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View Full Version : Coke flirts with Snapple bid...



popologist
07-05-2007, 09:44 AM
as some of us predicted (or hoped for), Coke is looking to snap up Snapple (and Mott's juices as well) from Cadbury-Schweppes.

Coke weighs move for Snapple - Times Online (http://business.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article2030197.ece)

Dealscape: Dealwatch: Cadbury Schweppes (http://dealscape.thedealblogs.com/2007/07/dealwatch_cadbury_schweppes.php)

Ram0n C0keah0lic
07-05-2007, 11:28 AM
Interesting... let's see what happens, Coca-Cola has been in the fruit teas segment before with Fruitopia (that BTW here in Mexico completely failed)... and let's see if Cadbury Schweppes lets it go...

popologist
07-05-2007, 12:27 PM
i've been hoping coke would grab snapple for awhile. it's a well-known brand that i think coke can rejuvenate. fruitopia just never really seemed to catch on... and, i have to admit, most of the flavors tasted bad. but, snapple... i buy their tea all the time. i especially like their sugar-free peach tea. ;)

Mr Zabe
07-05-2007, 12:45 PM
In my limited exposure to various grocery stores,CS,national drug stores and big box stores.....Snapple appears to be doing quiet well. IMO, impulse customers who want a different drink other than soda pop, notice and buy Snapple drinks. IMO, Coca Cola will have obtained a nice profit center if they acquire Snapple.

DrPepperYummy
07-05-2007, 02:21 PM
In my limited exposure to various grocery stores,CS,national drug stores and big box stores.....Snapple appears to be doing quiet well. IMO, impulse customers who want a different drink other than soda pop, notice and buy Snapple drinks. IMO, Coca Cola will have obtained a nice profit center if they acquire Snapple.

Well I have said for a while coke would try to buy up snapple, but I still think they are making a mistake, sure there is growth but for the cost it will be to them (same reason I didn't think they'd buy arizona, its just not a value buy unlike glaceau as high as it is, total value buy)... I think they could better spend their money buying honest tea... even if i still think they will try to buy snapple I would vote for honest tea if I was on their board...

Honest tea would be a value buy and they have the distribution to bring it to the level of snapple because it really does seem to be a good brand just lacks national distribution and a marketing campaign the size of coke... despite the fact I'm a snapple person I will say that, cause I am honest. lol :P (puns intended)

fusion
07-05-2007, 02:24 PM
Snapple has become an old, tired brand again. It's going to take a significant investment other than the purchase price to get it up to speed, money that would be better spent elsewhere, in my opinion.

popologist
07-05-2007, 02:59 PM
i've never heard of honest tea.

as for snapple... i think it's a smart move. it will be much easier to re-establish snapple than to build a brand from scratch.

now, if only coke could buy red bull... ;)

fusion
07-05-2007, 09:12 PM
Honest Tea is based in the Maryland suburbs of DC. It's sold around here by Honickman Canada Dry and Haddon House (a specialty foods distributor).

Honest Beverages (http://www.honesttea.com/Index.php)


The first thing I would do if I was in charge of Snapple would be to change the bottle to something more eye-catching.

Mr Zabe
07-05-2007, 09:36 PM
Funny, I was thinking just the opposite. The goofy Snapple bottle
is what catches my eye as I scan the door looking for a tea-juice-sweet
drink. But hey, I still remember Wendi picking up the phones, LOL

I do see how the young crowd might relate to a more current bottle shape.

CitrusCola
07-05-2007, 09:47 PM
Coca-Cola's attempt to buy Snapple will help to drive up the selling price of their American Beverages business. Whether or not Coke ends up with Snapple probably depends on which private equity group ends up with the winning bid.

popologist
07-05-2007, 10:52 PM
will snapple and mott's cost more than glaceau? and should it?

BhamCokeman
07-05-2007, 10:58 PM
they are rolling Snapple out in a plastic 20 oz bottle, shaped like a Coke version DP bottle. I will check it out tomorrow somewhere. Its put out by 7 up, and boy do they suck around here, so they have it in just a few places.

fusion
07-05-2007, 11:13 PM
Going back almost ten years, I remember a line of 20oz snapple drinks - they had a grape one that tasted like real grapes. It was pretty awesome. They also had a sun tea. I don't recall the other flavors.

popologist
07-06-2007, 04:02 PM
most likely, coke will eliminate the glass packaging (isn't plastic cheaper?), and they'll probably give the brand a major make-over too.

the benefit is that they're not starting from nothing.

