Could
a lawsuit challenging Snapple's claims of being "made from the best stuff on
Earth" pose trouble for Cadbury Schweppes plc's plans to sell its North
America Beverages unit? Considering the reported interest in the company, the
little-known case that started in a Freehold, N.J., court house is unlikely to
hamstring the sale. However, it does challenge some of the common wisdom of
why Snapple is appealing to Coca-Cola Co. and other rumored bidders. According
to a story in the Newark Star-Ledger, the case is centered around Snapple's
use of high fructose corn syrup, which does not occur naturally, but instead
is created from corn starch in a multistep process. While one nutritionist
told the paper high fructose corn syrup could be deemed as natural because it
is not synthesized from chemicals, others quoted by the paper agreed with the
plaintiff. If in fact a court rules against Cadbury Schweppes, then Snapple
may not seem quite as attractive and could receive lower bids. However,
Snapple is as much about being "natural" as it is about being an alternative
to carbonated beverages, so most bidders are unlikely to lose interest despite
the legal troubles. —Matthew Wurtzel
See
story from The Newark Star-Ledger
See
story announcing auction from TheDeal.com
See
Cadbury Schweppes Dealwatch
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