Quaker to sell Snapple

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Even as Foote, Cone & Belding, Chicago, was filming new commercials for Snapple, Quaker Oats announced it is unloading the brand to Triarc Cos., New York, for $300 million. That's a far cry from the $1.7 billion pricetag it paid for the beverage brand several years ago but Quaker said it will also recoup $250 million on taxes paid on previous capital gains for Snapple, raising the total proceeds to $550 million. The big question now is whether the brand will move to an agency currently handling Triarc, which owns Mistic Beverages, RC Cola and Arby's Restaurants, which is being sold. An executive at FCB said the agency, with the blessing of Quaker Chairman-President-CEO William Smithburg, will pursue the account, which now bills at least $40 million. But the new owner, which didn't return calls at presstime, could also choose Deutsch, New York, which handles Mistic or GSD&M, Austin, Texas, agency for RC Cola.

Copyright March 1997, Crain Communications Inc.

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