Think of making a change and purchase a Snapple Route in NYC (one of the boroughs)

Any thoughts: Pro/Cons ??

What are your thoughts on trends with Snapple??
Issues ??
What should one pay?? Case count x Factor ?? What is the factor ??
New Products on the road ??

Any other thoughts would be great

from early history not necessarily today, Snapple controls made all difficult,,,

do you have $$ & time ? If so, have u considered building new brands from outside NY ? If so u can become a master for others & quintuple your returns / profits.

Snapple is simpler / may be best for you / NuBrand is higher risk/ much higher reward ...

i am not selling anything Danny just mixing up a thought for you ...

reply for more input, if you'd like ...


mixxify

They don't seem to be reacting to competition. Eveyone is coming out with value packaging and increasing volume. It seems Snapple wants to maximize profit, therefore raising prices, therefore selling less volume. I believe that's why you are seeing so many Snapple routes for sale. If you are being shown numbers shave 15-20% off to be on the safe side.

From a customer stand point, I have seen Snapple's facings on the glass in stores (CS and grocery) diminish. Usually two juice and 3 teas and that's it.

They have broadened their line with the addition of the premium 17.5oz line, and they went with real sugar in the core line, another smart move.

But I just don't know if the pricing is still there. Shop-Rite used to run a ton of $9.99 case sales, and I knew a guy who owned a route in northern NJ. He was making money hand over fist.

I'd say it's a fairly stable brand, but I wouldn't expect a lot of growth out of the route, personally. Arizona is kicking their butt all over the place - people just love that big 99¢ can. Snapple's answer is going to be a 16oz can for 79¢, I'm not sure if that's going to be enough.

It also depends on what else is on your truck. Just Snapple, or other brands?

Originally Posted by fusion

They have broadened their line with the addition of the premium 17.5oz line, and they went with real sugar in the core line, another smart move.

But I just don't know if the pricing is still there. Shop-Rite used to run a ton of $9.99 case sales, and I knew a guy who owned a route in northern NJ. He was making money hand over fist.

I'd say it's a fairly stable brand, but I wouldn't expect a lot of growth out of the route, personally. Arizona is kicking their butt all over the place - people just love that big 99¢ can. Snapple's answer is going to be a 16oz can for 79¢, I'm not sure if that's going to be enough.

It also depends on what else is on your truck. Just Snapple, or other brands?

From what I understand the $.79 16oz. isn't going to be their premium product. It's going to be the new mainstrean tea from concentrate that you see in the 16.9oz. PET 12pks.

So If I am looking ar purchasing a NY route, what seems to be the going rate ??

For Example:

100,000 case X Factor = Price

I have seen some priced at 5X. Some of my friends who have routes say that I should be paying between 3.0 to 4.0. Never pay for potential.. That is what they are telling me...

Also what Financing terms have you seen

Any guidance would be very helpful...