Business Strategy Hub
Who Owns Sunkist Feature Image by Eiliv Aceron

Who Owns Sunkist?

Sunkist is a soft drink brand based in Valencia, California. The brand was launched in 1979 by Sunkist Growers Inc., an American citrus growers’ non-stock membership cooperative. However, the cooperative got the idea from Mark Stevens. Sunkist’s main competitors are orange-flavored soft drinks, including Fanta and Orange Crush.

Sunkist is known for its orange and citrus-flavored soft drinks. This beverage category is facing scrutiny from authorities and consumer groups. In 2023, the FDA proposed banning brominated vegetable oil (BVO) used in citrus-flavored sodas.

The move came after studies determined the ingredient may have adverse health effects in humans. Sunkist’s competitors, like Sun Drop, are reformulating their sodas to remove BVO and comply with regulations. [1]

Sunkist sodas are sold globally through retail and restaurant chains. This business model exposes the brand to several challenges as more restaurants and retailers push for healthier options.

In May 2023, KFC axed Sunkist orange fizzy drink from its Australian menu and replaced it with a sugar-free version. The move angered many Aussies, who prefer Sunkist Soda over Sunkist Zero Sugar. KFC also replaced apple juice with sparkling water as part of its plan to innovate its offerings. [2]

Sunkist is one of the world’s top-selling orange fizzy drinks. The brand is diversifying its product variety to cater to health-conscious consumers. In Aug 2023, Sunkist Orange Water C launched in Indonesia.

The new variant is a hybrid isotonic drink that replenishes lost electrolytes. It joins the vitamin C-rich Sunkist Lemon Water C in the Indonesian market. But who owns Sunkist? [3]

Who is Sunkist’s Parent Company?

Sunkist Soda is a product of Keurig Dr Pepper, an American beverage company founded in 2018 and based in Plano, Texas. However, Sunkist Growers, Inc. owns the Sunkist trademark and licenses it to Keurig Dr Pepper (KDP).

KDP has the rights to produce and distribute Sunkist Soda globally. Since its creation in 1979, Sunkist has promoted itself as the only caffeinated orange soft drink on the market with an extra kick. Consumers can combine two scoops of vanilla ice cream and Sunkist Orange, creating the ideal summertime refreshment. [4]

Sunkist Growers focuses more on its farmers’ cooperative than the soft drink business. In Oct 2023, Sunkist Growers announced new sales strategies and marketing and merchandising programs ahead of the California citrus season.

The cooperative offers 40 conventional and organic citrus varieties, including oranges, lemons, mandarins, grapefruit, tangerines, and tangelos. [5]

Sunkist Growers has several trademark licensing deals, including Sunkist soft drinks, fruit gems, fruit snacks, baking mixes, NFC orange juices, and vitamin C & supplements. The cooperative is expanding into the Traditional Chinese Medicine (TCM) niche to boost sales. In Nov 2023, Sunkist Growers partnered with Edelman Hong Kong to show Hong Kongers how citrus can help with their wellbeing. The brand created the Sunkist Citric Essence qi balancing formula and launched a platform for people to share and preserve their recipes.

Its plan is to educate Hong Kongers on the health benefits of the Sunkist Navel orange. [6]

Keurig Dr Pepper produces several Sunkist flavors, including Orange, Diet Orange, Grape, Strawberry, Pineapple, Cherry Limeade, Lemonade, Peach, and Fruit Punch. It also offers combos like Strawberry Lemonade, Watermelon Lemonade, and Orange Mango.

In Q1 2023, the company posted excellent performance in the US liquid refreshment beverages (LRB) category, with 13.6% retail dollar consumption. This segment was driven by Dr Pepper, Canada Dry, A&W, Sunkist, Squirt, and Crush CSDs. [7]

Image Credit Luke Michael

Image Credit: Luke Michael

Sunkist Ownership History

Sunkist Growers launched the Sunkist soda brand in 1979. The cooperative was founded in 1893 by Edward Dreher as the Southern California Fruit Exchange to support fruit growers. By the 1930s, one in every five Sunkist oranges was consumed in juice form. Sunkist juice was America’s second most popular soda fountain drink after Coca-Cola.

Sunkist only produced natural orange juice, with no added ingredients like Sunkist soda. The leap from orange juice to orange soda occurred after Sunkist Growers got a soft drink idea from Mark Stevens.

