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Orange Juice Giant Confirms 12.5 Per Cent Price Hike Coming

11/27/2006  | CityNews.ca Staff

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Orange Juice Giant Confirms 12.5 Per Cent Price Hike Coming

If you're one of those people who buy the Tropicana brand of O.J. at your local grocery store, be prepared for sticker shock on the shelves. The manufacturer warns it's increasing the cost of a carton of the sweet drink by a whopping 12.5 percent in the New Year.

The popular brand is already among the most expensive on the market and its maker, Pepsi-QTG Canada, blames recent hurricanes and a citrus disease that has devastated orange crops in the Sunshine State for the sudden change.

Tropicana's high price comes from the fact it doesn't add water to its product, as many cheaper brands do.

"Florida oranges are the only ingredient in Tropicana Pure Premium Orange Juice," explains the company's Cheryl Radisa in a statement. "With the unprecedented damage to the Florida orange crops resulting in mounting supply and cost challenges, we have been forced to increase our price."

It claims the U.S. Department of Agriculture has estimated that the output from the state will be 17 percent lower this year, and that Tropicana buys 40 percent of all the oranges produced there. Without their availability, prices have to rise.

The company is quick to point out it's only their orange juice product that will be affected, but it's their biggest seller.

Does that mean the prices of other maker's O.J.will be going up as well? So far, competing companies haven't said much, but if a shortage affects one entity, it's likely to hit another just as hard.

So if you're an O.J. fan, you may want to stock up before the price increase hits. The Tropicana hike hits grocery shelves January 1, 2007.

 
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