Pepsi gets out of Orange Juice 😐

Pepsi gets out of Orange Juice 😐

What happened β€” Pepsi is offloading its juice business including Tropicana to private equity company PAI Partners, in a $3.5 billion deal β€” as the beverage brand prepares for the next lap of growth in the post-COVID world.

Why attac juice though β€” once a staple at the western family’s breakfast table, OJ is out of love with millennials and GenZ, who aren’t too excited about boomer traditions such as getting a tummy full of sugars to kick off the day.

As a result, OJ sales have flatlined or tanked, and brands across the board are aggressively exiting the business.

Making moves β€” meanwhile, Pepsi, just like Coke and other competition, will divert resources to functional drinks (health-focused or performance drinks). For example, Pepsi is looking to double down on Gatorade Zero, a zero sugar performance drink, that is increasingly seen moving from sports-locker rooms to office and home fridges.

Meanwhile, Coke had made similar adjustments to its own portfolio during the pandemic.

Big picture β€” giants like Pepsi and Coke manage to transcend decades primarily because they can keep innovating in these mundane ways, transforming into new avatars with ease. And loyal shareholders love it, ask uncle Warren!

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