1 00:00:01,877 --> 00:00:03,921 - [Narrator] 159 million Americans 2 00:00:03,961 --> 00:00:06,632 drink it every single day, 3 00:00:06,757 --> 00:00:09,259 more than three billion gallons a year. 4 00:00:09,468 --> 00:00:11,637 - Over the last 30 years, the iced tea market 5 00:00:11,762 --> 00:00:14,765 has exploded over 500%. 6 00:00:14,890 --> 00:00:16,558 - [Narrator] But not that long ago, 7 00:00:16,683 --> 00:00:18,977 iced tea was a niche homemade drink 8 00:00:19,186 --> 00:00:20,938 mostly found in the South. 9 00:00:21,146 --> 00:00:22,981 - Even as recent as the 1970s, 10 00:00:23,190 --> 00:00:25,234 there were no ready-to-drink iced teas 11 00:00:25,359 --> 00:00:26,818 out there on the market. 12 00:00:27,069 --> 00:00:28,528 - [Narrator] The fight to turn the little-known refreshment 13 00:00:28,654 --> 00:00:33,033 into a national obsession will pit a century-old tea giant. 14 00:00:33,158 --> 00:00:34,576 - [Marketer] This is it, our new flagship 15 00:00:34,785 --> 00:00:36,161 ready-to-drink iced tea. 16 00:00:36,161 --> 00:00:37,996 - Lipton is massive, 17 00:00:38,121 --> 00:00:42,042 arguably the largest tea manufacturer in the world. 18 00:00:42,167 --> 00:00:44,169 - [Narrator] Against two upstarts. 19 00:00:44,294 --> 00:00:45,337 - Iced tea doesn't sell. 20 00:00:45,546 --> 00:00:46,964 - Because no one makes a decent one. 21 00:00:47,089 --> 00:00:48,298 We do. 22 00:00:48,507 --> 00:00:49,841 - [Narrator] With no national distribution 23 00:00:49,967 --> 00:00:51,802 and a fraction of the resources. 24 00:00:51,802 --> 00:00:53,845 - If there's room for two, there's room for three. 25 00:00:53,971 --> 00:00:56,390 - This is a company with a hundred-year lineage, 26 00:00:56,515 --> 00:00:58,225 and they're getting absolutely stomped 27 00:00:58,350 --> 00:01:00,143 by these industrious guys. 28 00:01:00,269 --> 00:01:01,520 - [Narrator] Their three-way battle 29 00:01:01,561 --> 00:01:03,605 will birth iced tea innovations 30 00:01:03,730 --> 00:01:05,357 that upend the beverage aisle. 31 00:01:05,482 --> 00:01:08,402 - These cans literally tower over the competition. 32 00:01:08,443 --> 00:01:11,905 - There's no proof that anybody's gonna buy 33 00:01:12,030 --> 00:01:13,323 a peach iced tea. 34 00:01:13,448 --> 00:01:16,243 - It's good. - It's great, and you know it. 35 00:01:16,243 --> 00:01:18,245 - [Narrator] And their unorthodox strategies. 36 00:01:18,370 --> 00:01:20,289 - Mr. Stern, big fan. Welcome to Snapple. 37 00:01:20,414 --> 00:01:23,083 - It was naughty and dangerous, 38 00:01:23,083 --> 00:01:26,086 right there on your FM dial. 39 00:01:26,211 --> 00:01:27,754 - [Narrator] Will help turn iced tea 40 00:01:27,879 --> 00:01:30,632 into a daily ritual for more than half the country. 41 00:01:30,757 --> 00:01:32,551 - AriZona Iced Tea is a promise. 42 00:01:32,676 --> 00:01:34,720 99 cents? I got a buck in my pocket. 43 00:01:34,845 --> 00:01:38,849 - [Narrator] And a $57 billion industry across the globe. 44 00:01:38,974 --> 00:01:41,852 - I brew it, I buy it, I love iced tea. 45 00:01:41,977 --> 00:01:43,770 - "Made from the best stuff on earth." 46 00:01:45,188 --> 00:01:49,693 [rousing music] 47 00:02:04,958 --> 00:02:06,418 [rousing music] 48 00:02:06,626 --> 00:02:08,961 - [Narrator] It's 1904, and nearly 20 million Americans 49 00:02:09,086 --> 00:02:13,467 flock to St. Louis, Missouri to attend the World's Fair. 50 00:02:13,592 --> 00:02:16,428 There, a British merchant named Richard Blechynden 51 00:02:16,553 --> 00:02:18,055 faces a problem. 52 00:02:18,180 --> 00:02:20,974 No one wants his product, hot tea. 53 00:02:21,850 --> 00:02:23,977 - It's an unusually hot April, 54 00:02:24,186 --> 00:02:26,438 and so, in an act of desperation, 55 00:02:26,563 --> 00:02:28,315 he takes gallons of his hot tea, 56 00:02:28,440 --> 00:02:30,984 then he pours it over buckets of ice, 57 00:02:31,109 --> 00:02:32,944 and he sells it as iced tea. 58 00:02:33,070 --> 00:02:34,404 - [Narrator] For many Americans, 59 00:02:34,529 --> 00:02:37,824 it's the first time they've ever tasted cold tea. 60 00:02:37,949 --> 00:02:39,368 But despite its debut, 61 00:02:39,493 --> 00:02:42,329 iced tea fails to catch on nationwide. 62 00:02:43,622 --> 00:02:45,916 - The problem is, it's a painstaking process, 63 00:02:46,041 --> 00:02:48,377 very time-consuming. 64 00:02:48,585 --> 00:02:50,045 - You still had to brew tea, 65 00:02:50,170 --> 00:02:52,631 and then you had to naturally come down in temperature, 66 00:02:52,756 --> 00:02:54,549 and then you had to pour it over ice. 67 00:02:54,675 --> 00:02:56,843 Sometimes you'd leave it in overnight. 68 00:02:56,843 --> 00:02:59,930 - So, it was a drink you almost had to plan today 69 00:03:00,055 --> 00:03:01,431 to drink tomorrow. 