(TNS) — When it comes to breakfast the Tropicana brand is about as iconic as it gets in America.
Just about everyone can close their eyes and see a tall glass of orange juice waiting next to a side of toast and maybe some eggs and bacon.
The company was founded in 1947 and has been in just about every house in the country in the years since, but times are changing, and multiple reports indicated that Tropicana is in big-time trouble.
CNN reported that Tropicana’s revenue slipped 4% last quarter and its income dropped 10%. And, ominously, the site reported that its owners, PAI Partners, recently provided a $30 million emergency loan. Debtwire’s Tim Hynes said, per CNN, the loan shows “that they are a lender of last resort,” and are “not confident any value remains from their initial investment.”
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CNN also noted that PepsiCo., which owns a minority stake in Tropicana, “wrote down the value of its investment by $135 million last quarter.”
“Tropicana’s financial difficulties have raised concerns about how the company will manage its balance sheet,” Hynes said, according to CNN. “Tropicana faces an uphill battle.”
CNN named a number of issues leading to the decline, including Florida being hit by stronger hurricanes than ever before, insects wrecking orange groves, and consumers watching their intake of sugar. It said the Department of Agriculture expects this year’s orange production to be the lowest in 88 years.
Because of that, per CNN, while consumers have stopped buying as much orange juice, the price has still increased from $2.30 in 2020 to $4.50 in January for a 12-ounce bottle.