PepsiCo to sell Tropicana, Naked for $3.3 bln

PepsiCo's cutting out juice to juice its profits. The snack and beverage giant said Tuesday it's selling Tropicana, Naked and other juice brands in North America to French private equity firm PAI Partners.

But PepsiCo will retain a 39% stake in a newly formed joint venture and have exclusive rights to distribute the brands in the U.S. The move comes as the company aims to move away from sugary drinks that health-conscious customers are ditching.

PepsiCo CEO Ramon Laguarta said the sale will give the company the funds to develop health-focused snacks and zero-calorie beverages.

Like its rival, Coca-Cola, PepsiCo has been streamlining its product range to focus on more profitable brands. Operating profit margins for PepsiCo's juice businesses were below those of its other divisions.

Shares of PepsiCo, which have vastly underperformed the broader markets this year, rose in early trading Tuesday.