Kardashian Featured In T-Mobile Super Bowl Ads Coke, Hornets Renew Long-Term Deal Pepsi Signs Irving For More "Uncle Drew" Episodes Pepsi, NFL Promoting Heavily Through Digital Lions' Stafford In New Pepsi Promo UM, Coca-Cola Ticket Promotion Pulled PepsiCo CEO Backs Goodell Amid Scandals Pepsi Promo Offers Fans Free 49ers Tix Weekend Plans With PepsiCo's Amanda Helm Dew Tour Amateur Event Headed To Europe
Upcoming Conferences and Events
SBD/3/Sponsorships Advertising Marketing
QUAKER OATS COMMITS "CEREAL MURDER" AND PURCHASES SNAPPLE
Published November 3, 1994
"In a deal that will create the nation's third-largest soft- drink company," Quaker Oats said Wednesday it is paying $1.7B in cash to acquire Snapple Beverages. Quaker Oats Chair-CEO William Smithburg characterized the merger as an "offensive move to enhance" Quaker's portfolio of products. Securites Corp.'s John Curti: "It's no secret that Quaker was being stalked by both Coca-Cola and PepsiCo. I think there was a defensive strategy here" (Ronald Yates, CHICAGO TRIBUNE, 11/3). By purchasing Snapple, Quaker -- parent company of Gatorade -- plans to strengthen Gatorade and Snapple sales in markets where they have been traditionally weak. Quaker spokesperson Patti Jo Sinopoli: "We plan on taking Snapple where Gatorade has been and taking Gatorade where Snapple has been" (Lisa Respers, L.A. TIMES, 11/3). The Quaker Oats offer was announced as Snapple reported that its third-quarter earnings had "plummeted" 74% to $7M in the third quarter (Martin Peers, N.Y. POST, 11/3). NBR's Nancy Seifert called the deal a "cereal murder" for investors, as Quaker stock dropped 7 3/4 to 67 1/8. NBR's Diane Eastabrook reports a "fierce" iced-tea war should follow by next summer (PBS, 11/2).