Dateline: April 7, 1997
Updated: April 8, 1997 - NY Post Story

Stern Says Yes To Snapple !

After a two year separation that was as bitter as a divorce, Howard and Snapple Beverages have made-up. With Quaker Oats' recent sale of Snapple for almost a one billion dollar loss, the new Snapple management is wasting no time getting back to it's roots which means coming back to Howard's show.

On today's show, Howard welcomed Snapple back during a local break at 7:55AM. Saying that he always liked the drink but that "politics" were involved when Quaker Oats decided to pull all of it's Ads from Howard's show a few years ago.


Courtesy Of...

NY Post
Neal Travis' New York

 

Stern makes Snapple decision

An executive of the reeling Quaker Oats conglomerate listening to Howard Stern yesterday morning would have choked on his breakfastcereal. There was Howard, again shilling on the radio for Snapple -- the product that will go down as Quaker's $2 billion mistake. It's no accident that Stern is back as Snapple's pitchman just 10 days after billionaire Nelson Peltz took the company off Quaker's hands for a bargain-basement $300 million. I understand Peltz made sure the top-ranked radio man would come aboard again before he signed the deal.

Neither Quaker nor Wall Street analysts ever understood how important Stern was to the sales of Snapple's ice teas and fruit drinks. He enthusiastically advertised the quirky product from the start. But when Quaker made its staggering $1.7 billion takeover 30 months ago, Stern was rudely dropped.

He may have been too raunchy for a company with "Quaker" in its name, but Stern's 18 million (orwhatever) fans do as he tells them. Stern made it clear how betrayed he felt and virtually told his listeners to boycott Snapple.

The result was a disaster for Quaker, which had paid way over the market price for the company and lost at least another $300 million as sales slumped. No one in the company seemed to have caught on to the Stern factor, although I wrote about it in this space two years ago.

Anyway, the savvy Peltz knew what had to be done. A former Broadway producer and something of a jet-setter, he's a big fan of the radio king, who was the spokesman for another of Peltz's Triarc Co. products, Mystic drinks, last year.

Peltz, I understand, made overtures to Stern and was assured he would forgive and forget and again pitch Snapple -- as long as it was out of Quaker's control. I'll bet what Peltz will do next is reinstate "Wendy the Snapple Lady" in print and TV commercials.

Copyright ©1997, N.Y.P. Holdings Inc.

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