New Tool: ProSource
Checkout our packaging and processing solutions finder, ProSource.

PepsiCo Selling Juice Brands for More Than $3 Billion

The transaction will allow the company to concentrate on growing its current portfolio of diverse offerings, such as healthier snacks, zero-calorie beverages, and products like SodaStream.

Pepsi Co Logo

PepsiCo has entered into an agreement with PAI Partners (PAI) to sell Tropicana, Naked, and other select juice brands across North America, and an irrevocable option to sell certain juice businesses in Europe, which will result in combined pre-tax cash proceeds of approximately $3.3 billion, while retaining a 39% non-controlling interest in a newly formed joint venture. PAI, a leading private equity firm with strong experience in the food and beverage space, will be the majority shareholder of the transferred business, with PepsiCo retaining exclusive U.S. distribution rights to the portfolio of brands in its best-in-class, chilled Direct Store Delivery for small-format and foodservice channels.

The transaction is expected to close late this year or early in 2022, subject to customary conditions, including works council consultations and regulatory approvals. Pepsi says it will use the proceeds from the sale to strengthen its balance sheet and invest back into its business.


Read article   PepsiCo Releases 2020 Sustainability Report


“This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands,” says PepsiCo Chairman and CEO Ramon Laguarta. “In addition, it 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.”

“We are delighted to bring these storied beverage brands into the PAI portfolio through another partnership with a leading global food and beverage company. We believe there is great growth potential to be realized through investments in product innovation, expansion into adjacent categories, and enhanced scale in branded juice drinks and other chilled categories,” adds Frédéric Stévenin, a managing partner at PAI. “We are also thrilled that PepsiCo will remain involved as our partner in the joint venture as we execute our plans to drive the future success of these brands.”


Discover Our Content Hub
Access Packaging World's free educational content library!
Read More
Discover Our Content Hub
How Can You Honor a Leader?
Induction into the Packaging & Processing Hall of Fame is the highest honor in our industry. Submit your leader to be considered for the Class of 2024 now through June 10th. New members will be inducted at PACK EXPO International in Chicago
Read More
How Can You Honor a Leader?