03.03.2025 08:30
The hurricane that swept through Florida and diseases affecting fruits have dealt a significant blow to the orange production of the famous juice brand Tropicana, which is also sold in Turkey. Misbranding and rising prices have left the company facing a major financial crisis.
The fruit juice brand preferred in breakfasts sold in Turkey is going through tough times. Founded in 1947 in the USA and revolutionizing orange juice production, Tropicana has faced significant financial difficulties in recent years. Strong hurricanes in Florida and diseases affecting wooded areas have severely disrupted the production of oranges, which is the brand's most essential raw material. It has also been noted that the brand, which has experienced a significant production loss, is expected to fall to its lowest level of orange production in the last 88 years.
NET PROFIT DECREASED BY 10%
According to a report in CNN Business, Tropicana experienced a 4% revenue loss in the last quarter, while its net profit decreased by 10%. PAI Partners, which holds the majority stake in the company, provided an emergency loan of $30 million, while PepsiCo, which holds a minority stake, reduced the value of its investment by $135 million.
While climate change and diseases in fruits put the brand in a difficult position, internal changes were also considered to challenge the company's image. Consumers have turned to healthier alternatives by avoiding the high sugar content of orange juice. The brand has responded to this demand by launching a zero-sugar orange juice series and new products like carbonated drinks in 2023. However, it has been noted that the brand's 80-year association with orange juice has made this transition difficult.
“CHEAT” REACTION FROM LOYAL CUSTOMERS
The decision to reduce the bottle size after the company's years-ago 'rebranding' and packaging design innovation was met negatively by consumers. Tropicana reduced the 52-ounce bottle to 46 ounces to avoid raising prices. However, this was perceived as a "cheat" by the brand's loyal customers. In the face of all these challenges, Tropicana is confronted with a major crisis due to the effects of climate change, diseases, high prices, and changing consumer preferences.