Mott’s Inc., a wholly-owned subsidiary of London-based Cadbury Schweppes plc (NYSE: CSG), announced yesterday it had agreed to acquire the ReaLemon and ReaLime brands and related assets from Eagle Family Foods, Inc. for $128 million. The acquisition includes the global rights to the ReaLemon and ReaLime trademarks. The transaction, which requires regulatory approval, is expected to be completed within the next two months.
“We see increased potential for this category as adjacent categories such as fish and seafood sauces, salad dressings and meat marinades are experiencing healthy growth trends,” said Brad Irwin, president, Mott’s Inc. “Furthermore, the ReaLemon and ReaLime brands complement the Mott’s Clamato brand as staples in Canada’s favorite cocktail, the Bloody Caesar.”
The ReaLemon and ReaLime business currently employs 56 people at its 110,562 square-foot manufacturing facility located in Waterloo, N. Y. All of those employees will become members of the Mott’s organization. No sales, marketing or corporate administrative functions are included in the acquisition. Mott’s plans to employ a few people to market and sell these brands from its headquarters in Stamford, Conn.
The ReaLemon and ReaLime brands were created in 1934 and 1947 respectively and are category leaders in the shelf-stable lemon and lime juice market. The brands enjoy unaided brand awareness of 90 percent and total brand awareness of 100 percent. The ReaLemon and ReaLime brands have a market share of 48 percent, as reported by ACNielsen for the year ending 2000, with the next largest competitor at 3 percent. The private label sector represents 42 percent of the market.
ReaLemon and ReaLime are packaged in 8 and 32-ounce glass bottles, 15-ounce plastic bottles and 2.5- to 8-ounce lemon or lime shaped containers. Each product is made with real fruit concentrate and is 100 percent juice. ReaLemon and ReaLime provide the taste of premium quality fresh lemons and limes, yet are more convenient, economical and consistent in taste.
Mott’s Inc., headquartered in Stamford, Conn., is the nation’s leading producer of branded apple sauce and apple juice. Other well-known products made by Mott’s include Fruitsations, Hawaiian Punch fruit drinks, Clamato, Mauna La’i tropical juice drinks, Grandma’s Molasses, the number one brand of molasses in America, 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.