Looking to corner the market on America's breakfast beverage, Tropicana Products wants to reduce the competition to a pulp -- one juice glass at a time. A subsidiary of soda-and-snack behemoth PepsiCo, Tropicana, the best-selling orange juice in the US, makes orange juice at a facility in Bradenton, Florida, and sells it in the US and Canada through its PepsiCo Americas Beverages unit. Tropicana offers a variety of its flagship juices, including reduced-sugar, reduced-calorie, and calcium-fortified versions. Tropicana Pure, which is sold in a grocer's produce section, is the company's premium juice line. Tropicana also makes Pepsi's Naked Juice and juice for the Dole company under license.
The juice maker sources its oranges from Florida. It supplements this with imports from Brazil when Florida supplies are insufficient to meet its production needs. Tropicana products are available worldwide.
While PepsiCo doesn't break out Tropicana's sales -- instead including its results within its PepsiCo Americas Beverages segment -- Tropicana logged single-digit declines in volume sales in 2010, and in 2011 was outperformed by Gatorade sports drinks, which posted a double-digit increase in volume sales. Still, Tropicana is one of its parent company's megabrands (behind Pepsi-Cola, Lays, Mountain Dew, and Gatorade) with more than $5 billion in estimated worldwide retail sales in 2011. Tropicana, along with Gatorade and Quaker, is an important part of PepsiCo's fast-growing nutrition business.
Tropicana is trying to recover from a rebranding debacle that resulted in market share loss to archrival Coca-Cola-owned Minute Maid and other orange juice brands. Indeed, after its package redesign, sales of its Tropicana Pure Premium line plunged 20% between January 1 and February 22, 2009, costing the brand tens of millions of dollars in lost sales. To regain share and expand its customer base, Tropicana has concentrated on catering to the lucrative youth market as well as health-conscious shoppers. To this end, the company offers Twister, a chilled bottled juice with hip names such as Kiwi Strawberry Cyclone. In reaction to mounting consumer health and weight concerns, Tropicana makes a version of its juice called Trop50. The product is a vitamin C and E-enhanced drink sweetened with the Pure Via brand of stevia-based sweetener. It is also looking to Asia and the Middle East for growth. In China, Tropicana Pulp Sacs juice drinks, created to appeal to the flavor and texture preferences of Chinese consumers, delivered double-digit volume growth in 2011.
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