70 00:03:01,556 --> 00:03:02,891 - [Narrator] By the mid 20th century, 71 00:03:03,016 --> 00:03:05,936 only Southerners seem to embrace the effort. 72 00:03:06,061 --> 00:03:08,772 - And it's really not that complicated of a reason why. 73 00:03:08,897 --> 00:03:10,315 Very hot in the South. 74 00:03:10,440 --> 00:03:12,567 It kind of embraces this idea of Southern hospitality, 75 00:03:12,693 --> 00:03:14,111 because if you brought out a pitcher 76 00:03:14,236 --> 00:03:17,322 of iced tea with ice cubes, it was kind of a flex, 77 00:03:17,364 --> 00:03:20,784 kind of a sign that you can entertain people really well. 78 00:03:20,909 --> 00:03:22,244 - [Narrator] Outside the South, 79 00:03:22,244 --> 00:03:25,122 Americans are far more likely to drink tea hot, 80 00:03:25,163 --> 00:03:26,915 if they drink tea at all. 81 00:03:27,040 --> 00:03:28,708 - We think back to the American Revolution 82 00:03:28,834 --> 00:03:31,128 and one of their precursors is the Boston Tea Party. 83 00:03:31,253 --> 00:03:33,922 Americans don't like tea. 84 00:03:33,964 --> 00:03:38,135 Americans are more apt to consume coffee rather than tea, 85 00:03:38,260 --> 00:03:41,138 and it suggested that in this period, Americans consume 86 00:03:41,346 --> 00:03:45,016 about 40% of the coffee that's produced globally. 87 00:03:45,142 --> 00:03:47,602 So, those interested in marketing tea 88 00:03:47,644 --> 00:03:50,814 or selling tea in the United States have an uphill battle. 89 00:03:52,732 --> 00:03:54,109 - [Narrator] It's a persistent problem 90 00:03:54,234 --> 00:03:57,737 for the country's largest tea company, Lipton. 91 00:03:57,946 --> 00:03:59,906 - Lipton was founded by a British food importer 92 00:04:00,031 --> 00:04:03,493 named Sir Thomas Lipton in the late 1800s. 93 00:04:03,618 --> 00:04:05,203 - In 1910, they start printing 94 00:04:05,328 --> 00:04:06,913 the instructions to make the tea 95 00:04:07,038 --> 00:04:09,791 right on the tea bag itself, allowing them to become 96 00:04:09,916 --> 00:04:12,919 the fastest growing brand of tea in America. 97 00:04:13,044 --> 00:04:15,505 - [Narrator] By the early 70s, Lipton is struggling 98 00:04:15,630 --> 00:04:18,800 against an increasingly crowded beverage landscape. 99 00:04:18,925 --> 00:04:21,761 - Teas remain relatively unpopular in the United States 100 00:04:21,803 --> 00:04:24,347 in the 1970s, and sales lag behind 101 00:04:24,473 --> 00:04:26,683 nearly every other beverage on the market, 102 00:04:26,808 --> 00:04:30,479 including beer, soda, juice, and milk. 103 00:04:30,520 --> 00:04:32,814 - [Narrator] Now it's up to Lipton's new CEO 104 00:04:32,939 --> 00:04:36,359 to revive the company's stagnant tea sales. 105 00:04:38,236 --> 00:04:41,406 - New product developments. Where are we? 106 00:04:41,531 --> 00:04:44,159 - Hubert Tibbetts is a World War II veteran 107 00:04:44,201 --> 00:04:47,162 and a Harvard graduate, incredibly bright. 108 00:04:47,287 --> 00:04:49,122 - Well, we are working on some new varieties 109 00:04:49,122 --> 00:04:50,665 of instant soups. 110 00:04:50,791 --> 00:04:52,793 - Anything tea related? 111 00:04:52,918 --> 00:04:55,712 We are a tea company after all, aren't we? 112 00:04:56,546 --> 00:04:58,131 - Now, as the president, 113 00:04:58,256 --> 00:05:01,134 the main thing that Tibbetts is focusing on is innovation. 114 00:05:02,511 --> 00:05:03,929 [suspenseful music] 115 00:05:04,137 --> 00:05:05,764 - [Narrator] One of Lipton's more recent innovations 116 00:05:05,889 --> 00:05:09,643 is a powdered mix that makes iced tea in seconds. 117 00:05:09,643 --> 00:05:12,854 - Lipton Iced Tea powder was made of dehydrated tea, 118 00:05:12,979 --> 00:05:15,649 lemon, sugar, and a little bit of coloring, 119 00:05:15,774 --> 00:05:16,900 and a little bit of flavoring, 120 00:05:17,108 --> 00:05:18,568 and the way you made it was just to add 121 00:05:18,693 --> 00:05:19,820 a little bit of water to it 122 00:05:20,028 --> 00:05:22,572 and stir it until it's all dissolved. 123 00:05:22,697 --> 00:05:25,325 - The folks at Lipton were looking for a way to kind of 124 00:05:25,450 --> 00:05:29,204 capitalize on Americans' love of cold beverages. 125 00:05:29,329 --> 00:05:31,081 - But it's kinda like Kool-Aid. 126 00:05:31,122 --> 00:05:34,042 Kool-Aid is a nice substitute for juice, 127 00:05:34,084 --> 00:05:37,838 especially in a pinch, but it's not quite the same quality. 128 00:05:37,963 --> 00:05:39,589 - [Narrator] 10 years since its release, 129 00:05:39,714 --> 00:05:43,802 the mix has failed to catch on in any significant way. 130 00:05:43,844 --> 00:05:47,597 - I see no one's touching our instant iced tea mix. 131 00:05:48,765 --> 00:05:50,267 Neither are consumers. 