Pepsi’s New Strategy To Make Money, Add Water To Orange Juice Products

PepsiCo changed the packaging of its Tropicana orange juice product three years ago and ever since the company has given up market share to the likes of Minute Maid ans Simply Orange, now in an attempt to earn back some of the company’s losses PepsiCo will add water to orange juice products.

A PepsiCo executive speaking about the habits of orange juice buyers tells Bloomberg:

They themselves add water before drinking OJ. So why not add the water ourselves and charge for it?”

The idea is that consumers want a less pulpy or less thick orange juice product which Pepsi can provide through various alterations to its original Tropicana product.

PepsiCo has already seen much success in its Trop50 product which contains just 42% orange juice while implementing a low-calorie stevia-based sweetener.

Flaunting the company’s attempt to cut down on the actual orange juice they offer in their orange juice products the executive continues:

“We have lost perspective here on the primary reason we are in business, which is to make money.”

Thankfully strict FDA labeling practices ensure that buyers will always know what they are getting and for its part PepsiCo has been good in delivering that labeling, for example Trop50 clearly states the type of product that is being offered.

With vitamin water, water and dozens of other drink products available for consumption it will be interesting to see if PepsiCo executives can come up with alternate orange juice products consumers actually want to buy.

Would you be willing to pay a premium for watered down orange juice or will you just keep adding water on your own which in the end provides you with more bang for the buck?