PepsiCo Inc announced Tuesday a $ 3.3 billion sale of its Tropicana and other juice brands in North America to French private equity firm PAI Partners to simplify its product line and move away from high-sugar beverages.

The company that bought the orange juice manufacturer in 1998 for around € 3.3 billion.

The sale gives PepsiCo the funds to develop and expand its portfolio of health-focused snacks and calorie-free beverages, said CEO Ramon Laguarta as the company focuses on more profitable brands.

Rival Coca-Cola Co also streamlined its product range last year, discontinued its TaB Diet Soda and Coca-Cola Energy brands in the US, and sold its coconut water brand, ZICO.

“Companies are finding it difficult to provide effective marketing support behind an infinite number of brands, often competing on very similar occasions,” said Stephen Rannekleiv, Rabobank’s food and beverage analyst in May.

He added that companies want to bring new products to market that have been developed in-house.

The juice companies generated approximately $ 3 billion in net sales for PepsiCo in 2020, with operating profit margins below the group’s.

The deal is one of many food and beverage investments PAI has made in recent years. In 2019, Nestle SA sold its US ice cream business, including brands like Haagen-Dazs, to a PAI-backed joint venture worth $ 4 billion.

Centerview Partners is PepsiCo’s financial advisor on the transaction, while JP Morgan Securities LLC is advising PAI.