The quaker oats company was initially attracted to snapple because of its manufacturing and distribution network and quaker also believed that synergies would result from merging the snapple and gatorade brands. Quaker oats & snapple president of the quaker oats beverage company, north america1 by this time with the gatorade and snapple franchises accounting for a. Quaker oats' decision to sell its snapple beverages unit for an enormous $14-billion loss is one of many acquisitions that went bad for buyers other acquisitions that went sour include: december 1996: at&t corp spins off its ncr unit, valued at $34 billion, considerably less than the $748 billion at&t paid for the computer company in 1991. In a deal that will create the nation's third-largest soft drink company, quaker oats co said wednesday it is paying $17 billion in cash to acquire snapple beverage co''this merger creates a $2.
The quaker oats company and william d smithburg, defendants for this case around the acquisition of snapple beverage corporation (snapple) by quaker and. Made from the best stuff on earth, snapple has been making delicious fruit drinks since 1972 learn more about your favorite tea today. Quaker oats and snapple snapple as well as gatorade to the next level-don uzzi, president of the quaker oats beverage company, north america1. Pepsico's bid for quaker oats (a) case solution the beverages giant was closely monitoring all the possible strategic acquisitions in 1999 in the autumn of 2000, it appeared that the appropriate moment for an equity-financed acquisition had arrived.
Nearly a century old in 1999, quaker oats was a worldwide consumer goods company with annual sales of $4 7 billion in addition to its hot cereals, quaker oats and quaker instant oatmeal, the company's portfolio of brands included gatorade sports beverages, granola snack bars, life and cap'n crunch ready-to-eat cereals, and rice-a-roni and. Gatorade and snapple pour into fcb cone & belding snared quaker oats co's $35 million snapple and $65 million gatorade accounts president-beverages at quaker the snapple shift also. Snapple case study 1 and boost sales of their successful gatorade brandquaker understood snapple's success selling single servings in the cold channels and. Case study snapple company to produce a complete line of all-natural beverages, that was made from the best stuff on earth was bought by quaker oats. Success with gatorade persuaded smithburg he had a knack for the beverage business in fact, his lack of experience with snapple's system of independent distributors led to crucial miscalculations.
The quaker oats company saw snapple as an ideal acquisition candidate to grow its diverse but mundane company and enhance its beverage division, which already included the previously acquired company gatorade (nutt 17. Weiner v quaker oats company acquisition of snapple beverage corp (snapple) and beverages, including gatorade soft drink defendant. How snapple got it's juice back - snapple case study the quaker oats company bought snapple for $17 (gatorade had helped quaker to enter beverage. 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 america1 summary the quaker oats company, founded in 1891, is one of america's oldest food enterprises.
Snapple 1 what was the attraction of snapple to quaker oats quaker oats was a food company with four main areas of business: grain-based foods, bean-based foods, pet foods and beverages. Quacker oats and snapple merge case solution, using the power point example posted analyze any merger or acquisition deal of your choice in detail quaker oats used to be the grocery store legend. Quaker oats bought snapple in 1993 for an extravagant $17 billion dollars even though industry leaders thought it was only worth $700 million smithburg's strategy was to use the strength of snapple's distributors in the cold channel to help gatorade and use gatorade's strength in the supermarkets to help snapple.
The quaker oats company is a worldwide marketer of food and beverage products and has one of the most trusted brand names in the food business its products include quaker oats, rice-a-roni, and gatorade in many ways, quaker's recent history has been a tale of two beverages: gatorade and snapple. The quaker oats company, known as quaker, and gatorade quaker bought snapple for $17 to add gatorade to its arsenal of beverages and thus break into the. Quaker oats case study - free download as word doc (doc), pdf file (pdf), text file (txt) or read online for free the name the quaker oats company it all. Pepsico case study cost sharing/skill transfer with gatorade & other beverages( aquafina, sobe) cash flows help grow the company let go of quaker oats.