The firm praised Laguarta’s “willingness and ability to aggressively reshape the PepsiCo portfolio to drive incremental growth and profit.”

Guggenheim analyst Laurent Grandet wrote in a note on Tuesday that the move is “smart and bold” because Tropicana and Naked are “dilutive to both the top and bottom lines” of Pepsi. When more people started eating breakfast on the go, juice got left behind. Plus, regular juice was long marketed as a breakfast drink. Today, fresh-pressed green juices, water and other low-calorie beverages have inherited that health halo. Traditional fruit juice, once thought of as healthy, has been recast as a source of empty calories and sugar. Some consumers have turned against regular fruit juices. Sales of orange juice have been been declining steadily over the past decade, despite a slight increase in sales last year because of the pandemic. PepsiCo’s juice business has been a drag on its bottom line. (PEP)Co CEO Ramon Laguarta said in the press release that the sale 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.”įunds from the sale will be used to its strengthen the company’s balance sheet and is expected to close later this year or early 2022 depending on regulatory approvals.

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