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Snapple
Harvard Business School Case #599-126
Case Software #XLS-259
Copyright 2011 President and Fellows of Harvard College. No part of this product may be reproduced, stored in a retrieval system or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording or otherwisewithout the permission of Harvard Business School. Exhibit 4 Snapple Flavors
Retailer's price to consumer $19 in supermarket, $24 on street
Distributor's selling price to retailer $15 to supermarket, $19 to street Manufacturer's selling price to distributor $10 Cost of goods (contract manufacturing) $6 Advertising and promotion $2
Profit before general and administrative costs $2
Source: Triarc Company estimates.
By "street" is meant street vendors, delicatessens, restaurants, recreation areas, etc.
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