Tropicana, the famous orange juice brand, is on the brink of bankruptcy



Tropicana , which produces fruit-based drinks such as orange juice and apple juice , is reportedly in financial difficulty due to a shortage of oranges and changes in eating habits.

Tropicana is in big financial trouble | CNN Business
https://edition.cnn.com/2025/02/26/business/tropicana-orange-juice-bankruptcy/index.html



Founded in Florida in 1947 by Sicilian immigrant Anthony Rossi, Tropicana developed the 'evaporative drying machine' that removes water from juice, bringing about the technological innovation of '

concentrated juice ,' and has grown into a leading brand in the industry.

However, Tropicana's orange supply was hit hard by Hurricane Milton , which hit Florida in October 2024. Florida produces the majority of the oranges sold in the United States, but Matt Joyner, CEO of Florida Citrus Mutual, an orange growers' association in Florida, said, 'Hurricane Milton, which hit central Florida, caused severe impacts to approximately 70% of the orange farms in the state.'



In recent years, orange production in the United States has been

declining due to citrus greening , a bacterial infection that blocks key nutrients from orange trees.

Due to these changes in the environment, orange production in Florida is facing a crisis. In fact, Alico, a major supplier to Tropicana, announced in January 2025 that it would end its citrus cultivation operations in Florida, stating that 'orange production in Florida has declined by approximately 73% over the past 10 years. As a result, citrus cultivation in Florida is no longer economically viable.'

In addition, in recent years, consumers have been avoiding Tropicana juices, which are relatively high in sugar and calories, due to changes in consumer awareness of health. In response to this, Tropicana is launching a zero sugar line in 2023, but Beberage Digest 's Duane Stanford points out that 'it will be difficult to change the relationship Tropicana has built with its customers over nearly 80 years,' and 'Tropicana has focused on 100% orange juice so far, so it will take time for it to diversify into new businesses.'



Tropicana is struggling financially due to these factors, including climate change, changes in consumer attitudes, and rising prices in recent years. Tropicana's third quarter 2024 sales are down 4% from the previous quarter, and earnings are down about 10%, according to financial services magazine Debtwire. Tim Hines, head of credit research at Debtwire, said, 'Tropicana appears to be facing an uphill battle,' and foreign media CNN pointed out that 'Tropicana may be heading for bankruptcy.'

At the time of writing, Tropicana had not commented.

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