Snapple was founded in 1972 and grew to national recognition in the 1990s. It was purchased by Quaker in 1994 for $1.7 billion, but Quaker struggled to manage Snapple's culture and sold it in 1997 for a $1.4 billion loss. Triarc purchased Snapple and was able to revive it by returning to its original branding and distribution strategies, later selling it for a $1.25 billion profit in 2000.

2. • 1972 - Snapple was founded by Leonard Marsh, Hyman
Golden, and Arnold Greenberg in New York.
• 1990 – Snapple emerged as a nationally recognized
brand in the beverage industry.
• 1994 – Quaker purchased Snapple for $1.7 billion.
• 1997 – Quaker sells Snapple to Triarc group at $300
million, a loss of $1.4 billion over 4 years.
• 2000 – Triarc group sells Snapple to Cadbury Schweppes
for $1.45 billion, a profit of $1.25 billion over 3 years.

3. Arnie Greenberg, Leonard Marsh and Hyman Golden
went into business selling all-natural apple juice to
health food stores in Greenwich village, in 1972.
Business grew using internally generated funds. It
built a strong network of distributors across New York
City. Expansion of distribution lead to a turnover of
$4 million in 1984 and $8 million in 1986.
Snapple managed to rope in tennis star Ivan Lendl for
several ads, even though it was an idea which
eventually faded away.

4. Had something
essentially sensual
about it. It is full of
variety, imagination
, flavor and more
new combinations
The packaging of
Snapple plays out
the taste
experience.
Is neither a cola
drink nor a usual
drink like water.
Has in-betweenity,
i.e it is not a drink
for the ones who
are really serious
about their health,
nor the ones who
aren't.
Was a fashion-
sensitive and
quirky
brand, compared to
other drinks in the
market.
An authentic
drink, i.e it was a
pure drink. It was
fruity, and hence
healthy.
Was a fun drink. It
was
informal, natural, p
ersonal and
playful.

5. By the late 1980s the brand
had a strong presence and
enduring appeal in the
United States
In 1984 the
annual turnover
was $4 million
and doubled by
1986
By 1985 up to 1
million cases
distributed
annually in Boston
only
Was a lucrative
product of the 80’s
appealing to a lot of
people. Brand was
strongly connected
with consumers as it
had done things
differently
Less
competition in
this category
helped
Snapple to
grow at a
faster pace

6. The success story of the brand was so exemplary that it created a buzz and was
discussed in many media….
Carl Gilman an experienced professional from Beverage Industry was hired to run
sales and marketing
Under his supervision, advertising budget was increased to $1 million & the
distribution system was intensified
The advertising agency Kirshenbaum, Bond & Partners adopted the “100% Natural”
as their main advertising mantra and even aired the events that really happened.
Wendy Kaufman was appointed as the spokesmodel and was a sucess
Established as a FASHION BRAND

7. In 1987, Snapple hired professional
management from Carl Gilman to run sales &
marketing.
In 1994, the management of Quaker Oats took
over the reins.
From 1994 to 1997, there were several
changes in management made by Quaker.
In 1997, Triarc Companies bought the brand
and management was handed over to Mike
Weinstein.

8. In 1992, control of the company
was sold to the Thomas H. Lee
Company in a leveraged buyout
and subsequent public offering
In 1994, T. H. Lee sold it to
Quaker Oats for $1.7 billion in
cash with sales running at $674
million
By 1997, sales were down to
$440 million when Triarc
Companies bought the brand

9. Strategy of Carl
Gilman
• Seeking suggestions
from focus groups on
improvement of label
design.
• Spending more on
advertising and effective
exploitation of media for
brand promotion.
• Intensifying independent
distribution throughout
East Coast which
included hiring Ted
Landers for distribution
in Boston.
Result
• Snapple witnessed its
highest sales from 1987
to 1994 because of these
marketing strategies.

