AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
.png)
Summary
- PepsiCo had bought Tropicana for roughly US$3.3 billion in 1998. It also had acquired Naked Juice for US$150 million about a decade ago.
- The company plans to use the funds to build a health-focused portfolio of snacks and beverages.
- PepsiCo’s close rival Coca-Cola Co (NYSE:KO) also streamlines its product range to include more health-focused products.
PepsiCo Inc (NASDAQ:PEP) on Tuesday announced plans to sell its juice brands like Tropicana to the French company PAI Partners for US$3.3 billion. The move is part of its plan to shift from high-sugar drinks to health-focused snacks and beverages.
The company had bought Tropicana for around US$3.3 billion in 1998. It also had acquired Naked Juice for US$150 million about a decade ago. However, PepsiCo will hold a 39% stake in Naked Juice and distribution rights for the other brands in the US market.
The company will utilize the funds to build a portfolio of health-focused food like snacks and zero-calorie beverages, Reuters quoted CEO Ramon Laguarta as saying.
The New York-headquartered company is expected to focus more on profitable brands.
PepsiCo’s close rival Coca-Cola Co (NYSE:KO) also streamlines its product range to include more health-focused products. It has already discontinued TaB diet soda and some energy brands in the US and introduced the ZICO coconut water brand.
Also Read: P&G FY’21 result beats estimate; Colgate-Palmolive narrows outlook
Source: Pixabay
Also Read: Trending restaurant stocks: McDonald’s (MCD), Starbucks (SBUX)
In Q1 of 2021, the snacks and beverage maker had posted a 6.8% net revenue growth YoY to US$14.82 billion. In the year-ago quarter, it was US$13.88 billion.
Its organic revenue jumped 2.4% YoY during the period.
Some of its brands include Tropicana, Aquafina, Gatorade, 7 Up, and Doritos.
It generated US$5.07 billion in revenue from the North American beverages segment in the quarter, up from US$4.84 billion.
Its GAAP EPS rose by 29% to US$1.24 against 96 cents in the corresponding period of 2020.
PepsiCo’s net income increased from US$1.34 billion to US$1.71 billion in the first quarter.
The PepsiCo (NASDAQ:PEP) stock was priced at US$156.775, up 0.29% from the previous close at 10:05 am ET on Tuesday.
Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
