PepsiCo is divesting its juice brand Tropicana alongside other select juice brands in the US and Europe, but in assuring that the India business will not be impacted by the company’s divestment plan.
This only applies to the company’s juice brands only in the US, Canada, and Europe. In India, Tropicana trails Dabur’s Real by a significant margin in terms of market share. The domestic packaged juice market is estimated at about Rs. 1,350 crores, led by Real and followed by Tropicana and ITC’s B Natural.
However, Tropicana juice and Quaker oats are core brands within PepsiCo India’s ‘healthiest-focused portfolio’ of products, which also makes Pepsi cola and Lay’s potato chips.
For the quarter ended June 2021, PepsiCo’s largest bottling partner Varun Beverages Ltd (VBL) said in an earnings statement that while carbonated soft drinks constituted 78% of overall sales volume in the quarter, juices accounted for 7% of the sales.
PepsiCo’s divestment will result in combined pre-tax cash proceeds of about $3.3 billion, while the company will retain a 39% non-controlling interest in a newly formed joint venture.