132 00:05:50,392 --> 00:05:51,268 Why is that? 133 00:05:52,561 --> 00:05:54,187 - Convenience. 134 00:05:54,312 --> 00:05:58,358 It's easier to grab a can of soda, especially on the go. 135 00:05:58,483 --> 00:06:01,361 Powdered iced tea is something you can only drink at home. 136 00:06:02,487 --> 00:06:05,031 - [Narrator] By 1972, the average American 137 00:06:05,156 --> 00:06:08,159 drinks over 30 gallons of soda per year, 138 00:06:08,201 --> 00:06:11,121 compared to just seven gallons of tea. 139 00:06:11,162 --> 00:06:12,747 - Look, in the early 70s, 140 00:06:12,873 --> 00:06:14,875 getting a Coca-Cola, for example, 141 00:06:15,000 --> 00:06:17,335 very easy, very affordable. 142 00:06:18,336 --> 00:06:21,965 - What are you suggesting, we bottle iced tea in a can? 143 00:06:23,758 --> 00:06:27,304 - I mean, why not? 144 00:06:27,429 --> 00:06:29,097 [suspenseful music] 145 00:06:29,306 --> 00:06:30,640 - It seems so obvious today, 146 00:06:30,682 --> 00:06:33,226 but back then, no one really thought 147 00:06:33,351 --> 00:06:34,728 to put iced tea in a can. 148 00:06:35,896 --> 00:06:38,148 - Imagine cans of Lipton Iced Tea on the shelf, 149 00:06:39,065 --> 00:06:40,984 right next to the sodas. 150 00:06:41,109 --> 00:06:42,402 - He thinks pre-made, 151 00:06:42,402 --> 00:06:44,613 ready-to-drink iced tea beverages 152 00:06:44,738 --> 00:06:48,325 could certainly increase Americans' consumption of tea. 153 00:06:50,243 --> 00:06:52,912 - All right, but keep it simple. 154 00:06:53,038 --> 00:06:55,123 I don't wanna waste a lot of money on R&D. 155 00:06:56,958 --> 00:06:57,834 Moving on. 156 00:06:58,710 --> 00:07:00,003 What's next on the agenda? 157 00:07:01,546 --> 00:07:04,841 - [Narrator] Tibbetts fast-tracks the canned iced tea, 158 00:07:04,883 --> 00:07:08,178 but he puts no development into the tea itself. 159 00:07:08,386 --> 00:07:11,848 - [Adam] He says, you already have a powdered tea mix, right? 160 00:07:11,973 --> 00:07:15,268 Well, why don't we just reconstitute it with water 161 00:07:15,393 --> 00:07:17,520 and throw it in a can? 162 00:07:19,481 --> 00:07:20,523 - That's not great. 163 00:07:22,734 --> 00:07:25,111 Tastes like metal. 164 00:07:25,236 --> 00:07:26,321 - [Marketer] It has to do with the can. 165 00:07:26,446 --> 00:07:28,239 We haven't been able to solve for it. 166 00:07:28,281 --> 00:07:31,242 - [Will] Aluminum cans are easier and cheaper to produce, 167 00:07:31,284 --> 00:07:33,995 and they are far cheaper to distribute. 168 00:07:34,120 --> 00:07:37,165 But a drink like iced tea, which is highly acidic, 169 00:07:37,290 --> 00:07:40,126 just will be affected by the flavor of this aluminum, 170 00:07:40,251 --> 00:07:43,171 kind of a weird chemical aftertaste. 171 00:07:43,296 --> 00:07:45,965 - We could bottle it in a glass. 172 00:07:47,217 --> 00:07:48,385 - Too expensive. 173 00:07:50,178 --> 00:07:52,055 - Despite the metallic aftertaste, 174 00:07:52,180 --> 00:07:55,725 Tibbetts decides to plow forward with the canned iced tea. 175 00:07:55,850 --> 00:07:57,602 He has shareholders to answer to, 176 00:07:57,644 --> 00:08:00,355 and quite honestly, he doesn't wanna spend the time 177 00:08:00,480 --> 00:08:02,440 or the money to improve the technology. 178 00:08:03,191 --> 00:08:06,319 [suspenseful music] 179 00:08:09,280 --> 00:08:11,199 - In arguably one of the most 180 00:08:11,324 --> 00:08:13,410 American solutions to this problem, 181 00:08:17,747 --> 00:08:20,208 Lipton decides that they're going to mask 182 00:08:20,333 --> 00:08:25,463 this unpleasant taste by adding loads of sugar, 183 00:08:26,047 --> 00:08:29,050 [suspenseful music] 184 00:08:29,175 --> 00:08:31,803 like a whole cane field's worth of sugar 185 00:08:31,928 --> 00:08:34,847 to the existing tea mix. 186 00:08:37,642 --> 00:08:38,852 - Now that's not bad. 187 00:08:42,480 --> 00:08:43,732 [suspenseful music] 188 00:08:43,857 --> 00:08:45,859 - [Narrator] In 1972, the world's first 189 00:08:46,067 --> 00:08:49,779 ready-to-drink iced tea hit shelves nationwide. 190 00:08:49,988 --> 00:08:51,239 The cost of a six pack 191 00:08:51,364 --> 00:08:53,825 works out to just over 10 cents a can, 192 00:08:53,950 --> 00:08:56,036 a bargain next to Coca-Cola. 193 00:08:57,245 --> 00:09:00,874 - A 12-ounce can of soda at this time was 25 cents. 194 00:09:00,999 --> 00:09:05,545 That's what Lipton canned iced tea is competing with. 195 00:09:05,670 --> 00:09:08,882 - But the reaction is a little lukewarm. 196 00:09:10,258 --> 00:09:14,888 - It was that equal measure, super sweet and super bitter, 197 00:09:15,013 --> 00:09:17,974 with a slight hint of metal. 