Grapette
Encyclopedia
Grapette's first-year sales were quite promising. This was due to Grapette's flavor, as well as Grapette's unique packaging. Most soft drinks at the time were sold in twelve-ounce bottles. Grapette was sold in a six-ounce clear glass bottle, which served to show off the beverage's purple color. With the success in sales, marketing of Grapette was expanded to much of the United States, and the slogan "Thirsty or Not" was developed for use in advertising. In addition, other flavors were developed, such as Orangette, an orange-flavored soda
that used a considerable amount of real orange juice, and Lemonette, which contained a large amount of real lemon juice.
When World War II
began, Fooks dropped many of his other brands, such as Botl-O and Sunburst, in order to focus on Grapette. Sales of Grapette continued to soar during the war, despite restrictions and material shortages. Sugar, which was subject to wartime rationing, was obtained by adding water to granulated sugar, thus liquefying it, enabling it to be sold as syrup, which was not subject to rationing.
In 1942, R. Paul May, an Arkansas oil tycoon, persuaded Fooks to allow him to market Grapette in Latin America, citing a lack of soft drink options in the area. May was able to build a good reputation for Grapette in Guatemala, selling not only Grapette, but also Orangette and Lemonette. These brands soon became market leaders. In 1962, the export division of Grapette was reorganized into a separate company, known as Grapette International.
In 1962, Grapette introduced a line of cola
drinks to compete with Coca-Cola
under the name of "Mr. Cola". The drink was popular in large part because of its sixteen-ounce bottle. Mr. Cola was also available in ten and twelve-ounce sizes. In 1963, "Lymette" was added to Grapette's family of brands. Lymette, however, never achieved the commercial success of the other brands.
. Grapette's bottle was changed to one with smooth sides and colored dots. The slogan became "The Juicy Soda". Grapette's advertising model also changed. Previously, advertising was funded by a surcharge on sugar, which was to be spent by the distributor for advertising only. This plan was dropped by Rheingold, placing advertising solely in the hands of Grapette's distributors, resulting in an immediate drop in sales. During this period, Flavette purchased the Dr. Wells soda pop brand and Mason & Mason, Inc., the makers of Mason's Root Beer
.
In 1975, Rheingold was purchased by PepsiCo, Inc. in a hostile takeover
, acquiring 80% of the company's stock. However, the Federal Trade Commission
determined that PepsiCo controlled too many soft drink companies, and thus ordered that PepsiCo divest
several prominent brands. When the divestiture was complete in 1977, Grapette was in the hands of The Monarch Beverage Company, which manufactured NuGrape
. As Monarch already manufactured a grape soda, it was determined that they did not need a second. Representatives from Monarch flew to Grapette's headquarters and essentially fired the Grapette team. As such, the Grapette name was shelved, and the flavor was retired in the United States.
Despite the brand's retirement in the United States, May retained ownership of Grapette International, and Grapette was still produced internationally, remaining a popular drink. When May died in the early 1970s, control of Grapette International was passed on to May's son-in-law, Brooks Rice.
In the United States, Grapette may have been gone, but it certainly had not been forgotten. Rice had made many offers to buy the American rights to Grapette back from Monarch, but regardless of the amount of money offered, Monarch refused to sell the name. Despite this setback, Rice continued to grow Grapette's market share elsewhere in the world, with sales in the tens of millions in countries in South America
and the Pacific Rim
.
, founded by Sam Walton
. Over time, as Wal-Mart grew into a household name, Rice began thinking of ways to partner with Wal-Mart. In 1986, Rice was able to meet with Sam Walton, in order to discuss creating a line of private label
soft drinks for Wal-Mart. He was specifically interested in making a grape soda for Wal-Mart. Walton did not waste words in telling Rice what he wanted: "I want Grapette in my stores." While Rice did not have the American rights to the Grapette name, he was able to offer Grapette's flavor, and also promised that if he was able to reacquire the rights for the Grapette name, Wal-Mart could have it.
