Tropicana reportedly in the midst of a financial crisis: All you need to know

Tropicana is reportedly facing a big financial crisis with a major drop in income and revenue. The fruit-based beverage company was founded by Anthony T. Rossi in 1947 in Florida, US. It was a subsidiary of PepsiCo before its majority stocks were bought by PAI Partners in 2021 while PepsiCo retained a minority stake in the company.

The brand grew into one of the biggest names in the fruit juice industry across the globe, with its orange juice becoming a staple in many households over the years. However, it has been currently facing a major financial crisis, as per a report from CNN.

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Tropicana's dropping revenue

As per a report from Debtwire (via CNN), the Tropicana Brands Group saw a 4% decline in revenue and a 10% decline in income in the last quarter alone. The Head of credit research at Debtwire, Tim Hynes, said,

“Tropicana’s financial difficulties have raised concerns about how the company will manage its balance sheet. Tropicana faces an uphill battle.”

Moreover, PAI Partners recently issued an emergency $30 million loan to the company. PepsiCo also wrote down the value of its investment by $135 million in the last quarter.

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Why is Tropicana facing these challenges?

There are multiple factors leading to the recent drop in revenue for the company. These factors range from natural disasters to consumer behavior.

Hurricane Milton and citrus disease

Florida suffered the ravages of Hurricane Milton last year, which brought deadly tornadoes, rain, and winds, affecting the orange production in the state. Notably, Florida accounts for the majority of orange production in the United States. CEO of Florida Citrus Mutual, Matt Joyner, said last year:

“Milton came across the center of the state and really impacted probably 70% of the most productive citrus acreage in Florida."

Moreover, there has also been a rise in the citrus greening disease in the United States in recent years. This affects orange trees by cutting off essential nutrients, leading to the production of lower-quality oranges or even death of the trees.

In 2024, orange production was predicted to drop 33% in Florida due to Hurricane Milton and citrus greening disease.

Lack of supply leads to price hike

With the production of oranges getting affected, their price of the fruit has increased in recent years as well. As per the Bureau of Labor Statistics, the average price of a 12-ounce bottle of orange juice has gone up from $2.30 in January 2020 to $4.50 in January 2025.

Tropicana recently tried to handle this differently by reducing the size of its bottle rather than increasing the price. However, that move drew immense criticism from customers, with some even claiming that the company was trying to rip them off.

Changing consumer habits

Consumers are now moving away from regular orange juices as they look to inculcate healthier options in their diet. Consumers are showing preference towards fresh-pressed and sugar-free juices or even other protein-packed beverages.

Tropicana did introduce a sugar-free section in 2023 along with non-orange juices and sparkling drinks. However, these products have not been very successful.

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