A generational change in morning beverage preferences is a fact not lost on PepsiCo, with product launches like Kickstart in 2013 and, most recently, Mountain Dew Rise in 2021 – both energy drinks targeting the morning occasion. The multi-serve carton or jug of orange juice no longer occupies a regular place on the morning breakfast table, while various formats of coffee (hot, cold or pod-based), flavoured water, tea and even energy drinks have gained share as a morning beverage alternative. This is part of a long-term, perhaps generational shift in how individuals and families consume fruit juice as part of their routine. Per capita consumption of 100% juice and nectars in the US fell by 36% over 2006-2020. North American families don’t consume fruit juice in the same way they used to The sale of PepsiCo’s juice business reflects several short-term and longer-term challenges for the company and the wider fruit juice category in the region. Nestlé Waters also sold its North American regional packaged water and water delivery businesses to private equity in March 2021.īut an established household brand leaving the portfolio of the “big two” soft drinks companies is an uncommon event. High-profile casualties of Coca-Cola’s global SKU rationalisation programme in 2020 included Odwalla juice, Zico coconut water, stevia-sweetened Coca-Cola Life, Tab diet cola and – most recently – the short-lived Coca-Cola Energy launch in the US. The sale of Tropicana is perhaps the most high-profile change in a busy year of discontinuation and divestment among the biggest soft drink producers in North America.

According to Euromonitor International’s Soft Drinks system, Tropicana was the second largest brand in global juice in 2020 in terms of volume, after Minute Maid (Coca-Cola Co), and the largest brand in global 100% juice due primarily to leadership in North America (particularly in the orange juice category).

On 3 August, PepsiCo announced the sale of its Tropicana and Naked fruit juice businesses to the French private equity firm PAI Partners, while retaining a non-controlling stake in a new joint venture for the brands. Howard Telford – Head of Soft Drinks Research What Does PepsiCo’s Sale of Tropicana Mean for the Future of the Juice Category in North America?

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