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Volume 24 No. 156
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     Quaker Oats CEO Bill Smithburg is leading Quaker "into the
rowdiest marketing war of many summers, taking on the beverage
brutes Coca-Cola and PepsiCo in two categories," sports drinks
and natural beverages, according to a piece in the current
FORTUNE.  FORTUNE's Patricia Sellers writes that Smithburg
deserves credit for keeping Gatorade on "top of its game," as the
brand's visibility in pro leagues like the NBA is "unparalleled."
Sales hit $1.2B in '94, but Coke and Pepsi are "applying a full-
court press" with All-Sport and PowerAde.  Pepsi is increasing
All-Sport's ad budget by 40%, and, since '94, Gatorade's market
share has dropped three points to 81%.  Michael Jordan is "trying
to help Gatorade rebound," but he is "being double-teamed by"
Shaquille O'Neal and Ken Griffey, Jr., who pitch for All-Sport.
Smithburg says Gatorade, available in 27 countries, can remain
No. 1 worldwide (FORTUNE, 7/10 issue).
          MARKET SOURS ON SNAPPLE?  Shares of Quaker Oats fell in
     trading yesterday after the company warned that the
     acquisition of Snapple soft drinks "had been failing to live
     up to expectations."  Quaker told analysts that sales of its
     Snapple iced tea and juice drink brands are running 15%
     behind last year (FINANCIAL TIMES, 6/22).  In the current
     FINANCIAL WORLD, Jason Vogel asks, "Snapple shareholders
     made a killing selling out to Quaker.  What about Quaker
     shareholders" (FINANCIAL WORLD, 7/4 issue).  FORTUNE also
     notes that many feel Quaker overpaid for Snapple and that
     the brand "has a crowd of competition" (FORTUNE, 7/10).
          COKE FEELS LIFE:  Coca-Cola is expected to post "strong
     second quarter earnings fueled by continued double-digit
     growth internationally and healthy U.S. results," according
     to Chris Roush of the ATLANTA CONSTITUTION.  Overseas case
     sales are expected to increase 11-12%, while domestic sales
     could rise as much as 6% (ATLANTA CONSTITUTION, 6/22).