Could This Be The End Of Tropicana Orange Juice? The Florida-Based Company Is In A Squeeze

Tropicana is in a bit of a bind right now, if recent earnings numbers are any indication. CNN reports that the parent company, Tropicana Brands Group (which also owns brands like Izze, Kevita, Naked, and more), saw both an income drop of 10% and a revenue loss of 4% last quarter. Sales for the household brand have been rough for a host of complicated reasons.

There have been harvest problems thanks to climate-related issues in farm areas, added competition at the store, consumer price concerns, and changes in Americans' overall beverage consumption habits; all of which have proven to be an uphill battle for Tropicana. The price for a bottle of orange juice has almost doubled since 2020, which has kept most price-conscious shoppers away from the juice. In January of 2020 an average 12-ounce bottle cost $2.30, while in January of 2024, it went all the way up to $4.50. First eggs, now orange juice, apparently 2025 is becoming the year of "extremely expensive breakfast."

One eight-ounce glass of Tropicana no-pulp orange juice contains 110 calories along with 22 grams of sugar. With so many other low to zero calorie options on the market like enhanced water, people have been reaching for juice less often. Tropicana does sell a zero sugar product, but it hit the market in 2023, and apparently hasn't been enough to keep sales chugging on an upward trend. The brand also released a juice-based product line called Tropicana Refreshers, which feature no orange juice at all.

But the real red flags are written into the balance sheet. PepsiCo, who owns a minority stake in Tropicana, now considers its investment as worth $135 million less, and European private equity group PAI Partners, which owns a controlling stake in Tropicana, has given the brand an emergency loan of $30 million. I'm no business genius, but the term "emergency loan" doesn't sound like a good thing. Looks like Tropicana has a bunch of lemons on its hands; we'll see if the company can somehow turn them into financial lemonade before something worse happens.