Cadbury Schweppes plc announced yesterday that its Mott’s subsidiary has entered into an agreement to purchase the ReaLemon and ReaLime brands from Eagle Family Foods Inc. for 90 million pounds sterling (US$128 million). The ReaLemon and ReaLime brands reported net sales of 44 million pounds sterling (US$62 million) in the year ended June 2000. The transaction, which requires regulatory approval, is expected to be completed by early autumn 2001.
John Sunderland, CEO of Cadbury Schweppes, commented, “This acquisition supports Mott’s strategy of focusing on profitable niche brands. It complements Mott’s existing range of ingredient products as well as opening new channels of distribution. Opportunities for value creation are significant and the acquisition will be immediately enhancing to underlying earnings.”
ReaLemon and ReaLime, synonymous with lemon and lime juice for millions of Americans, were created in 1934 and 1947 respectively. Made with 100% real fruit blended to its natural strength, ReaLemon and ReaLime are used as an alternative to freshly squeezed lemon and lime juice and are ingredients in marinades, salad dressings as well as in the preparation of poultry, vegetables and seafood, in addition to baking. ReaLemon is also used in beverages such as iced tea, lemonade and mixed alcoholic drinks. They are the number one brands in the shelf-stable lemon and lime juice category with a 48% market share(1) and enjoy an awareness level of nearly 100%.
The acquisition of ReaLemon and ReaLime brands brings a number of important benefits to Mott’s. ReaLemon and ReaLime’s leadership position in the lemon and lime category complements Mott’s portfolio of leading niche ingredient brands, and its strong presence in the grocery, mass merchandiser, membership clubs and food service channels, complements Mott’s distribution network.
The transaction will be funded from Cadbury Schweppes’ existing debt facilities.
Mott’s Headquartered in Stamford, Connecticut, Mott’s is the United States’ leading producer of branded apple sauce and apple juice. Other well-known products include Mott’s Fruitsations, Hawaiian Punch fruit drinks, Clamato, Mauna La’i tropical juice drinks, Grandma’s Molasses, the number one brand of molasses in the US, Holland House and Mr & Mrs T, the top selling cocktail mixers in the United States. More information about Mott’s can be found on its Web site www.motts.com.
Cadbury Schweppes is a major global company that manufactures, markets and distributes branded beverages and confectionery products around the world. With origins stretching back over 200 years, today Cadbury Schweppes’ products — which include brands like Cadbury, Schweppes, Dr Pepper, Snapple, Trebor and Bassett — are enjoyed in almost 200 countries across the world. Employing over 36,000 people, Cadbury Schweppes is the world’s third largest soft drinks company and the fourth largest confectionery company.
(1) ACNielsen volume market share for calendar year 2000.