1. BRAND FAILURES

2. QUAKER OAT'S SNAPPLE: FAILING TO UNDERSTAND THE ESSENCE OF THE BRAND

3. The Quaker Oats Company, founded in 1891 William D. Smithburg appointment as CEO in 1979

4. PURCHASE OF GATORADE IN 1983

5. The Rise of the Snapple Beverage Corporation Leonard Marsh Arnold Greenberg Hyman Golden UNADULTERATED FOOD PRODUCTS INC.

6. THOMAS H. LEE COMPANY

7. By July 1994, Snapple was the fastest growing beverage company. Second largest seller of single-serving juices

8. THE DECISION QUAKER ACQUIRED SNAPPLE IN DEC. 1994 FOR $1.7 BILLION

9. “We have an excellent sales and marketing team here at Gatorade. We believe we do know how to build brands, we do know how to advance businesses. And our expectation is that we will do the same as we take Snapple as well as Gatorade to the next level.” -Don Uzzi, President of the Quaker Oats Beverage Company, North America

10. QUAKER'S PLAN: TO EXPLOIT SYNERGIES BETWEEN SNAPPLE AND GATORADE BECOME THE 3RD LEADING BEVERAGE PRODUCER AND DISTRIBUTOR IN THE US

11. TROUBLE BEGINS TO BREW JULY 1994 - FASTEST GROWING BEVERAGE YEAR-END SHOWED SIGN OF SLOWDOWN

12. COMPETITION INTENSIFIED COCA COLA PEPSI-LIPTON ARIZONA ICE TEA NANTUCKET NECTAR MYSTIC

13. DELAY: MARKETING, OPERATIONAL AND ORGANIZATIONAL INITIATIVE DISTRIBUTION PROBLEMS $75 MILLION LOSS IN 1995

14. INVENTORY MANAGEMENT DIFFICULTIES DECREASE DEMAND CHANGING MARKET CONDITION 50% DECREASE IN SHARE PRICE VALUE

15. SNAPPLE'S LOOSE MANUFACTURING PROCESS WEEKS OF OUTPUTS INSTEAD OF DAYS RAW MATERIAL PROBLEMS

16. quot;I've never run away from a challenge, and I'm not running away from this onequot; William Smitsburg, former CEO, QUAKER OATS

17. PEPSICO AQUIRED QUAKER IN DECEMBER 2000 FOR $13.4 BILLION

18. While Gatorade was considered Smitsburg's greatest feat, it was a relatively smaller yet more publicized deal - the aquisition of Snapple - that will go down as Smitsburg's, and Quaker's, costliest mistake.

19. Snapple was sold to Triarc in 1997 for $300 million Triarc sold it to Cadbury Schweppes for $1.45 billion in September 2000 It was spun off in May 2008 to its current owners Dr. Peppers