Recently, it has been reported that Pepsi-Cola will sell its own juice brand. In the eyes of melon-eating people, it seems that they do not understand why Pepsi would sell its own juice brand? You must know that these juice brands have achieved more than 3 billion US dollars in revenue for PepsiCo in 2020, but are they still unable to operate with such high revenue? In fact, PepsiCo sold its juice brands in order to achieve win-win cooperation with French private equity investment companies.

1. What will PepsiCo get in exchange for selling its juice brands?

PepsiCo packaged and sold its Fruita, Naked and other North American juice brands to PAI Partners, a French private equity investment company. PepsiCo's choice to sell the juice brand can be exchanged for a net asset income of US$3.3 billion, a 39% stake in the French private equity investment company's newly established joint venture, and the exclusive distribution rights of the sold juice brand in the United States. In other words, Best Company acquired 39% of another company's shares by selling the juice brand, and it also has the exclusive distribution rights of the juice brand in the United States. This transaction is not a loss at all.

2. Win-win cooperation

For French private equity investment company PAI, market cooperation can bring them significant early value, because Pai is originally a company specializing in food and beverages. They are private equity companies that have invested in various fields. They have rich investment experience, so they are very happy to join PepsiCo’s juice brands. PepsiCo’s various juice brands will help them explore a diversified product portfolio, including zero-calorie juices. A series of studies on beverages and healthy snacks. The person in charge of the pharmaceutical company said that he was very happy to cooperate with PepsiCo.

3. Another benefit of selling juice brands for PepsiCo

For PepsiCo, selling juice brands, in addition to obtaining a large amount of funds and cooperation shares in new companies, PepsiCo can also conduct internal product optimization and company structure optimization by selling juice brands. If you don’t know, although everyone knows that Pepsi has Coke, are you familiar with Pepsi’s other juice brands? Not familiar. Therefore, it is also a good thing to leave the management of other brands to more professional companies.