Unilever PLC has struck a deal with Coca-Cola Co. and soft-drink bottler Coca-Cola Femsa SAB to sell its soy beverage business in Latin America for $575 million as the Anglo-Dutch company continues to shuffle its portfolio of brands.

The beverage business, called AdeS, sells drinks that are a combination of soy milk and fruit juice. It has a presence in Brazil, Mexico, Argentina, Uruguay, Paraguay, Bolivia, Chile, and Colombia. Last year it turned net revenues of $284 million.

"This sale is a step in reshaping our portfolio in Latin America to deliver sustainable growth for Unilever and enables us to sharpen our focus, said Miguel Kozuszok, Executive Vice President of Latin America for Unilever.

Unilever has been shedding food brands in recent years and making acquisitions in the higher-margin, personal-care sector under Chief Executive Paul Polman, a strategy analysts have said gives it stronger growth prospects.

The company in 2014 agreed to sell its North American pasta sauces business under the Ragú and Bertolli brands to Japan's Mizkan Group for $2.15 billion. Before that, Unilever sold its Wish-Bone salad dressing to Pinnacle Foods Inc. for $580 million and Skippy peanut butter to Hormel Foods Corp. for $700 million.

The sale comes as Coca-Cola has been diversifying its portfolio in response to slowing soda sales as customers become more health conscious. The Atlanta-based beverage giant has been targeting emerging markets for growth amid sluggish sales in more-developed markets.

In January, Coca-Cola said it had agreed to buy part of Nigeria's largest juice maker, TGI Group's Chi Ltd., which also sells dairy and snacks, and would buy the rest of the company within three years. In August, Coke said it was buying a minority stake in Suja Life LLC, which makes organic, cold-pressed juices.

"The acquisition of AdeS marks another milestone for the Coca-Cola system in providing increased choice of nutritious and delicious products to our consumers," said Brian Smith, Latin America president for Coca-Cola.

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

(END) Dow Jones Newswires

June 01, 2016 10:45 ET (14:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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