FT News Briefing PepsiCo’s juicy private equity deal
Aug 4, 2021
Spain calls on the EU to tackle soaring electricity prices amid political unrest. Russian athletes, despite a ban, make waves at the Tokyo Olympics, raising questions about doping and international sports policies. PepsiCo makes headlines by selling Tropicana and Naked Juice to a private equity firm for $3.3 billion, reflecting changing consumer preferences. The conversation also dives into the strategies behind private equity's focus on revamping underperforming brands, highlighting corporate carve-outs as a pathway to profitability.
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Russia at the Olympics
- Russian athletes compete under the "Russian Olympic Committee" despite a doping ban.
- The ban prohibits national symbols but allows athletes to participate, seemingly undermining its effectiveness.
PepsiCo's Shift
- PepsiCo is selling Tropicana and Naked Juice to focus on healthier, calorie-free products.
- The juice brands, while containing vitamins, also have high sugar content, slowing their growth.
Health Paradox
- Consumers are shifting towards healthier options, but high sugar content in fruit juices poses a challenge.
- Despite pandemic-driven interest in vitamin C, juice brand growth has lagged behind low-calorie alternatives.