Mr Zabe
07-06-2007, 05:01 PM
Could it be?
How about Coca Cola keeps the current container (glass) and
drops the HFCS. Yes pure cane sugar sweetened Snapple.
No????
I just read today's Bevnet news.
http://www.bevnet.com/news/2007/07-06-2007-snapple_Coca-Cola_high-fructose.asp

Lepke
07-06-2007, 06:00 PM
Snapple is total garbage. Why would anyone other then coke or Cadbury stockholders “hope” or even care who buys this brand? When the original owners sold to Quaker oats did most people know or care? When Quaker oats sold Snapple to Triac beverage did anyone outside the industry care? When Cadbury Schweppes bought Triac did they improve a product that was cheapend buy the previous owners?

I remember when snapple Teas first the shelf and it was new and inovative. We had been drinking their juice, juice blends and sodas for sometime but no one had ever seen RTD tea in glass. There were canned iced teas out there that were undrinkable.

It wasn’t long after quaker oats bough the brand that quality started going down and has been declining ever since.

So you people think that Coke will improve this brand? You must be on drugs. Coke is in this for profit and nothing more, the best you can hope for is that the product won’t get any worse.

And buy the way Honestea is one of the best brands out there in my opinion.

Dr Pepper 70
07-06-2007, 07:20 PM
Coke might be wanting Snapple, but that doesn't mean they will get it.

Everyone is assuming since they are looking at Snapple they will get it. The last time I checked they don't own Snapple. Cadbury might have a little say.

As for the above post. Dead on!! Snapple at present time is not all that great and I can't see Coke doing anything with it if they did get it.

Mr Zabe
07-06-2007, 07:25 PM
You guys are probably right. I just had a thing for Wendy,the Snapple girl. LOL

popologist
07-06-2007, 08:10 PM
what's with all the anger? it's just tea...

geesh!

SamC
07-06-2007, 09:04 PM
IMHO,

I do not see a lot of value in Snapple for KO.

It has changed hands at least four times that I can remember, as outlined in the article, including several well run companies, none of whom were able to change the steady decline that has persisted for more than a decade. Snapple was, it appears, just a "flash in the pan" product that rode being "unique" and being the original sponsor of Rush Limbaugh. Now it has plenty of replicas.

Further, any deal would void KO's tie in with Nestle, forcing it to either buy or sell the partnership. And Snapple has its own distributors, seperate from the KO system, with their own perpetual contracts. So CCBCC, CCE, etc, would not be in the Snapple distribution business, and would either demand the continuation of a seperate non-soda product line (Minute Maid, Nestle, etc) or add non-Coke products to their line, as is their right if Coke has no equilivant product.

But mostly, REMEMBER FRUTIOPIA. All of KO's supposed power in a product that DID have the KO bottlers behind it. And it FAILED TOTALLY.

IMHO, KO, which cannot buy the soda business (it already owns Dr Pepper in most countries outside North America and some parts of Europe) is trying to push the bid, and thus the debt service load, of whoever gets the company with a faux bid.

Mr Zabe
07-06-2007, 09:38 PM
Ok, my last thought.
This is based purely on sentiment. LOL
The glass bottle design says it all.
IMHO the Snapple bottle was in part a subliminal message that meant
drinking Snapple was like savoring Wendy's unique shaped
buttocks. This was a marketing first. The short stubby bottle
up till then had not been used to sell tea-fruit drinks.

I still think there is a good deal of brand good will for Snapple.
After all thanks to Jlo and Biancy the buttocks is back in vogue.

Yes I have too much time on my hands. LOL

reset man
07-06-2007, 10:17 PM
If the acquisition takes place I'm wondering what it will mean for other Snapple Beverage Group owned products: Mistic, Stewart's, Orangina and Nantucket Nectars?

reset man
07-06-2007, 10:27 PM
Also wondering why a new owner of Cadbury products would want to let Snapple go to Coke. It will uncomplete their portfolio of drinks without an RTD tea and make their competition stronger. Snapple may be dipping but it is still a strong brand and IMO the better product of the top 3 including Lipton and Arizona.

fusion
07-06-2007, 10:32 PM
Further, any deal would void KO's tie in with Nestle, forcing it to either buy or sell the partnership. And Snapple has its own distributors, seperate from the KO system, with their own perpetual contracts. So CCBCC, CCE, etc, would not be in the Snapple distribution business, and would either demand the continuation of a seperate non-soda product line (Minute Maid, Nestle, etc) or add non-Coke products to their line, as is their right if Coke has no equilivant product.



Actually, they dissolved the joint venture earlier this year in the US. Now, KO is the master distributor of Nestle and Enviga (no mention of Gold Peak, though I would assume it's part of the deal as well).

Lepke
07-07-2007, 02:18 AM
IMHO,

Snapple was, it appears, just a "flash in the pan" product that rode being "unique" and being the original sponsor of Rush Limbaugh. Now it has plenty of replicas.

.



Common, give credit where itís due. They did create an entire new category. There was nothing like Snapple teas before Snapple.