A BELOVED juice brand is in “big financial trouble” after facing customer backlash due to higher prices and shrinkflation.
The family-favourite drink could be headed for bankruptcy due to a combination of factors including climate disasters, customers lowering their sugar intake, and pesky plant killing diseases.
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Created in 1947 by an immigrant from Sicily, Tropicana found its roots with a process of freezing concentrated orange juice.
But today Tropicana Brands Group, which owns Tropicana, Naked, KeVita and other beverages, is failing to squeeze out big profits.
The struggling firm’s income dropped by 10% last year according to Debtwire.
Among Tropicana’s woes are the supply shortages in orange-growing areas, which have been devastated by climate disasters such as hurricanes in Florida and intense droughts in Brazil.
In the U.S., Florida accounts for the majority of orange production.
Disease has also plagued the industry, due to a bacterial infection called citrus greening disease significantly affecting orange harvests.
This year, the U.S. Department of Agriculture expects orange production to be the lowest it has ever been in 88 years.
Adding insult to injury – consumers have also turned away from juice consumption, replacing the popular breakfast beverage with teas, sparkling water and energy drinks.
The juice giant is also being squashed between cheaper and higher end competitors – Coca-Cola’s budget brand Minute Maid is seeing rising popularity, as is the more expensive Simply brand of OJ.
Tropicana has also recently attempted shrinkflation – reducing the size of their bottle whilst maintaining the price – only to be met with backlash.
The average cost of orange juice has also nearly doubled since 2020, with a 12-ounce bottle costing $4.50 this January, compared to $2.30 for the same amount 5 years ago.
These rising prices have also come alongside higher egg prices in the U.S. due to avian flu.
This week, a furious customer ranted on X that Walmart was taking advantage of their shoppers by charging $8 for eggs.
