Pepsico smashes earnings expectations with salty snack surge
CFO and vice chairman Hugh Johnston details why business is booming
Pepsi is selling Tropicana, Naked and other North American juice brands to private equity while still keeping its foot in " its best-in-class" brands.
The deal, with PAI Partners, will net $3.3 billion while Pepsi retains a 39% noncontrolling interest in a newly formed joint venture.
The deal clears the way for the beverage giant to focus on healthier food and drinks.
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"In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet," PepsiCo Chairman and CEO Ramon Laguarta said in a statement.
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In the past several years, Pepsi has seen customers gravitate to healthier options a move Pepsi CFO and vice chairman Hugh Johnston explained in an interview with FOX Business earlier this year.
"If you look at our beverage business overall a lot of the growth is coming from low to no sugar products. Bubly is essentially a product that we created with terrific flavors, sparkling water and really I think cute and effective marketing which appeals to a broad base of consumers. That business has kind of gone from nothing to a multi $100 million business and Gatorade Zero has exploded on us" he said.
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