Pepsi sells Tropicana and other juices to double down on "functionality" in its portfolio

Hold the pulp... Tropicana, America's top refrigerated OJ brand, was founded in 1947 by an Italian immigrant who arrived in the US with $25. In 1998, Pepsi bought it for $3.3B. Now, Pepsi is selling Tropicana, Naked, and other juice brands in North America for... $3.3B.

• Sour on sugar: Pepsi said the deal will allow it to focus on its growing portfolio of healthier snacks and zero-calorie bevs. Like: Bubly sparkling water and Gatorade Zero.
• Functional-first: As consumer preferences shift, Pepsi has been investing in "functional beverages" — drinks that provide more than just sugar, enhanced by a healthy(ish) touch.

Add the B vitamins... As sugar loses steam, bev giants are replacing sodas and juices with vitamin-packed energy drinks and enhanced waters with a "purpose." The global market for functional bevs is expected to hit $130.5B this year, up 8% from last year. These premium drinks also command higher prices than your average can of carbonated syrup.

• Relax: Last year, Pepsi intro’d Driftwell — water enhanced with magnesium and L-theanine for relaxation (ASMR in a can).
• Energize: Pepsi also bought Rockstar Energy for $4B, and launched new versions featuring Hemp and B Vitamins.
• Cleanse: In January, Pepsi partnered with Beyond Meat for plant-based snacks and drinks. It's also tried to "health-ify" its own brands with Lay's baked chips, Quaker breakfast bars, and Sabra hummus cups.