The favorite orange juice maker in America is in major financial problems – struck by a triple Whammy of problems.
Hurricanes that destroy fruit trees, insects that destroy orange bushes and consumers who cut on sugar have all hit tropicana.
Tropicana, best known for its beloved orange juice, has fought against the falling sale and shrinking profits in recent years and the price of oranges has been shot up.
The company, which also owns naked smoothies and kevita -sappen, saw its income fall by 10 percent and its turnover last quarter by four percent.
Despite the turnover of Tropicana that has been falling lately, it is still the largest cooled sapmerk in the US, with about a third of the market share – just for simple.
Tropicana's financial misery were exposed when it was recently forced to take a lifeline of $ 30 million from private equity company PAI Partners.
Pai took a controlling interest in Tropicana, founded in 1947 by a Sicilian immigrant, four years ago from Pepsico.
Recent events, however, show that they are a lender of the latest resort 'and' not trusting that there will be no value of their initial investment ', Tim Hynes, the head of the credit investigation at Debtwire, told CNN.
Tropicana, best known for its beloved orange juice, has fought at a falling sale and profit
Pepsico still has an interest in the company, but has written its value last quarter by a stunning $ 135 million last quarter.
“The financial problems of Tropicana have expressed their concern about how the company will manage its balance,” said Hynes.
“Tropicana is confronted with a tough fight.”
The problems of Tropicana are exacerbated by raised hurricanes in Florida and droughts in Brazil where much of its fruit is grown.
This year's global orange production is expected to be the lowest in 88 years, according to the Ministry of Agriculture.
Furthermore, a disease has supported insects that recently destroyed huge parts of orange bushes that the company deliver.
The decrease in the offer has sent the costs of increasing orange apple products. The average price for a 12-esse bottle of orange juice was $ 4.50 in January, almost doubled since 2020.
High prices have postponed inflation-required customers, with only 19 percent of American consumers think that Orange SAP is a good value, according to a recent Mintel survey.
The production of orange juice in Florida has been hit by hurricanes and diseases
This year's worldwide orange production is expected to be the lowest in 88 years
Tropicana recently also reduced the size of its orange juice bottles from 52 ounces to 46 grams instead of further increasing prices.
The move, however, has failed if customers accused the brand of secret shrinkflation.
Changing diets have also hit Tropicana if consumers try to reduce sugar.
Americans now change orange juice for tea, sparkling water or other drinks that claim to offer healthier alternatives.
Tropicana is confronted with pressure from the bottom of the market by the cheaper minusmaid brand from Coca-Cola.
At the same time, rival brand is simply pressing on the more Premium end.