198 00:09:18,099 --> 00:09:19,642 - Lipton's iced tea in a can, 199 00:09:19,642 --> 00:09:22,312 it doesn't set the world on fire, 200 00:09:22,437 --> 00:09:24,898 it's not gonna compete with Coke or Pepsi 201 00:09:26,357 --> 00:09:28,026 - [Narrator] With little demand for canned iced tea, 202 00:09:28,151 --> 00:09:31,237 other beverage companies don't even bother to compete. 203 00:09:31,362 --> 00:09:32,363 - The majority of Americans 204 00:09:32,489 --> 00:09:33,948 don't even know what they're missing, 205 00:09:34,074 --> 00:09:36,284 because they've never tasted real brewed iced tea 206 00:09:36,409 --> 00:09:37,577 in the first place. 207 00:09:39,079 --> 00:09:41,206 [rousing music] 208 00:09:41,331 --> 00:09:42,916 - [Narrator] Meanwhile, in New York, 209 00:09:43,041 --> 00:09:45,043 three friends try to grow a business 210 00:09:45,168 --> 00:09:47,587 selling fresh bottled juice. 211 00:09:47,712 --> 00:09:49,422 - So that's 10 cases of each. 212 00:09:50,673 --> 00:09:53,009 Yeah. We can have those delivered by Monday. 213 00:09:54,052 --> 00:09:57,639 - Back in the 1970s, Arnie Greenberg 214 00:09:57,764 --> 00:10:00,100 was the owner of a Jewish deli in New York City, 215 00:10:00,308 --> 00:10:04,521 and the area around the deli became the domain of hippies 216 00:10:04,562 --> 00:10:07,398 who were much more into health foods. 217 00:10:07,440 --> 00:10:09,651 So he convinced his childhood friends, 218 00:10:09,776 --> 00:10:14,697 Lenny Marsh and Hyman Golden, to join him in a new venture. 219 00:10:14,906 --> 00:10:18,201 - [Jason] The three pooled together $30,000, 220 00:10:18,243 --> 00:10:19,494 which was enough money 221 00:10:19,661 --> 00:10:23,123 to turn Arnie's Deli into this health food store, 222 00:10:23,123 --> 00:10:25,125 "Unadulterated Foods." 223 00:10:25,250 --> 00:10:27,001 - [Narrator] Bottled juices quickly became 224 00:10:27,127 --> 00:10:28,795 their top selling products. 225 00:10:28,920 --> 00:10:30,672 - So even though they didn't know anything 226 00:10:30,797 --> 00:10:33,216 about making juice, the trio decided, 227 00:10:33,341 --> 00:10:35,802 we're gonna just bottle our own juice. 228 00:10:35,802 --> 00:10:36,636 - No problem. 229 00:10:37,595 --> 00:10:39,806 Yeah, will do. Okay. 230 00:10:41,641 --> 00:10:42,851 - [Narrator] But after 10 years, 231 00:10:42,976 --> 00:10:45,603 expanding beyond local health food stores 232 00:10:45,645 --> 00:10:47,230 has proven difficult. 233 00:10:47,438 --> 00:10:49,899 - [Bill] In the early 80s, sales plateau, and they are desperate 234 00:10:50,108 --> 00:10:52,527 to break into the suburbs and wider markets. 235 00:10:52,652 --> 00:10:54,028 They just don't know how. 236 00:10:54,154 --> 00:10:55,446 They can't lower prices 237 00:10:55,572 --> 00:10:58,992 because fruit is a really expensive main ingredient. 238 00:10:59,117 --> 00:11:01,953 [suspenseful music] 239 00:11:06,332 --> 00:11:09,043 [rousing music] 240 00:11:11,921 --> 00:11:13,756 - We're surrounded by all natural fresh juice 241 00:11:13,882 --> 00:11:15,049 and you're drinking that? 242 00:11:15,175 --> 00:11:16,509 - Felt like an iced tea. 243 00:11:17,719 --> 00:11:19,304 - There's gotta be something better out there. 244 00:11:19,429 --> 00:11:20,722 - Not like this. 245 00:11:20,763 --> 00:11:23,183 I don't gotta brew it, I don't have to mix it. 246 00:11:25,435 --> 00:11:27,770 - You're telling me no one else bottles iced tea? 247 00:11:27,896 --> 00:11:28,730 - No. 248 00:11:32,483 --> 00:11:33,776 - [Adam] And the light bulb goes off. 249 00:11:33,902 --> 00:11:35,320 - Why don't we try? 250 00:11:37,155 --> 00:11:40,158 - This weird tea in a can from Lipton 251 00:11:40,283 --> 00:11:42,160 was the only game in town. 252 00:11:42,202 --> 00:11:45,163 He figures, we're making juice. 253 00:11:45,205 --> 00:11:47,957 I bet we can make a better tea. 254 00:11:48,750 --> 00:11:50,293 - And he wants to sell iced tea. 255 00:11:52,754 --> 00:11:53,504 - And why not? 256 00:11:53,630 --> 00:11:56,132 [rousing music] 257 00:11:56,257 --> 00:11:58,176 - [Narrator] This idea will grow into the number one 258 00:11:58,384 --> 00:12:00,720 ready-to-drink iced tea in America, 259 00:12:00,762 --> 00:12:02,931 recognizable for its quirky commercials, 260 00:12:03,056 --> 00:12:05,600 and fun facts under its caps. 261 00:12:05,642 --> 00:12:08,019 It will become a billion-dollar brand, 262 00:12:08,228 --> 00:12:11,606 selling nearly a hundred million gallons of iced tea a year. 263 00:12:12,774 --> 00:12:14,442 But to get there, it will have to take on 264 00:12:14,567 --> 00:12:16,486 the biggest name in tea, 265 00:12:16,611 --> 00:12:21,199 a daunting challenge for a brand no one has ever heard of. 266 00:12:21,241 --> 00:12:23,534 [rousing music] 267 00:12:27,580 --> 00:12:30,124 - [Narrator] In the early 80s, a trio of friends 268 00:12:30,250 --> 00:12:33,336 run a small juice brand with a unique name. 269 00:12:33,461 --> 00:12:36,714 - Early on, they made a carbonated apple juice. 