PepsiCo has owned Tropicana since 1998 and Naked since 2007. The acquisition also includes other juice brands and is expected to close in late 2021 or early 2022. The sale comes at a time when consumers are buying more groceries, with juice sales experiencing a resurgence during the COVID-19 pandemic.
PepsiCo is offloading its juice brands in North America and an irrevocable option to sell certain juice businesses in Europe, according to CGT. Under terms of the $3.3 billion deal, PepsiCo will retain a 39% non-controlling interest in the deal as part of a newly formed joint venture. PAI will be the majority shareholder in the deal, though PepsiCo will keep exclusive U.S. distribution rights to the brands in its direct-store delivery for small-format and foodservice channels.
"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," said Ramon Laguarta, PepsiCo chairman and CEO. "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."
In 2020, PepsiCo’s juice brands reported roughly $3 billion in net revenue, with operating profit margins below PepsiCo's 2020 operating margin.
PAI Partners has also invested in Froneri, a global ice cream manufacturer, and Ecotone, a Netherlands-based sustainable food company.