Current Exhibits
Behind the Label: Cadbury Schweppes
hroughout the history of business, companies have been buying,
merging with, and selling one another. We see this in our constantly
changing world today. Think about AT&T Wireless. It was bought by
Cingular just a few years ago, but today it is back in the hands of AT&T.
Why do companies do this? To make more money and kill off competition.
To make more money, they acquire companies with a product similar to their original product like Ford acquiring Volvo. They may also try to expand their reach in the market by acquiring a product that is very different from their original product line. In 1978, Phillip Morris, the tobacco company, bought the Seven-Up Company. They wanted to make more money by targeting consumers with a different product. Companies might buy competing products to kill off competition. The buyer can either take the purchased company’s technology and ideas and use it to their advantage, or abandon it and eliminate the competition entirely.
In the soft drink industry, the buying and selling of companies has been happening for years. In 1986 Dr Pepper acquired the Seven-Up Company from Phillip Morris and created Dr Pepper/Seven-Up Inc. Nine years later, Cadbury Schweppes, maker of the Cadbury Crème Egg and Schweppes Tonic Water, bought Dr Pepper/Seven-Up, Inc. Three years later Cadbury Schweppes acquired the rights to Hawaiian Punch for $203 million dollars to add to their portfolio that already included Canada Dry and Mott’s. In 2000, Snapple, RC Cola, Mistic, and Stewarts became part of the family. Yoo-Hoo followed in 2002. Today their beverage portfolio includes over 30 national and international brands, with another potential buyout in the near future.
Take a moment now to look behind the scenes at the brands owned by Cadbury Schweppes.
