PepsiCo planning to add water to its Tropicana brand orange juice products in attempt to increase its profit margins, company official says
February 15, 2012
– PepsiCo is planning to add water to its Tropicana brand orange juice products in an attempt to increase its profit margins, Bloomberg reported Feb. 15.
PepsiCo Global Beverages Chief Massimo D’Amore said many consumers add water themselves to orange juice before drinking it. Thus, he said, it makes sense for the company to add the water and charge for it.
Although the best-selling orange juice in the U.S., Tropicana lost market share last year to Coca-Cola’s Minute Maid and Simply Orange brands. To combat this, D’Amore is focusing on products with less juice and more innovation, which he believes will lead to higher profit margins.
The primary source of this article is Bloomberg, New York, New York, on Feb. 15, 2012.