PepsiCo, Inc. on Tuesday announced that it has entered into an agreement with PAI Partners to sell Tropicana, Naked and other juice brands across North America.
Tropicana, one of the Bradenton area’s largest employers, was founded in 1947 by Anthony T. Rossi. He developed flash pasteurization and pioneered orange juice transport in 1970 via train from Florida to New York.
PepsiCo bought Tropicana from Seagram Co. Ltd in 1998 for $3.3 billion, initially keeping the company headquarters in Bradenton. In 2004, the company moved Tropicana’s executive offices to Chicago.
The move allows PepsiCo to focus on healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet.
The juice businesses delivered approximately $3 billion in net revenue in 2020 with operating profit margins that were below PepsiCo’s overall operating margin in 2020. PepsiCo expects to use the proceeds from the sale of these assets primarily to strengthen its balance sheet and to make organic investments in the business. The transaction is expected to close in late 2021 or early 2022, subject to customary conditions, including works council consultations and regulatory approvals.
PepsiCo products are sold in more than 200 countries and territories around the world. PepsiCo generated more than $70 billion in net revenue in 2020, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker, Tropicana and SodaStream.