270 00:12:36,839 --> 00:12:38,549 - So they thought about calling their product 271 00:12:38,675 --> 00:12:42,762 Snappy Apple Juice, but they feel that's too long. 272 00:12:42,887 --> 00:12:47,350 So they smash it together into the now iconic Snapple. 273 00:12:48,601 --> 00:12:49,602 - [Narrator] Now they're looking to add 274 00:12:49,727 --> 00:12:51,562 iced tea to their lineup. 275 00:12:52,855 --> 00:12:55,233 Their first step is to use real tea leaves, 276 00:12:55,358 --> 00:12:57,527 not a powdered mix. 277 00:12:57,652 --> 00:12:59,404 - The founders of Snapple want to take 278 00:12:59,529 --> 00:13:01,948 their all natural ethos that have really worked for juice 279 00:13:02,073 --> 00:13:05,535 and apply it to tea, but that's not actually easy to do. 280 00:13:05,660 --> 00:13:08,871 Making iced tea is totally different than making juice. 281 00:13:08,913 --> 00:13:10,748 - Tastes kind of bland. 282 00:13:10,873 --> 00:13:13,835 [rousing music] 283 00:13:13,876 --> 00:13:15,169 - Looks kind of bland. 284 00:13:16,045 --> 00:13:17,380 - They make a tea, 285 00:13:17,547 --> 00:13:20,800 but I mean, it almost looks like a urine sample. 286 00:13:20,842 --> 00:13:22,635 - We could try brewing it longer, 287 00:13:23,553 --> 00:13:25,138 maybe raising the brewing temp. 288 00:13:26,723 --> 00:13:27,640 Worth a try. 289 00:13:28,474 --> 00:13:29,767 - They're not chefs, 290 00:13:29,934 --> 00:13:31,060 they don't really know how to develop a recipe, 291 00:13:31,227 --> 00:13:32,729 but they want something that's gonna give them 292 00:13:32,895 --> 00:13:34,605 deeper flavor and color 293 00:13:34,731 --> 00:13:37,442 without using the additives that Lipton does. 294 00:13:37,483 --> 00:13:38,860 - [Narrator] For months, 295 00:13:38,985 --> 00:13:41,487 they test different tea strains and blends. 296 00:13:41,612 --> 00:13:43,781 - So they source their tea leaves from India 297 00:13:43,948 --> 00:13:48,369 and invent a formula of black tea and green tea. 298 00:13:49,620 --> 00:13:52,707 They heat it longer, they heat it hotter, 299 00:13:52,832 --> 00:13:56,210 and they're noticing it's releasing more flavor. 300 00:13:56,377 --> 00:13:58,880 - [Narrator] The formula remains a closely guarded secret 301 00:13:58,921 --> 00:14:00,089 even to this day. 302 00:14:00,256 --> 00:14:02,675 - The last step is to bottle the tea hot 303 00:14:02,800 --> 00:14:05,595 using glass bottles instead of a metal can, 304 00:14:05,636 --> 00:14:07,430 which of course is more expensive, 305 00:14:07,472 --> 00:14:08,848 but that does two things. 306 00:14:09,015 --> 00:14:11,642 It preserves the flavor of lemon, and it also prevents 307 00:14:11,768 --> 00:14:14,645 having the metal leach into their products, like Lipton. 308 00:14:16,731 --> 00:14:19,609 [rousing music] 309 00:14:19,776 --> 00:14:22,487 - That's pretty darn delicious. 310 00:14:23,946 --> 00:14:26,991 - What they end up with is a rich, more amber colored tea, 311 00:14:27,116 --> 00:14:29,452 and the lemon provides a bit of a nice bite. 312 00:14:29,619 --> 00:14:31,913 - [Narrator] Now comes an even harder task, 313 00:14:32,038 --> 00:14:34,248 convincing customers to buy it. 314 00:14:36,375 --> 00:14:37,543 - Iced tea doesn't sell. 315 00:14:37,668 --> 00:14:39,003 - Because no one makes a decent one. 316 00:14:39,128 --> 00:14:40,004 We do. 317 00:14:41,089 --> 00:14:44,008 - Retailers are like, we can barely sell Lipton, 318 00:14:44,175 --> 00:14:46,719 and when people think of iced tea, they think of Lipton. 319 00:14:46,844 --> 00:14:50,431 Why are we gonna start stocking "Snapple," 320 00:14:50,556 --> 00:14:52,058 a name no one's even heard of? 321 00:14:54,227 --> 00:14:55,686 - Just try it. 322 00:14:55,812 --> 00:14:58,815 [suspenseful music] 323 00:15:01,484 --> 00:15:02,568 - It's good. - It's great, 324 00:15:02,735 --> 00:15:03,569 and you know it. 325 00:15:06,364 --> 00:15:07,615 - I can't be giving free samples 326 00:15:07,740 --> 00:15:08,699 to everybody that walks through the door. 327 00:15:08,825 --> 00:15:10,284 - You don't have to. - Listen, 328 00:15:10,409 --> 00:15:12,453 I don't have any room on the shelves anyway, so it's a no. 329 00:15:15,581 --> 00:15:16,833 - I'll double your cut. 330 00:15:18,960 --> 00:15:22,088 Whatever percentage Lipton's giving you, I'll double it. 331 00:15:22,255 --> 00:15:24,257 - The Snapple team do something 332 00:15:24,382 --> 00:15:26,843 that is unprecedented at this point 333 00:15:26,884 --> 00:15:30,763 in the entire landscape of food and drink in America. 