In Cash Grab, Tropicana Adding Water to Orange Juice
PepsiCo exec says many consumers prefer it that way
By Evann Gastaldo, Newser Staff
Posted Feb 15, 2012 10:28 AM CST
Cartons of Tropicana orange juice lie in a grocery store display December 1, 2004 in Niles, Illinois.   (Getty Images)

(Newser) – PepsiCo's plan to increase profit margins for its Tropicana orange juice is simple: Just add water. Apparently some consumers are already doing that on their own, in order to get a less-thick or lower-calorie beverage. "They themselves add water before drinking OJ," a PepsiCo exec tells Bloomberg. "So why not add the water ourselves and charge for it?" Tropicana lost market share to Coca-Cola Co.'s Minute Maid and Simply Orange brands after PepsiCo repackaged its juice three years ago.

Now, instead of continuing to compete in the 100% juice category, PepsiCo will focus on different products with higher profit margins. One such product—Trop50, which contains 42% orange juice and uses a low-calorie stevia-based sweetener—has already been successful. Says the exec, "We have lost perspective here on the primary reason we are in business, which is to make money." Consumers will always know what they're getting, thanks to strict FDA juice labeling guidelines.

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Showing 3 of 49 comments
Thagnut
Feb 16, 2012 10:45 AM CST
Oh no you din't !!! Get ready for her throng of dimwit warriors to defend every word out of her mouth - She lets her ID spout nonsense in a gorgious soliloquey of unprovable hooey. S he loves America - except most of the people in it. You class-warfarin' Saul-Alinsky-Lovin' Kenyan/Muslim/Librul! Why do you hate our freedom(tm)??
williambaranowski
Feb 16, 2012 3:08 AM CST
Maybe it's concentrated water.
bigcatguy
Feb 15, 2012 8:23 PM CST
Tropicana, I am so over you.