Dad and Quaker's Snapple Fiasco

The June 16th Chicago Tribune business section had an article about the world's largest confectionery company, Cadbury Schweppes PLC, is trying to sell their US soft-drink business which would include Dr. Pepper, 7 Up, Canada Dry, and Snapple.

They're expected to get as much as $16 billion for it. Possible buyers might be Hershey, Tootsie Roll Industries, or Kraft.

I have never seen Dad as mad as he got when Quaker Oats spent what he considered to be way too much for a business which at the time was on the downswing. Dad would bleed Quaker if you cut him. His loyalty to that company was tremendous. He was livid with CEO Smithberg's decision, against all advice, to buy Snapple. He said, it would bring about Quaker's downfall, which it did.

Smithberg kept selling off parts of Quaker to prop up Snapple which was hemorrhaging money. Finally, Quaker ended up being bought by PepsiCo which had always wanted Gatorade. They came up with their own Gatorade-type products, but just couldn't break its hold on the sports drink segment of drinks.

Smithberg, in true CEO fashion, golden-parachuted his way out the door. I'm sure that if Dad had been Quaker's CEO, they would still be their own company.

FACTS ABOUT CADBURY SCHWEPPES:

Headquarters in London, empolyees about 60,000 worldwide, some major US brands: Trident, Dentyne, and Motts as well as the drinks already mentioned.

SOME FACTS ABOUT SNAPPLE:

Started in 1972 by childhood friends Leonard Marsh, Hyman Golden, and Arnold Greenberg who began selling their pure fruit drinks to health food stores around Greenwich Village in NYC.

The name Snapple comes from a discontinued carbonated apple soda that had a "snappy" apple taste.

In 1987 they began making teas with Snapple Lemon Tea the first effort. This continues to be the best-seller even now. Currently, Snapple makes 30 different juices, lemonades, and teas.

Somehow, I Need to be a CEO. Imagine getting to Screw Up and Walk Away with Millions. --RoadDog