Pepsi Finds Fungicide Traces in Tropicana OJ

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PepsiCo Inc. said it has found traces of the unapproved fungicide carbendazim in its Tropicana orange juice, but at levels that don't raise government safety concerns.

Friday's disclosure comes after Coca-Cola Co., maker of the Simply and Minute Maid orange-juice brands, confirmed earlier this week that it had alerted the Food and Drug Administration in December after discovering carbendazim in its own and competitors' orange-juice products.

Use of the fungicide is widespread in Brazil, a supplier of orange juice to the U.S. The FDA has vowed to pull juice with higher than trace elements of the potentially harmful fungicide, which is 80 parts per billion or higher.

Both Coke and PepsiCo import orange juice from Brazil, although their primary source is Florida. The two companies are responsible for 59% of orange-juice sales in the U.S., according to Beverage Digest, an industry publication.

The discovery of low levels of carbendazim in orange juice in the U.S. prompted federal authorities to begin screening juice on supermarket shelves. It also has roiled prices of orange-juice futures.