Procter & Gamble steps back from beverages by selling its $550 million Sunny Delight brand. Meanwhile, Kraft Foods expands its beverage business with the purchase of Veryfine Products’ $150 million business.

P&G is selling Sunny Delight and Punica juice drinks to private equity firm J.W. Childs Associates, Boston. The deal is expected to close in the third quarter. Terms were not disclosed.

Childs will form Sunny Delight Beverages Co. in Cincinnati, where Sunny Delight is based, to run the business. A number of P&G drinks veterans will join the new company.

P&G veteran William Cyr has been named president-CEO of Sunny Delight Beverages. He had been VP-general manager of P&G’s North America juice-based drinks business. Childs’ operating partner Ray Rudy becomes chairman.

“This transaction enables the vast majority of our employees currently in the juice-based drink businesses to have continued employment,” said P&G President of Global Snacks & Beverages Jorge Montoya in a statement. “This [also] fits with our intent to sell these businesses to an owner that has beverages as a strategic priority, and it will allow us to focus on growing our key billion-dollar Folgers and Pringles brands.”

Meanwhile, Northfield, IL-based Kraft last week completed its purchase of privately held Veryfine, based in Littleton, MA, from the Rowse family, which owned Veryfine for the last 104 of its 139-year history. Terms were not disclosed. Kraft bought two Veryfine plants and a distribution center, and will manage the juice and water business from its Tarrytown, NY, offices. Veryfine staff remains on board.

Veryfine’s Fruit(2)O flavored water—with sales of $120 million—and its juices (sold primarily through vending machines) complement Kraft’s ready-to-drink business, led by Capri Sun and Kool-Aid Jammers.

“The Veryfine family of products offers consumers convenient beverages that taste delicious and help them meet their healthy living goals,” said Kraft CEO Roger K. Deromedi in a statement. In a separate development, last weekend, Deromedi was admitted to a hospital with an undiagnosed ailment, said a company spokesperson, who had no update yesterday on his condition. Kraft’s chairman Louis Camilleri will run the company in his absence.

“Fruit(2)0 has been a huge growth engine for Veryfine, growing to approximately $120 million in sales in just over three years,” said Veryfine President Sam Rowse in a statement. “Fruit(2)O also has tremendous brand potential, a big selling point for Kraft. Kraft has increased its presence in the juice business and considers Veryfine to be a very strong regional brand that can play across most flavors of fruits and vegetables.”

The Rowse family set aside $15 million of its proceeds from the sale for employee bonuses, based on payroll and length of service. Staffers working 20 years or more got 52 weeks pay and those working 10 to 20 years got 39 weeks pay.

Procter & Gamble steps back from beverages by selling its $550 million Sunny Delight brand. Meanwhile, Kraft Foods expands its beverage business with the purchase of Veryfine Products’ $150 million business.

P&G is selling Sunny Delight and Punica juice drinks to private equity firm J.W. Childs Associates, Boston. The deal is expected to close in the third quarter. Terms were not disclosed.

Childs will form Sunny Delight Beverages Co. in Cincinnati, where Sunny Delight is based, to run the business. A number of P&G drinks veterans will join the new company.

P&G veteran William Cyr has been named president-CEO of Sunny Delight Beverages. He had been VP-general manager of P&G’s North America juice-based drinks business. Childs’ operating partner Ray Rudy becomes chairman.

“This transaction enables the vast majority of our employees currently in the juice-based drink businesses to have continued employment,” said P&G President of Global Snacks & Beverages Jorge Montoya in a statement. “This [also] fits with our intent to sell these businesses to an owner that has beverages as a strategic priority, and it will allow us to focus on growing our key billion-dollar Folgers and Pringles brands.”

Meanwhile, Northfield, IL-based Kraft last week completed its purchase of privately held Veryfine, based in Littleton, MA, from the Rowse family, which owned Veryfine for the last 104 of its 139-year history. Terms were not disclosed. Kraft bought two Veryfine plants and a distribution center, and will manage the juice and water business from its Tarrytown, NY, offices. Veryfine staff remains on board.

Veryfine’s Fruit(2)O flavored water—with sales of $120 million—and its juices (sold primarily through vending machines) complement Kraft’s ready-to-drink business, led by Capri Sun and Kool-Aid Jammers.

“The Veryfine family of products offers consumers convenient beverages that taste delicious and help them meet their healthy living goals,” said Kraft CEO Roger K. Deromedi in a statement. In a separate development, last weekend, Deromedi was admitted to a hospital with an undiagnosed ailment, said a company spokesperson, who had no update yesterday on his condition. Kraft’s chairman Louis Camilleri will run the company in his absence.

“Fruit(2)0 has been a huge growth engine for Veryfine, growing to approximately $120 million in sales in just over three years,” said Veryfine President Sam Rowse in a statement. “Fruit(2)O also has tremendous brand potential, a big selling point for Kraft. Kraft has increased its presence in the juice business and considers Veryfine to be a very strong regional brand that can play across most flavors of fruits and vegetables.”

The Rowse family set aside $15 million of its proceeds from the sale for employee bonuses, based on payroll and length of service. Staffers working 20 years or more got 52 weeks pay and those working 10 to 20 years got 39 weeks pay.