PepsiCo will sell Tropicana and other juice brands to a private equity firm in exchange for pre-tax proceeds of 3.3 billion dollars (£2.3 billion).
PepsiCo will have a 39% non-controlling stake in a newly formed joint venture with PAI Partners.
Juice sales began to decline significantly in the early 2000s when low-carb diets grew in popularity, and that trend has continued with more families choosing water or other no or low-calorie drinks.
Juice consumption in the US peaked in 2003 at 4.2 billion gallons, but by 2017, that had fallen to 3 billion, wrote Brian Sudano, the managing partner of Beverage Marketing.
The group does not see that trend changing.
The juice business delivered about 3 billion dollars in revenue for PepsiCo last year, but operating profit margins were below the company’s overall numbers, it said.
PepsiCo chairman and chief executive Ramon Laguarta said in a prepared statement that the deal “will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream”.
PepsiCo bought Tropicana in 1998 and the Naked juice brand, also part of the sale on Tuesday, about 10 years later.
It was heading in another direction by 2018 when it bought SodaStream, the carbonated drink machine company, for more than 3 billion dollars.
PepsCo, based in New York, has the option to sell certain juice businesses in Europe.
The deal is expected to close late this year or early next year.