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Founded in the US in 1947 and having revolutionized orange juice production, Tropicana has been facing major financial difficulties in recent years. Powerful hurricanes in Florida and diseases affecting citrus groves have severely disrupted the production of oranges, the brand's most essential raw material.
It was also noted that the brand, which has experienced a massive loss in production, is expected to hit its lowest level of orange production in the last 88 years.
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According to a report by CNN Business, Tropicana experienced a 4 percent revenue loss in the last quarter, while its net profit fell by 10 percent. PAI Partners, which holds a majority stake in the company, provided an emergency loan of 30 million dollars, while PepsiCo, which holds a minority stake, wrote down the value of its investment by 135 million dollars.
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COMPANY IMAGE UNDER PRESSURE
While climate change and fruit diseases have left the brand in a difficult position, internal changes are also considered to have strained the company's image.
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Consumers have turned toward healthier alternatives, avoiding the high sugar content of orange juice. The brand responded to this demand by launching new products in 2023, such as a zero-sugar orange juice line and carbonated drinks. However, it was noted that the brand's 80-year association with orange juice has made this transition difficult.
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PACKAGING CHANGED
The decision to shrink the bottle size after the company opted for a renewal in packaging design through a 'rebranding' effort years ago was also met with a negative reaction from consumers.
In order to avoid raising prices, Tropicana reduced the 52-ounce bottle to 46 ounces.
However, this was perceived as a "trick" by the brand's loyal customers.
Faced with all these challenges, Tropicana has been left grappling with a major crisis under the influence of climate change, diseases, high prices, and changing consumer preferences.
News Source : 12punto