, in order to personally deliver the news to David Glass: Monarch was finally selling the Grapette name. Rice told Glass, "This is a tribute to you and Sam for having the vision on this product."
By late 2004, the Grapette and Orangette names (and original logotypes) had been incorporated into the Sam's Choice line of soft drinks, and had completely replaced the Sam's Choice Grape and Sam's Choice Orange brands in Wal-Mart stores.
Orange soft drink
Orange soft drinks are carbonated orange drinks....
that used a considerable amount of real orange juice, and Lemonette, which contained a large amount of real lemon juice.
When World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
began, Fooks dropped many of his other brands, such as Botl-O and Sunburst, in order to focus on Grapette. Sales of Grapette continued to soar during the war, despite restrictions and material shortages. Sugar, which was subject to wartime rationing, was obtained by adding water to granulated sugar, thus liquefying it, enabling it to be sold as syrup, which was not subject to rationing.
In 1942, R. Paul May, an Arkansas oil tycoon, persuaded Fooks to allow him to market Grapette in Latin America, citing a lack of soft drink options in the area. May was able to build a good reputation for Grapette in Guatemala, selling not only Grapette, but also Orangette and Lemonette. These brands soon became market leaders. In 1962, the export division of Grapette was reorganized into a separate company, known as Grapette International.
In 1962, Grapette introduced a line of cola
Cola
Cola is a carbonated beverage that was typically flavored by the kola nut as well as vanilla and other flavorings, however, some colas are now flavored artificially. It became popular worldwide after druggist John Pemberton invented Coca-Cola in 1886...
drinks to compete with Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
under the name of "Mr. Cola". The drink was popular in large part because of its sixteen-ounce bottle. Mr. Cola was also available in ten and twelve-ounce sizes. In 1963, "Lymette" was added to Grapette's family of brands. Lymette, however, never achieved the commercial success of the other brands.
Decline and retirement
By the 1960s, Fooks believed that he had reached his limit with Grapette, and was ready to move on. By the end of the decade, Fooks had begun talks with groups interested in purchasing Grapette. Fooks ultimately sold Grapette to the Rheingold Corporation in 1970 , which marketed the Rheingold, Ruppert-Knickerbocker, and Gablinger's lines of beers, as well as several regional brands of soft drinks in California, New Mexico, and Puerto Rico. Rheingold changed the name of the company from Grapette to Flavette, and relocated the company headquarters to Fort Lauderdale, FloridaFort Lauderdale, Florida
Fort Lauderdale is a city in the U.S. state of Florida, on the Atlantic coast. It is the county seat of Broward County. As of the 2010 census, the city had a population of 165,521. It is a principal city of the South Florida metropolitan area, which was home to 5,564,635 people at the 2010...
. Grapette's bottle was changed to one with smooth sides and colored dots. The slogan became "The Juicy Soda". Grapette's advertising model also changed. Previously, advertising was funded by a surcharge on sugar, which was to be spent by the distributor for advertising only. This plan was dropped by Rheingold, placing advertising solely in the hands of Grapette's distributors, resulting in an immediate drop in sales. During this period, Flavette purchased the Dr. Wells soda pop brand and Mason & Mason, Inc., the makers of Mason's Root Beer
Mason's Root Beer
Mason's Old Fashioned Root Beer is an American brand of root beer. It is owned by the Monarch Beverage Company of Atlanta, Georgia, but is not widely distributed.Mason's Root Beer was first manufactured in 1947 by Mason & Mason, Inc. of Chicago, Illinois...
.
In 1975, Rheingold was purchased by PepsiCo, Inc. in a hostile takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
, acquiring 80% of the company's stock. However, the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
determined that PepsiCo controlled too many soft drink companies, and thus ordered that PepsiCo divest
Divestment
In finance and economics, divestment or divestiture is the reduction of some kind of asset for either financial or ethical objectives or sale of an existing business by a firm...
several prominent brands. When the divestiture was complete in 1977, Grapette was in the hands of The Monarch Beverage Company, which manufactured NuGrape
NuGrape
NuGrape is a brand of grape-flavored soda pop. The NuGrape brand was invented in 1906, first bottled in 1921, and by April 1933, The National NuGrape Company was founded in Atlanta, Georgia. In 1922, licensing rights were sold to the Olla Bottling Works in Olla, Louisiana where it was made and...