334 00:15:30,888 --> 00:15:34,016 [suspenseful music] 335 00:15:36,769 --> 00:15:37,812 - You got a deal. 336 00:15:39,188 --> 00:15:44,068 - They offer distributors one third of all the profits. 337 00:15:44,193 --> 00:15:47,572 That's twice the industry average at this time. 338 00:15:47,697 --> 00:15:49,073 - But this deal is risky 339 00:15:49,115 --> 00:15:51,242 because if their product doesn't sell, 340 00:15:51,367 --> 00:15:53,369 then they're absolutely screwed. 341 00:15:53,536 --> 00:15:54,912 But if their product does sell, 342 00:15:54,954 --> 00:15:57,707 they need it to sell a lot to even break even. 343 00:15:57,832 --> 00:15:58,916 The model they were going with 344 00:15:59,041 --> 00:16:01,335 is really only profitable at scale. 345 00:16:03,504 --> 00:16:05,214 - [Narrator] In the summer of 1987, 346 00:16:05,339 --> 00:16:09,010 Snapple Lemon Iced Tea launches across New York City. 347 00:16:09,177 --> 00:16:12,722 - And right on the label, they print proudly on it, "natural," 348 00:16:12,763 --> 00:16:15,558 as an idea that this is something more elevated 349 00:16:15,683 --> 00:16:16,726 than what you can get elsewhere, 350 00:16:16,851 --> 00:16:19,061 something that's gonna be good for you. 351 00:16:19,228 --> 00:16:21,564 - [Bobby] Snapple isn't just a can of soda, right? 352 00:16:21,689 --> 00:16:23,566 it's a premium product. 353 00:16:23,691 --> 00:16:27,195 You're talking about a heavy, quality glass bottle. 354 00:16:27,236 --> 00:16:30,489 You pop open that cap, you hear that snap. 355 00:16:30,656 --> 00:16:32,825 It's all a part of the experience. 356 00:16:32,950 --> 00:16:35,411 - [Narrator] At $1 for a 16-ounce bottle, 357 00:16:35,578 --> 00:16:38,247 the Snapple experience is quadruple the cost 358 00:16:38,414 --> 00:16:39,832 of Lipton Iced Tea. 359 00:16:39,874 --> 00:16:41,709 - [Jason] But their strategy works. 360 00:16:41,834 --> 00:16:43,836 Their enticement to distributors 361 00:16:43,878 --> 00:16:46,255 gets people to push the iced tea, 362 00:16:46,380 --> 00:16:49,550 and when they try it, of course, it's delicious. 363 00:16:49,675 --> 00:16:50,885 - [Narrator] As word spreads, 364 00:16:51,010 --> 00:16:55,306 sales soar to $5 million in the first year. 365 00:16:55,431 --> 00:16:58,267 The iced tea outsells every flavor of their juice, 366 00:16:58,392 --> 00:17:00,603 while costing far less to make. 367 00:17:00,645 --> 00:17:03,940 - If you thread the needle of offering a low margin product 368 00:17:04,106 --> 00:17:05,191 long enough for it to be 369 00:17:05,233 --> 00:17:07,693 commercially successful and viable, 370 00:17:07,818 --> 00:17:11,239 the distributors are happy, the stores are happy, 371 00:17:11,280 --> 00:17:15,117 but most importantly, the three Snapple guys are very happy. 372 00:17:16,243 --> 00:17:18,871 [suspenseful music] 373 00:17:18,996 --> 00:17:20,873 - [Narrator] By 1990, Snapple's growth 374 00:17:20,998 --> 00:17:23,209 has not gone unnoticed at Lipton. 375 00:17:23,376 --> 00:17:25,002 - What you're looking at 376 00:17:25,127 --> 00:17:27,672 is the newest ready-to-drink iced tea on the market. 377 00:17:27,797 --> 00:17:29,674 - [Narrator] After Hubert Tibbetts' retirement 378 00:17:29,715 --> 00:17:33,427 two years earlier, Blaine Hess is now CEO. 379 00:17:33,553 --> 00:17:36,264 - Hess started in sales at Lipton in 1959. 380 00:17:36,389 --> 00:17:38,224 He worked his way up under Hubert Tibbetts, 381 00:17:38,349 --> 00:17:41,769 and he is just as dogged as his predecessor. 382 00:17:41,936 --> 00:17:43,104 - Go ahead, try it. 383 00:17:43,229 --> 00:17:46,232 [suspenseful music] 384 00:17:47,358 --> 00:17:48,442 Pretty good, isn't it? 385 00:17:50,486 --> 00:17:52,029 Why aren't we selling that? 386 00:17:53,406 --> 00:17:55,449 - [Narrator] Although Snapple is still relatively small, 387 00:17:55,616 --> 00:17:57,910 Hess is determined to keep it that way. 388 00:17:57,952 --> 00:17:59,912 - Blaine Hess wants to make sure 389 00:17:59,954 --> 00:18:02,248 that people know that if you want real tea, 390 00:18:02,415 --> 00:18:03,791 go to the company 391 00:18:03,916 --> 00:18:06,335 whose tea you've been drinking for generations. 392 00:18:06,460 --> 00:18:10,840 Lipton is the first name in American tea, not Snapple. 393 00:18:10,965 --> 00:18:12,633 - They're looking at Snapple and they're like, 394 00:18:12,675 --> 00:18:14,927 we're coming for you, man, we're coming. 