PepsiCo in Cork not impacted by sale

PepsiCo's decision to sell some of its brands is not expected to impact their Cork plants. REUTERS/Mario Anzuoni

The decision by PepsiCo to sell its Tropicana, Naked, and other juice brands to a French private equity firm will not impact the company's significant operations in Cork.

It was announced last week that the food and beverage giant was selling the brands to PAI Partners for €2.8bn as it seeks to bolster its balance sheet and focus on healthier snacks and zero-calorie drinks.

PepsiCo will retain a 39% non-controlling interest in a new holding company for the brands and has also granted PAI an irrevocable option to buy certain juice businesses in Europe, according to a statement.

PepsiCo has operated in Ireland for almost 40 years with three significant facilities in Cork located in Carrigaline and Little Island employing almost 1,000 people. It is understood the deal with PAI will not impact operations in Ireland as there are no juice production facilities here with brands like Tropicana and Naked being imported into the country.

PepsiCo’s operations in Cork are headquarters for global concentrate operations servicing customers in more than 125 countries. It is also home to the research and development campus in the areas of measurement science, beverages, packaging, and dairy.

Announcing the deal last week, PepsiCo chairman and chief executive Ramon Laguarta said it will free them to concentrate on their current portfolio of diverse offerings, including growing its portfolio of healthier snacks and zero-calorie beverages.

The PepsiCo juice businesses delivered about $3bn in net revenue in 2020.

Chief financial officer Hugh Johnston said the juice category has had challenges in recent years and the company was prioritising its efforts.