Pepsico to sell controlling stake in Naked juice brands

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Pepsico to sell controlling stake in Naked juice brands

File photo of Pepsico's Tropicana Juice is shown on display at a new Wal-Mart store in Chicago.

- The beverage giant will sell its controlling stake in the Tropicana, Naked and other juice brands to the private equity firm PAI Partners for $3.3 billion, the company said on Tuesday.

The sale will allow PepsiCo to concentrate on the growth of its portfolio of healthy snacks and zero-calorie beverages, Chief Executive Ramon Laguarta said.

The company will retain a 39% stake in the future joint venture and have exclusive U.S. distribution rights for the brands.

In 1998, PepsiCo bought Tropicana, one of the most advanced juice brands for roughly $3.3 billion and premium juice maker Naked Juice for $150 million nearly a decade later.

The juice businesses made $3 billion in net revenue in 2020 with operating margins below PepsiCo's overall operating margins, the company said.