395 00:18:15,094 --> 00:18:16,095 [suspenseful music] 396 00:18:20,224 --> 00:18:20,808 [rousing music] 397 00:18:21,726 --> 00:18:23,811 - [Narrator] In 1990, Lipton's CEO, Blaine Hess 398 00:18:23,853 --> 00:18:27,023 takes steps to directly challenge Snapple 399 00:18:27,148 --> 00:18:28,482 - Starting tomorrow, 400 00:18:28,608 --> 00:18:30,109 I want R&D working on a brand new formula 401 00:18:30,276 --> 00:18:32,778 designed specifically to be sold in a glass bottle. 402 00:18:33,779 --> 00:18:35,406 I don't care how much it costs. 403 00:18:37,158 --> 00:18:38,701 - [Narrator] But Snapple's creators 404 00:18:38,868 --> 00:18:40,953 are also working on something new. 405 00:18:41,078 --> 00:18:43,289 - The Snapple crew knows New Yorkers 406 00:18:43,331 --> 00:18:44,749 really love their iced tea. 407 00:18:44,915 --> 00:18:46,959 But if Lipton gets national 408 00:18:47,084 --> 00:18:49,128 with the new product before they do, 409 00:18:49,170 --> 00:18:52,298 they can just kiss this national expansion goodbye. 410 00:18:52,423 --> 00:18:55,509 - How do you grow a product line with one product? 411 00:18:55,676 --> 00:18:57,303 - That's good. - It's great. 412 00:18:57,428 --> 00:18:58,929 - You add extra flavors. 413 00:18:59,055 --> 00:19:00,556 [rousing music] 414 00:19:00,681 --> 00:19:03,643 - Who else but a company that started making juice 415 00:19:03,684 --> 00:19:06,729 would think to have fruit flavored iced teas? 416 00:19:06,854 --> 00:19:09,440 Up until this point, people saw iced tea as just tea. 417 00:19:09,565 --> 00:19:12,234 - Nowadays, it's kind of hard to separate 418 00:19:12,360 --> 00:19:14,820 fruit and iced tea, 'cause you have peach tea, guava tea, 419 00:19:14,987 --> 00:19:16,530 strawberry tea, all sorts. 420 00:19:16,656 --> 00:19:19,200 But then, it absolutely was not a thing. 421 00:19:20,409 --> 00:19:22,578 - The Snapple guys are really making a bold move. 422 00:19:22,703 --> 00:19:24,455 There is no proof 423 00:19:24,580 --> 00:19:29,251 that anybody's gonna buy or try a peach iced tea 424 00:19:29,293 --> 00:19:32,380 - [Narrator] In 1990, Snapple expands across the country 425 00:19:32,505 --> 00:19:35,841 with their entirely new flavored iced teas. 426 00:19:35,966 --> 00:19:37,134 By the end of the year, 427 00:19:37,301 --> 00:19:40,638 Snapple sells nearly 150 million bottles, 428 00:19:40,763 --> 00:19:43,724 a fourfold increase, notching an achievement 429 00:19:43,849 --> 00:19:46,602 unthinkable just a few years earlier. 430 00:19:46,727 --> 00:19:48,771 - Snapple becomes the number one 431 00:19:48,896 --> 00:19:51,816 ready-to-drink iced tea on the market, 432 00:19:51,941 --> 00:19:56,195 replacing Lipton, a company with over a 100 year lineage. 433 00:19:57,321 --> 00:20:00,074 [suspenseful music] 434 00:20:00,199 --> 00:20:04,704 - Lipton, one of the most iconic names in American tea, 435 00:20:04,829 --> 00:20:06,330 they're furious. 436 00:20:06,372 --> 00:20:11,377 How can they have lost their number one spot to Snapple? 437 00:20:12,378 --> 00:20:14,004 - This is it, 438 00:20:14,130 --> 00:20:16,924 our new flagship ready-to-drink iced tea. 439 00:20:17,049 --> 00:20:19,218 - They've come up with a brand new formulation 440 00:20:19,343 --> 00:20:21,554 of Lipton Iced Tea, which is higher end, 441 00:20:21,679 --> 00:20:24,640 which they have spent a lot of resources in to reformulate. 442 00:20:24,682 --> 00:20:26,934 - [Narrator] They call it Lipton Original. 443 00:20:27,059 --> 00:20:29,437 It not only copies Snapple's glass bottles, 444 00:20:29,562 --> 00:20:32,690 it's also brewed with real tea leaves. 445 00:20:32,732 --> 00:20:35,985 [suspenseful music] 446 00:20:36,110 --> 00:20:36,902 - It's good. 447 00:20:40,531 --> 00:20:41,824 What's this? 448 00:20:41,949 --> 00:20:43,492 - [Narrator] But it's a different innovation 449 00:20:43,617 --> 00:20:46,078 that may give Lipton the edge. 450 00:20:46,203 --> 00:20:48,080 - Something else we wanted to show you. 451 00:20:48,205 --> 00:20:50,291 - By the early 90s, there were some advancement 452 00:20:50,332 --> 00:20:52,376 in aluminum can technology 453 00:20:52,501 --> 00:20:54,420 where they actually put an epoxy resin 454 00:20:54,587 --> 00:20:56,589 inside the lining of the can, 455 00:20:56,714 --> 00:21:00,301 so even a highly acidic drink, like an iced tea, 456 00:21:00,468 --> 00:21:03,012 was not affected by the aluminum packaging. 457 00:21:03,137 --> 00:21:05,306 [suspenseful music] 458 00:21:05,431 --> 00:21:06,932 - [Narrator] Hess sees an opportunity 459 00:21:07,057 --> 00:21:09,769 to give canned iced tea a second chance. 460 00:21:09,894 --> 00:21:12,313 - We thought we could market it at a lower price point 461 00:21:13,439 --> 00:21:15,316 under a new brand name. 462 00:21:15,441 --> 00:21:18,402 - They add this shocking yellow sort of banner 463 00:21:18,527 --> 00:21:22,156 and they call it Lipton Brisk. 