NEW DELHI: Snacks and beverage giant’s PepsiCo’s $3.3-billion sale of a controlling stake in its Tropicana and other juice businesses to French private equity firm PAI Partners will have no impact on the brand in India.
The New York-headquartered company on Tuesday announced the sale as it looks to focus on less sugary products, in sync with changing consumer preferences for healthier alternatives to fizzy and low-calorie drinks.
When contacted, a PepsiCo India spokesperson said, “The transaction announced today by PepsiCo applies to the company’s juice brands only in the US, Canada and Europe.”
The deal will see PepsiCo keep a 39% stake in the newly formed joint venture with PAI Partners. The company’s juice businesses delivered around $3 billion in net revenue in 2020 with operating profit margins that were below PepsiCo’s overall operating margin in 2020, it said in a statement.
“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,” said Ramon Laguarta, chairman and CEO at PepsiCo.
In the Rs 1,300-crore Indian packaged juice market, Tropicana competes with Dabur’s Real, ITC’s B-Natural and Hector Beverages’ Paper Boat among many other brands.
Similar to large global markets, Indian consumers, too, have been reaching out for healthy products. This has impacted the sales of sugary carbonated drinks and accelerated the uptake of alternatives such as value added dairy products (e.g. lassi), flavored water and coconut water. The juices and nectar segment witnessed a growth of 79.6% in the April-June quarter albeit over a low base in the same period last year due to Covid-19 lockdowns.
