoney raises $50 million in Series C funding

Founded by (L-R) Priya Sharma, Ashish Anantharaman and Lizzie Chapman in 2015, ZestMoney is a digital omnichannel BNPL player with a merchant network of 10,000 online and 75,000 physical stores. ... Read more »

China stocks retreat as Evergrande seeks to delay debt repayment while Hong Kong market pauses for holiday

Stocks in mainland China dropped as trading resumed after a two-day holiday as China Evergrande Group’s debt crisis stoked concerns about contagion risks in a slowing economy. The Shanghai Composite ... Read more »

DAILY VOICE | Nimish Shah of Waterfield Advisors suggests creating core portfolio of good quality auto ancillary stocks post PLI scheme

Nimish Shah, Chief Investment Officer – Listed Investments at Waterfield Advisors advised caution for investing fresh money into metal stocks, especially after stellar run in the sector. “At these valuations, ... Read more »

Wall Street ends near flat on cautious note ahead of Fed meeting

Investors are waiting for the end of this week’s Fed meeting that may shed light on when its massive purchase of government debt will begin to ease. (Representative image) US ... Read more »

Cryptocurrency Prices Today on September 22: Ethereum falls more than 5%

Bitcoin | Image: Shutterstock Cryptocurrency prices continue to be in the red on September 22. The global cryptocurrency market cap is Rs 136.32 lakh crores, a 2.42 percent decrease over ... Read more »

Zee Entertainment signs merger deal with Sony Pictures India

Zee Entertainment. Zee Entertainment has signed a merger deal with Sony Pictures Networks India Private Limited, the company said in an exchange filing. According to the deal, Sony Pictures Entertainment ... Read more »

Oil rises on big decline in US crude stocks

Brent crude futures climbed 68 cents, or 0.9 percent, to $75.04 a barrel, after gaining 44 cents on September 21. (Representative image) Oil prices rose around 1 percent on September ... Read more »

Lottery Sambad Result September 15: 'Dear Bangalakshmi Raidak' lottery winners to be announced at 4 pm

Results of the West Bengal State Lottery Sambad ‘Dear Bangalakshmi Raidak’ are announced every Wednesday at 4 pm. (Representative image) Lottery Sambad Result: The West Bengal State Lottery Department will announce the results ... Read more »

Asian trade tense in the shadow of Evergrande and the Fed

S&P 500 futures fell 0.4 percent in early Asia trade and the offshore yuan was under pressure near a one-month low at 6.4850 per dollar. (Representative image) Asian stock markets ... Read more »

PM refuses to budge on benefit cuts despite taxpayers footing bill to support US-owned CO2 producer

In a deal brokered by Business Secretary Kwasi Kwarteng, the UK Government will provide "limited financial support" towards CF Fertilisers' running costs. Read more »

Trade Spotlight: What should investors do with Godrej Properties, ONGC and PVR?

After a day of steep fall, the market recovered smartly, with the BSE Sensex climbing more than 500 points to reclaim the 59,000-mark on September 21. The recovery in most ... Read more »

Dollar near one-month high as Evergrande risks, Fed loom

Investors also look to how mainland Chinese markets will react when they will reopen on September 22 after a four-day weekend. (Representative image) The dollar held below a near one-month ... Read more »

Hong Kong, US hedge funds root for Luckin Coffee to overcome accounting scandal with debt restructuring pact

Not many would have given Luckin Coffee a chance to survive its accounting fraud. Yet, since falling into provisional liquidation in July 2020, the firm has opened more stores, is ... Read more »

Petrol, diesel prices on September 22: Check rates in your city

Chennai also retailed a litre of petrol at the same price – Rs 98.96. (Representative image) The petrol and diesel prices remained unchanged for the 17th day in a row on ... Read more »

Caste bias lawsuit | Cisco files opening brief to compel arbitration in US Appeal Court

Cisco (Image: Reuters) US tech major Cisco filed opening brief in the US Appeal Court to compel arbitration with John Doe, a Dalit employee who had filed caste-bias lawsuit against ... Read more »

China Evergrande unit says to make onshore bond interest payment on Sept 23

Evergrande has over $300 billion in liabilities. SHANGHAI (REUTERS) – China Evergrande Group’s main unit Hengda Real Estate Group said on Wednesday that it would make a bond interest payment ... Read more »

The importance of customer metrics in revenue growth

We all talk about measuring customer satisfaction and comparing it with any indices in the industry. “Is the amount spent on customer satisfaction and loyalty measurement programmes really worth it,” ... Read more »

Lululemon survey finds vast majority of Asian workers want to ditch suits for T-shirts, shorts and yoga pants

More than four in five consumers across Asia-Pacific hope T-shirts, shorts and yoga and jogging pants are here to stay in offices, as companies adopt hybrid or flexible work arrangements, ... Read more »

How this organisation creates a culture shift to build a future-ready team

Income employees at a company-wide innovation showcase exploring different Insurtech applications, including AI for health underwriting. PHOTO (TAKEN BEFORE COVID-19): NTUC INCOME Navigating culture change in the workplace is a ... Read more »

Calls for industry review over concerns musicians get 'meagre returns' from streaming system

According to the Broken Record campaign, under the current system artists receive around 16% of the total income from streams, while record companies receive around 41% and streaming services around 29%. Read more »