10. Strategy of Quaker
Following the huge success with
Gatorade, they tried to repeat similar marketing
strategies with Snapple.
Tried to market Gatorade and Snapple
complementarily, with simultaneous movement
of Gatorade in the cold channel & Snapple in
the warm channel.
Cut down costs on advertising and severed
media relations.
Introduced Snapple in larger container sizes.
Tried to convince distributors to give up
Snapple’s supermarket accounts to Quaker in
exchange for right to distribute Gatorade to the
rest of their accounts.
Result
Decline in sales.
Distributors did not agree to cede rights to
Snapple’s supermarket accounts.
Snapple failed to make bigger presence in the
supermarkets and remained confined to cold
channels.
Termination of contracts with Howard Stern &
Wendy Kaufman led to growing unpopularity
amongst general consumers and even
provoked negative publicity from Stern.
Attempt to complement marketing schemes
between Gatorade and Snapple hand-in-hand
resulted in unwarranted competition between
these two brands, wherein Gatorade emerged
to be the preferred beverage.

11. Snapple sales declined from $674
million in 1994, to approx $600
million in 1995 to $500 million in
1996 to $440 million in 1997.
Despite the decline it maintained
number 1 position in 1995
because of its premium pricing
policy.
Sales dropped by 20% per
quarter.

12. 1980’s – Napa Naturals, Natural
Quencher, SoHo, After the
Fall, Ginseng Rush, Elliot’s
Amazing, Old Tyme Soft
Drink, Manly
Sodas, Syfo, Original New York
Seltzer
1990’s – Entry of Clearly
Canadian and Mistic
Pepsi along with Unilever(1992)-
Introduced Lipton iced
tea, advertising campaign with
Vendla drinking Lipton . Tetley
English beverage giant Pearle .
Coca-Cola (1994) Introduced
Fruitopia but could not do up to
the target. Arizona captured nearly
17% market share priced similarly
like Snapple.

13. • The takeover by Quaker was a managerial disaster due to misalignment
between Snapple and Quaker’s corporate culture. This caused losses to the
tune of $1.4 billion in a span of 4 years.
• It also suffered due to slow growth of Quaker themselves.
• Snapple also had to deal with stiff competition from new entrants into the
market such as Arizona Iced Teas, Nantucket Nectars and Mystic, hence
reducing Snapple’s market share.
• Suffered due to some poor decisions, which included the firing of popular
Snapple spokesmodel Wendy Kaufmann. They also snapped ties with radio
personalities Howard Stern and Rush Limbaugh.
• Quaker tried to incorporate the successful methods of Gatorade to
Snapple, which backfired, by changing its distribution, packaging and other
important relationships.

14. • Tap the youth Market
• Brand Image
• Popularity of natural
no – preservative fruit
juice
• Grow their brand as a
fashion beverage
• Competition
• Failed to sustain it’s
Brand Value
• Acquisitions shifted
Snapple’s positioning in
the consumer market
• Volatile consumer
preferences
• Multiple Management
Changes
• Discontinuance of
Media & Advertisement
• Distribution
• Regional Differences
• Weak in warm channels
including supermarket
sales
• Strong Brand
Image/Heritage
• Product Line
• Full of variety and
flavor
• Packaging
• Innovative Advertising
STRENGTH
WEAKNESS
OPPORTUNITIESTHREATS

15. The Snapple
founders
(1972-1992)
• Hired Carl Gilman to
run sales and
marketing in order to
increase its
distribution
Advertising
agency, Kirshenbaum, Bond
& Partners
•Hired Wendy Kaufman
•Sponsored popular radio programs
•Made “100% Natural” their motto
•Held a Snapple Convention
attended by customers
Quaker
(1994-1997)
• Purchased Snapple with the view
to combine it with Gatorade
• Tried to eliminate cost of
middlemen by shipping direct
from factory to supermarkets
• Saw risks in being associated
with controversial people and
terminated all such relationships
• Introduced larger pack sizes and
assortments but were limited by
distributor trucks and retail
display space
• Sale of Snapple from Quaker to
Triarc

16. Triarc
• The key to Triarc's success in reviving the brand was in remaining
true to the brand's culture. They rehired Wendy Kaufmann as the
spokesmodel of Snapple.
• They took a different approach, recognizing that Snapple meant
different things to different people. (Eg - fashionable, regular, quirky)
- none of which Quaker cultivated.
• They returned to the old style and tone of advertisements, as well as
reverting to the old style of packaging.
• They went back to the old Snapple distribution systems, which
would be mutually beneficial to Snapple as well as its partners.

17. Providing Wide Product Line will not always be a
successful bet
Choose brand ambassador wisely to portray strong
brand image
Innovative marketing strategy is beneficial for
promoting brand image
Targeting market on the basis of Geographical factor
There should be a good advertising line
Proper utilization of distribution channels in order to reach
maximum availability points