In the 1970s, the cooperative put the concept through extensive R&D. They researched the perfect taste, color, and carbonation levels and developed the recipe for Sunkist Orange Soda. In 1979, Sunkist licensed their name to General Cinema Corp. for a new soft drink. General Cinema was an independent Pepsi bottler with the experience and resources to mass-produce Sunkist Orange Soda. [8]

Sunkist soda went national after its launch thanks to franchising deals with leading Coca-Cola and Pepsi-Cola bottlers. By 1980, Sunkist Orange Soda was the #1 orange soda in the US.

The brand’s producer changed from General Cinema Corp. to Del Monte in 1984. Cadbury Schweppes secured the license in 1986 and handed it over to Keurig Dr Pepper after mergers and demergers.

In Oct 2020, Keurig Dr Pepper partnered with Honickman Companies to sell and distribute KDP brands in 18 counties. The deal extended Sunkist’s reach to 17 million people in New York and New Jersey. [9]

Sunkist Growers, Inc. licensed several companies to produce Sunkist soda, including the UK’s Nichols PLC, Australia’s Asahi Beverages, and the Philippines’ Asia Brewery.

In Oct 2023, Asia Brewery launched Sunkist Zero Sugar to replace its Sunkist Freshie range. This carbonated drink comes in apple and yogurt flavors. It offers iron, calcium, and vitamin B12 to strengthen consumers’ immunity. [10]

Image Credit Dennys Dugarte

Image Credit: Dennys Dugarte

Sunkist Shareholder Structure

Sunkist is a trademark of Sunkist Growers, Inc., America’s oldest operating citrus cooperative. The cooperative is owned by California and Arizona growers who farm oranges, lemons, limes, grapefruit, and tangerines across 300,000 acres.

As of 2023, Sunkist operated 20 packing facilities. The cooperative sells juice, fresh fruits, and processed products globally to consumers, retailers, manufacturers, and food service providers. [11]

Sunkist Growers is a farmer-owned cooperative. Farmers in the cooperative make decisions together and share profits. A portion of the income is reinvested into the business.

As of Feb 2023, Sunkist Growers, Inc. had over 1,500 growers in its membership. They own the cooperative and its trademark, including Sunkist soda. Most of its grower members are small family farmers. They have been passing down the citrus-growing tradition for generations. [12]

 References & more information

  1. Gibson, K. (2023, Nov 3). FDA proposes banning ingredients found in some citrus-flavored sodas. CBS MoneyWatch
  2. Scanlan, R. (2023, May 18). Fury as KFC scraps popular soft drink from Australian menu. News Australia
  3. Hong, T. (2023, Aug 21). Sunkist Orange Water C debuts in Indonesia. Mini Me Insights
  4. Sunkist Growers, Inc. (2022, Dec 20). Sunkist Soda, Orange 20 Fl Oz. Northland Food
  5. Colleen, C. (2023, Oct 16). Sunkist showcases new programs at IFPA. Fruitnet.com
  6. LBB Staff (2023, Nov 9). Sunkist Taps into Traditional Chinese Medicine to Showcase the Benefits of California-Grown Citrus in Hong Kong. LBB Online
  7. Keurig Dr Pepper Inc. (2023, May 1). Keurig Dr Pepper reports Q1 2023 results and reaffirms guidance for 2023. Vending Market Watch
  8. TK Staff (2021, Jun 4). Who Makes Sunkist Soda: America’s #1 Orange Soda. Toasty Kettle
  9. Keurig Dr Pepper (2020, Oct 28). Keurig Dr Pepper gains sales and distribution of brands in New York and New Jersey with Honickman Companies. PRNewswire
  10. Hong, T. (2023, Oct 7). Asia Brewery Inc. unveils Sunkist Zero Sugar with health benefits. Mini Me Insights
  11. Dun & Bradstreet (2023, Apr 20). Sunkist Growers, Inc.: Company Profile. DnB.com
  12. The Packer Staff (2023, Feb 21). Sunkist marks 130 years as a grower-owned cooperative. ThePacker.com
  13. Orange Image by Luke Michael
  14. Soda Image by Dennys Dugarte
  15. Feature Image by Eiliv Aceron

Tell us what you think? Did you find this article interesting?                                                   
Share your thoughts and experiences in the comments section below.

Kevin Johnson

Add comment