Snapple Beverage Group
Beverage company producing fruit drinks, teas, and specialty beverages.
PE-OWNED
Acquired by Sun Capital Partners2018-10-29
What Made It Great
Iconic beverage brand with strong consumer loyalty and quirky marketing
What PE Will Likely Do
Snapple will likely replace high-quality fruit juices, teas, and other natural ingredients with cheaper, lower-quality substitutes to reduce costs
Snapple will likely reduce package sizes for its products while maintaining or increasing prices (shrinkflation)
Snapple will likely switch to lower-cost suppliers and manufacturing processes, which could impact the taste and quality of its beverages
Snapple may alter its product recipes to further reduce costs, which could change the taste and flavor profiles of its iconic drinks
Snapple may consolidate its manufacturing operations, leading to the closure of some production facilities
Expected Timeline
“0 to 6 months months”
Minimal visible changes as ownership transition occurs
“6 to 12 months months”
Behind-the-scenes changes to suppliers, ingredients, and manufacturing processes begin
“12 to 24 months months”
Consumers start noticing quality differences in Snapple's products, and the brand's reputation may begin to suffer as complaints increase
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be vigilant for changes in the taste, quality, and packaging of Snapple products
Consider purchasing alternative, higher-quality beverage options if you notice a decline in Snapple's quality
Voice your concerns and feedback to Snapple and Sun Capital Partners if you notice significant changes to the products you enjoy
Alternatives
Look for family-owned or employee-owned businesses