• 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.
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.
about it. It is full of
, flavor and more
The packaging of
Snapple plays out
Is neither a cola
drink nor a usual
drink like water.
i.e it is not a drink
for the ones who
are really serious
about their health,
nor the ones who
Was a fashion-
brand, compared to
other drinks in the
drink, i.e it was a
pure drink. It was
fruity, and hence
Was a fun drink. It
informal, natural, p
By the late 1980s the brand
had a strong presence and
enduring appeal in the
In 1984 the
was $4 million
and doubled by
By 1985 up to 1
annually in Boston
Was a lucrative
product of the 80’s
appealing to a lot of
people. Brand was
with consumers as it
had done things
grow at a
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
In 1987, Snapple hired professional
management from Carl Gilman to run sales &
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
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
By 1997, sales were down to
$440 million when Triarc
Companies bought the brand
Strategy of Carl
• Seeking suggestions
from focus groups on
improvement of label
• Spending more on
advertising and effective
exploitation of media for
• Intensifying independent
East Coast which
included hiring Ted
Landers for distribution
• Snapple witnessed its
highest sales from 1987
to 1994 because of these
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
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.
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
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.
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
Sales dropped by 20% per
1980’s – Napa Naturals, Natural
Quencher, SoHo, After the
Fall, Ginseng Rush, Elliot’s
Amazing, Old Tyme Soft
Sodas, Syfo, Original New York
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
• 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
• Tap the youth Market
• Brand Image
• Popularity of natural
no – preservative fruit
• Grow their brand as a
• Failed to sustain it’s
• Acquisitions shifted
Snapple’s positioning in
the consumer market
• Volatile consumer
• Multiple Management
• Discontinuance of
Media & Advertisement
• Regional Differences
• Weak in warm channels
• Strong Brand
• Product Line
• Full of variety and
• Innovative Advertising
• Hired Carl Gilman to
run sales and
marketing in order to
agency, Kirshenbaum, Bond
•Hired Wendy Kaufman
•Sponsored popular radio programs
•Made “100% Natural” their motto
•Held a Snapple Convention
attended by customers
• 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
• Sale of Snapple from Quaker to
• 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.
Providing Wide Product Line will not always be a
Choose brand ambassador wisely to portray strong
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