Hawaiian Punch background
In 1934, A. W. Leo, Tom Yates and Ralph Harrison developed Leo’s Hawaiian Punch, a blend of fruits such as pineapple, passion fruit, papaya and guava, to add to their line of ice cream toppings sold under the Pacific Citrus Products Company. In 1946, the company was bought and renamed Pacific Hawaiian Product Company, and introduced quart-sized bottles of concentrate for sale, and later manufactured ready-to-serve red Hawaiian Punch in 46-ounce cans in the 1950s. In 1955, frozen concentrate was distributed to grocery stores and Hawaiian Punch became a national brand. Soon after “Punchy,” the mascot, was introduced, and the companies brand image and advertising identified it a successful product (Kerin, 2007).
Over the next 30 years, Hawaiian Punch was bought out by RJ Reynolds (RJR) Company, Del Monte, who expanded distribution channels and introduced new flavors, Proctor and Gamble, who established the gallon bottle as a leading juice drink package and distributed at supermarkets and retail outlets via its bottle network in the carbonated drink aisle and independent food broker and warehouse networks in the juice aisle, and lastly Cadbury Schweppes, PLC (Kerin, 2007).
In 2004, three Cadbury Schweppes, PLC business units—Dr Pepper/Seven Up; Snapple Beverage Group; and Mott’s—integrated to form Cadbury Schweppes Americas Beverages (Kerin, 2007). At the time, the Hawaiian Punch line consisted of 11 flavors and packaging included a 1-gallon bottle, a half-gallon bottle, a 2-liter bottle, a 20-ounce bottle, a 6.75-ounce single-serve standup pouch, and a 12-ounce can. Hawaiian Punch Lite had also recently been introduced and contained 60 percent less sugar (Kerin, 2007).
Fruit juice market
Labeled a juice drink, Hawaiian Punch is manufactured with fresh juice or concentrate, not exceeding 24 percent, to which sweetener and water are added. Juice drinks are second to the 100 percent juice category with 33.7 percent share, and are shelf-stable, requiring no refrigeration. Retail distribution is sold through supermarkets, trade sales (e.g. restaurants, foodservice companies and institutional buyers), convenience stores, discounters, independent food retailers and vending machines. Cadbury Schweppes Americas Beverages juice drink competitors include The Coca-Cola Company, PepsiCo, Inc. Kraft Food, Inc., Ocean Spray Cranberries, Inc., Sunny Delight Beverage Company, Welch’s, Inc., and Nestle USA (Kerin, 2007).
Hawaiian Punch is distributed by two separate networks to serve supermarkets and other retail customers.
* Packaged in ready to serve containers.
* Shipped to distribution centers for delivery to retail outlets. * Independent food brokers and sales representatives are responsible for sales to retail consumers. * Retail buyer is involved in merchandising the juice drink aisle at location; they do not service the soft drink aisle. * Packaging includes 1-gallon bottle, half-gallon bottle and 6.75-ounce single-serve standup pouch. * Focused on “mom” being the primary purchaser for the family.
Direct-store delivery (DSD)
* Concentrate is sold to licensed bottlers, who combine with sweeteners and water, package the product, and sell to retailers. * Bottlers deliver and shelve drinks in the soft drink aisle or location in supermarket or retail outlet; they do not service the juice drink aisle. * Bottlers stock vending machines and deliver syrup to fountain customers, such as restaurants. * Packaging includes 2-liter bottle, 20-ounce bottle, and 12-ounce can. * Focused on urban teens and offers a variety of flavors (Kerin, 2007).
Juice and soft drink supermarket aisles attract buyers from households with children...