Leapin' Lizards! PepsiCo Agrees to Acquire South Beach Beverage Co.Business Editors PURCHASE, N.Y.--(BUSINESS WIRE)--Oct. 30, 2000 PepsiCo, Inc. today said it has reached a definitive agreement to acquire a majority stake in the South Beach Beverage Company, whose highly innovative SoBe brand has made it one of the industry's most successful companies. SoBe, whose distinctive logo includes two dueling The fighting of two persons, one against the other, at an appointed time and place, due to an earlier quarrel. If death results, the crime is murder. It differs from an affray in this, that the latter occurs on a sudden quarrel, while the former is always the result of design. green lizards, is the fastest growing brand in the rapidly expanding market for non-carbonated alternative beverages. SoBe, which built its business with a highly creative grassroots approach to marketing, offers a wide range of drinks with herbal herbal, early botanical book containing descriptions and illustrations of herbs and plants with their properties, chiefly those qualities that made them useful as medicines or condiments. Most of the herbals were written between c.1470 and c. ingredients. PepsiCo said that SoBe will be operated as a separate unit and continue to be led by its co-founder and chief executive John Bello (a.k.a. "Lizard lizard, a reptile of the order Squamata, which also includes the snake. Lizards form the suborder Sauria, and there are over 3,000 lizard species distributed throughout the world (except for the polar regions), with the greatest number found in warm climates. King"), who will retain an equity stake in the company. SoBe, which will continue to be based in Norwalk, Conn., will report through Pepsi-Cola North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. president and chief executive officer Gary Rodkin Gary Rodkin is the current CEO and President of ConAgra Foods, one of the largest food processing companies in North America. Rodkin was formerly the CEO and president of the North America division of PepsiCo from 1995 to 2005, and still is a special consultant through his exit . "SoBe is an extraordinary brand that will be terrific for PepsiCo," said Rodkin. "SoBe enables us to enter the exploding market for new age refreshment. At the same time it will expand our innovation capabilities and strengthen our link with young consumers. And based on the initial popularity of SoBe in several markets outside the U.S., the opportunities for the brand may be truly global." "We believe that the creative, entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. SoBe culture will work well alongside Pepsi-Cola Company, which has a long record of innovation and building youthful brands," Rodkin said. "We intend to give SoBe the freedom and autonomy to preserve its unique culture, plus direct access to the advantages of the larger Pepsi-Cola system." "For SoBe, PepsiCo is the perfect fit," said John Bello, chief executive officer and co-founder of SoBe. "Like Pepsi, SoBe is a special brand that has a special connection with consumers. Pepsi has the talent, resources, energy and commitment to help take SoBe to the next level. It will be a rocket ride. Lizard lovers rejoice!" The acquisition includes a full range of SoBe products, including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Pepsi-Cola Company's portfolio of non-carbonated beverages includes: Aquafina, the #1 brand of bottled water; Lipton, the #1 brand of ready-to-drink tea in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; Frappuccino, the #1 ready-to-drink coffee beverage; and FruitWorks, a new line of non-carbonated fruit drinks. These brands complement PepsiCo's much larger stable of carbonated car·bon·ate tr.v. car·bon·at·ed, car·bon·at·ing, car·bon·ates 1. To charge (a beverage, for example) with carbon dioxide gas. 2. To burn to carbon; carbonize. 3. To change into a carbonate. soft drink brands, including: Pepsi-Cola, Diet Pepsi Diet Pepsi is a low-calorie carbonated cola, introduced in 1964 as a variant of Pepsi-Cola with no sugar. Its current formula in the United States contains only the artificial sweetener aspartame, but the current Canadian formulation contains both aspartame (124mg/355ml) and , Pepsi ONE Pepsi ONE (so named because it contains one calorie per eight-fluid ounce (230 ml) serving) is a sugar-free cola, marketed by PepsiCo in the United States as an alternative to regular Pepsi and Diet Pepsi. , Mountain Dew mountain dew n. Illegally distilled corn liquor. , Sierra Mist Sierra Mist is a multi-lemon-lime flavored caffeine-free soft drink, introduced by PepsiCo in 2000 and rolled out nationally in 2003. It was made as a caffeine-free alternative to Mountain Dew and as a competitor to Sprite and 7 Up in the United States. , Slice and Mug. PepsiCo expects the transaction to be non-dilutive to earnings in 2001 and accretive in 2002. Terms of the agreement were not disclosed. J.P. Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. is serving as advisor to SoBe on the transaction. THE LOW-DOWN ON THE LIZARD: SOBE FACTS - Norwalk, CT-based South Beach Beverage Company - better known as "SoBe" - was co-founded in 1995 by John Bello, CEO and "Lizard King," and Tom Schwalm, VP and managing partner. - SoBe is one of the fastest growing brands in the rapidly expanding alternative beverage market. In the five years since its inception, SoBe has effectively created the category of beverages with herbal ingredients. - With an intensely loyal following among active young adults, SoBe's iconic logo features a pair of dueling lizards, which has become the basis for advertising, marketing and an apparel-merchandising program. The quintessential grassroots marketer, its unique advertising messages urge consumers: "SoBe Yourself." - Tightening its connection with active consumers, SoBe's sports marketing program, "Team Lizard," features a roster of edgy world-class athletes - from skateboarding to snowboarding and mountain biking. - More than doubling its case volume in each of the last three years, SoBe has a strong presence across multiple categories, including exotic teas, energy drinks, fruit blends, dairy drinks and other nutrient-enhanced beverages. - SoBe currently offers more than 30 different functional beverages. Its product lines include 3G Teas, 3C Elixirs, Powerline, Enlightenment, Lizard, Lean and Essentials, Ice, Sports System and Adrenaline Rush. - SoBe's package mix includes distinctive 14- and 20-ounce glass bottles, 20-ounce plastic sport bottles, 11.5-ounce cans and 11-ounce aseptic packages. SoBe is available at convenience stores, grocery stores, mass merchandisers, warehouse clubs, delis, gas marts, military bases and other outlets, as well as select restaurants and hotels. - SoBe has existing agreements with more than 300 independent distributors - including various soft drink bottlers, beer wholesalers and alternative beverage distributors - operating in parts of all 50 states and certain international markets. Its most highly developed markets are in the western United States. SoBe's availability outside the US includes Canada, Bermuda, Puerto Rico, the Caribbean, the United Kingdom and a few other markets. - Ten contract packers in North America currently produce SoBe. |
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