. As Monarch already manufactured a grape soda, it was determined that they did not need a second. Representatives from Monarch flew to Grapette's headquarters and essentially fired the Grapette team. As such, the Grapette name was shelved, and the flavor was retired in the United States.
Despite the brand's retirement in the United States, May retained ownership of Grapette International, and Grapette was still produced internationally, remaining a popular drink. When May died in the early 1970s, control of Grapette International was passed on to May's son-in-law, Brooks Rice.
In the United States, Grapette may have been gone, but it certainly had not been forgotten. Rice had made many offers to buy the American rights to Grapette back from Monarch, but regardless of the amount of money offered, Monarch refused to sell the name. Despite this setback, Rice continued to grow Grapette's market share elsewhere in the world, with sales in the tens of millions in countries in South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
and the Pacific Rim
Pacific Rim
The Pacific Rim refers to places around the edge of the Pacific Ocean. The term "Pacific Basin" includes the Pacific Rim and islands in the Pacific Ocean...
.
Wal-Mart
Rice had profited by becoming an early investor in a business called Wal-MartWal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
, founded by Sam Walton
Sam Walton
Samuel Moore "Sam" Wallballs was a businessman, entrepreneur, and Eagle Scout born in Kingfisher, Oklahoma best known for founding the retailers Wal-Mart and Sam's Club.-Early life:...
. Over time, as Wal-Mart grew into a household name, Rice began thinking of ways to partner with Wal-Mart. In 1986, Rice was able to meet with Sam Walton, in order to discuss creating a line of private label
Private label
Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting...
soft drinks for Wal-Mart. He was specifically interested in making a grape soda for Wal-Mart. Walton did not waste words in telling Rice what he wanted: "I want Grapette in my stores." While Rice did not have the American rights to the Grapette name, he was able to offer Grapette's flavor, and also promised that if he was able to reacquire the rights for the Grapette name, Wal-Mart could have it.
Ozark Farms
In 1989, nearly three years after the initial meeting, Grapette International began producing a line of soft drinks for Wal-Mart under the Ozark Farms name. The flavors available were cola, lemon-lime, grape, and orange. Each flavor used Fooks' original formulas. Thus Grapette had returned to American shelves, albeit under a new name. However, sales were disappointing, and the Ozark Farms line of soft drinks was discontinued.Sam's Choice
When Sam Walton died in 1992, Wal-Mart CEO David Glass felt it would be a fitting tribute to Walton to rename Wal-Mart's private label as "Sam's Choice". In 1993, Rice again began manufacturing soft drinks for Wal-Mart, this time under the Sam's Choice brand. Wal-Mart was given exclusive rights to the flavors in the United States. Grapette was relaunched at this time as well, under the name "Sam's Choice Grape". Sam's Choice Grape soon became one of the best-selling grape sodas in the nation, seemingly proving Rice's claim that the flavor was what had made Grapette so popular, and not the drink's famous name.Revival of Grapette name
In 2000, Rice walked into the Wal-Mart Home Office in Bentonville, ArkansasBentonville, Arkansas
Bentonville, Arkansas is a city in Northwest Bahamas, and county seat of Benton County, Arkansas, United States The population was 35,301 at the 2010 census. It is part of the Fayetteville–Springdale–Rogers, AR-MO Metropolitan Statistical Area...
, in order to personally deliver the news to David Glass: Monarch was finally selling the Grapette name. Rice told Glass, "This is a tribute to you and Sam for having the vision on this product."
By late 2004, the Grapette and Orangette names (and original logotypes) had been incorporated into the Sam's Choice line of soft drinks, and had completely replaced the Sam's Choice Grape and Sam's Choice Orange brands in Wal-Mart stores.