Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education

Front Page



UK Politics







Talking Point
On Air
Low Graphics

Tuesday, July 21, 1998 Published at 06:14 GMT 07:14 UK

Business: The Company File

Fresh juice for Pepsi

Putting the squeeze on Coke

America's leading orange juice brand has been bought by Pepsi for $3.3bn.

Tropicana was put up for sale by its owners Seagram in order to raise money to purchase the record company Polygram.

It was originally planning a stock market offering for the company, but got a better deal by making a private sale.

The deal gives Pepsi the market leader in fresh, not from concentrate, orange juice, with a 70% share.

Tropicana's $2bn annual sales include products like Twisters and Dole juices. Rival Coca-Cola's Minute Maid division is the second largest orange juice company.

But Pepsi's combined sales of $12.5bn after the deal would still lag behind Coca-Cola's annual sales of $18.9bn.

Pepsi has been pursuing a broad-based strategy of building up a snacks and fast-food business to rival Coke.

The snack division, Frito-Lay, produces potato chips like Ruffles and Doritos.

It floated off its fast food division, which includes Kentucky Fried Chicken, Pizza Hut, and Taco Bell, into a separate company last year.

Move to music

Seagram, a privately-held Canadian company, has been moving from drinks to entertainment.

While the company still owns brands like Absolut Vodka and Chivas Regal whisky, its focus was changed by the purchase of Universal Studies for $5.7bn in 1995.

Last month's $10bn purchase of Polygram, the music division of Philips, will give Universal ownership of some of the biggest record labels in the world, like Motown, Island and Mercury.

Advanced options | Search tips

Back to top | BBC News Home | BBC Homepage | ©

The Company File Contents

Relevant Stories

21 May 98 | Business
The drinks are on PolyGram

20 May 98 | The Company File
Hero of British films faces a wedding and a funeral

Internet Links



The BBC is not responsible for the content of external internet sites.

In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles