ATLANTA -- The Coca-Cola Co. may be interested in acquiring Cadbury Schweppes plc's Snapple iced tea. According to Reuters, Beverage Digest, citing several Coca-Cola executives, reported that "Coke might be interestedor in words of some, should be interestedin buying Snapple to beef up its tea business."
Snapple, which sells flavored teas, lemonades and juice drinks, was the third-largest bottled tea brand in the first quarter, ahead of Coca-Cola's entire tea portfolio, which includes Nestea, Gold Peak and recently acquired Fuze, according to Beverage [image-nocss] Digest data.
Coke spokesperson Ben Deutsch declined to comment to Reuters.
"Coke still needs to do work on its North American tea portfolio," said Beverage Digest publisher John Sicher. "Snapple, though it hasn't been growing recently, could make sense for Coke but there's no indication yet that the brand is for sale."
British-based Cadbury, the world's largest confectionary company, is getting ready to separate its soft drink arm, which includes Dr Pepper, 7UP, Snapple and Hawaiian Punch. Earlier this week, Cadbury CEO Todd Stitzer said a sale of the $15.9 billion North American business was more likely than a spinoff.
Sources familiar with the situation said at least two groups of private-equity firms were bidding for the business. Private-equity firms generally fund their purchases with a lot debt, and often sell off underperforming units to help pay some of it down, Reuters said.
A Cadbury Americas Beverages spokesperson told the news agency that one of the strengths of Cadbury's drink business is its diverse portfolio. "As consumers are looking for flavors and variety and alternatives to carbonated soft drinks, our portfolio makes us well-positioned with brands like Snapple, Mott's and Hawaiian Punch," Charles Alfaro told Reuters.
Meanwhile, Snapple has added Classic Black Teas to its beverage line. The new teas feature traditional hot tea flavors such as English Breakfast, Earl Grey and Orange Pekoe.
Made with naturally brewed tea and lightly sweetened with real sugar, these genuine black tea blends contain 35-40 calories per serving and offer protective antioxidants, the Rye Brook, N.Y., company said.
"Our new Classic Black Teas will provide consumers with a traditional hot tea experience in a ready-to-drink offering," said Bryan Mazur, vice president and general manager of the tea category for Cadbury Schweppes Americas Beverages.
Snapple Classic Black Teas' taller, slimmer bottles provide an additional 1.5-oz. of liquid. Snapple Classic Black Teas are available at major retailers, grocery and convenience stores nationwide at a suggested retail price of $1.39.
Snapple is a leading brand in the beverage portfolio of Plano, Texas-based Cadbury Schweppes Americas Beverages (CSAB), a subsidiary division of Cadbury Schweppes plc. CSAB is one of the largest producers of soft drinks and premium beverages in the Americas. CSAB's brand portfolio includes Dr Pepper, 7 UP, Snapple, Mott's, RC Cola, A&W Root Beer, Sunkist Soda, Canada Dry, Hawaiian Punch, Schweppes, Diet Rite, Clamato, Mr & Mrs T Mixers, Holland House Mixers, Rose's, Mistic, Yoo-hoo, Orangina, IBC, Stewart's, Nantucket Nectars, and other consumer brands.
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