PepsiCo has agreed to sell its Tropicana and Naked Juice brands to PAI Partners, generating $3.3 billion in cash. Private equity fund PAI Partners has controlling investments in Refresco, the world’s largest independent bottler of beverages, which packages canned cocktails and beer, among other items.

PepsiCo announced Tuesday that the sale will generate pretax proceeds of $3.3 billion. It also will be retaining 39% ownership in a new joint venture to be formed.

Markets have speculated whether Pepsi would introduce a hard beverage, after rival The Coca-Cola Company launched Topo Chico hard seltzer. Pepsi till now has sold only non-alcoholic cocktail mixers, under the brand Neon Zebra.

Recent trademark filings by PepsiCo, however, indicate brand teams may be working on a hard seltzer. In June the company filed “intent to use” applications with the US Patent & Trademark Office (USPTO) for a hard seltzer under the name “Rockstar.”

Regaring a potential entry in hard seltzer, CEO Ramon Laguarta said last October, “[W]e look at every opportunity.”

“We will make decisions in the oming quarters whether this is an area where PepsiCo wants to play,” concluded Laguarta.

PepsiCo certainly have the funds to be a formidable competitor in ready-to-drink cocktails.

However, the new joint venture could provide a convenient way to launch hard seltzer or other beverage alcohol. Refresh announced just yesterday that it will acquire three US bottling plants from Coke, subject to regulatory approval.

Aiden Gentson