The renowned Argentine juice brand Tropicana, founded in 1947, is on the brink of bankruptcy due to a severe economic crisis. This critical situation has led the company to struggle to stay afloat amidst various adverse factors.
Tropicana, once a direct competitor of Cepita in the Argentine market, is facing difficulties amid a significant decrease in orange production, according to the U.S. Department of Agriculture. This fact has severely impacted the company, whose main raw material is the orange.
The brand, which has suffered a 4% drop in its revenues in the last quarter and a 10% decrease in its profits, has been affected by various factors. On one hand, the state of Florida, where much of the citrus used by Tropicana is grown, has been battered by hurricanes in recent years, impacting orange production.
In 2024, Hurricane Milton considerably damaged around 70% of the state's citrus area, directly affecting the company’s supply chain. Acquired by Pepsico in 1998, Tropicana is now part of Tropicana Brands Group, which owns other well-known brands like Naked and KeVita.
In addition, other factors such as a shift in consumer habits, with customers preferring drinks with less sugar, have affected the demand for orange juice. Moreover, an insect plague has caused the rotting of oranges on the trees, generating greater complications for the brand's production.