464 00:21:23,657 --> 00:21:24,533 - I like it. 465 00:21:26,118 --> 00:21:27,953 - [Jason] The funny thing is, it's still the same 466 00:21:28,078 --> 00:21:30,039 powdered iced tea they'd been making. 467 00:21:30,164 --> 00:21:31,540 But I remember Lipton Brisk 468 00:21:31,707 --> 00:21:34,877 and I absolutely thought it was brand-new. 469 00:21:35,002 --> 00:21:36,504 It felt very hip and cool. 470 00:21:36,629 --> 00:21:39,298 So talk about a successful rebrand. 471 00:21:41,258 --> 00:21:44,762 - [Narrator] In 1991, Lipton fights back against Snapple 472 00:21:44,887 --> 00:21:48,224 with their two new ready-to-drink iced teas. 473 00:21:48,349 --> 00:21:51,477 - The Lipton original would come sweetened or unsweetened 474 00:21:51,602 --> 00:21:54,730 in a 16-ounce glass bottle, and that was about a dollar. 475 00:21:54,855 --> 00:21:58,609 Lipton Brisk came in a 12-ounce can for about 50 cents. 476 00:21:58,734 --> 00:22:01,028 So that one was for the more cost-conscious. 477 00:22:01,195 --> 00:22:04,156 - They also introduced a new joint venture with Pepsi. 478 00:22:04,281 --> 00:22:07,284 Lipton was now able to bottle its products 479 00:22:07,409 --> 00:22:09,495 using Pepsi's bottling lines, 480 00:22:09,620 --> 00:22:13,874 and it also had the marketing might and the sales force, 481 00:22:13,999 --> 00:22:17,378 and that breathed fresh life into the brand. 482 00:22:17,545 --> 00:22:18,504 [rousing music] 483 00:22:18,629 --> 00:22:21,048 - This is bad news for Snapple. 484 00:22:21,090 --> 00:22:22,550 - [Narrator] With Pepsi's backing, 485 00:22:22,675 --> 00:22:26,095 Lipton spends nearly $30 million on a media blitz, 486 00:22:26,220 --> 00:22:28,347 and within months, outsells Snapple 487 00:22:28,514 --> 00:22:31,016 in key regions like the West Coast. 488 00:22:31,141 --> 00:22:32,893 - The Snapple founders realize 489 00:22:33,018 --> 00:22:34,979 that they need to come up with a solution here, 490 00:22:35,145 --> 00:22:38,607 and they don't have the resources that Lipton does, 491 00:22:38,649 --> 00:22:41,443 now that they've teamed up with Pepsi especially. 492 00:22:41,569 --> 00:22:44,989 It's kind of a David versus Goliath situation. 493 00:22:45,155 --> 00:22:47,908 - [Narrator] While Lipton and Snapple trade blows, 494 00:22:49,326 --> 00:22:53,038 a tiny brewery in Brooklyn can't even get off the ground. 495 00:22:53,163 --> 00:22:56,584 - Hornell Brewing made malt liquor and cheap beer. 496 00:22:56,709 --> 00:22:58,127 It came to a point 497 00:22:58,252 --> 00:22:59,962 where they just really wanted to expand their business. 498 00:23:00,087 --> 00:23:01,672 - [Adam] Hornell's got a big problem though. 499 00:23:01,797 --> 00:23:03,465 They are making a product 500 00:23:03,591 --> 00:23:06,218 that only people over 21 years old can enjoy, 501 00:23:06,343 --> 00:23:09,388 the customer base is almost overwhelmingly men, 502 00:23:09,555 --> 00:23:12,266 and they're really only doing their business 503 00:23:12,391 --> 00:23:13,601 May through August. 504 00:23:13,642 --> 00:23:15,895 The winter months are utter crap for them. 505 00:23:17,605 --> 00:23:19,315 - You got enough iced tea? 506 00:23:19,440 --> 00:23:20,316 - That there? 507 00:23:20,441 --> 00:23:21,734 That's not gonna last a week. 508 00:23:22,985 --> 00:23:25,946 - You really sell that much, in the winter? 509 00:23:26,071 --> 00:23:27,489 - Doesn't make sense, does it? 510 00:23:28,699 --> 00:23:30,284 - [Narrator] He doesn't know it yet, 511 00:23:30,326 --> 00:23:33,454 but this moment will transform his failing beer business 512 00:23:33,579 --> 00:23:36,457 into a multi-billion dollar powerhouse, 513 00:23:36,582 --> 00:23:38,959 disrupting the iced tea industry, 514 00:23:39,001 --> 00:23:41,962 and bringing Snapple and Lipton to their knees. 515 00:23:42,087 --> 00:23:43,047 [rousing music] 516 00:23:46,508 --> 00:23:47,968 [rousing music] 517 00:23:48,260 --> 00:23:51,597 - [Narrator] In the early 1990s, the partners of Hornell Brewing 518 00:23:51,722 --> 00:23:54,099 look for ways to help their floundering business. 519 00:23:54,224 --> 00:23:56,685 - What the hell do we know about brewing tea? 520 00:23:56,810 --> 00:23:57,895 - We already brew malt liquor. 521 00:23:58,020 --> 00:23:59,063 How hard can it be? 522 00:24:00,940 --> 00:24:03,359 - John Ferolito and Don Vultaggio 523 00:24:03,400 --> 00:24:04,944 were childhood friends, 524 00:24:05,069 --> 00:24:06,278 and they decided to go into the 525 00:24:06,403 --> 00:24:08,364 beer distribution business together. 526 00:24:08,489 --> 00:24:10,741 - They team up right after high school, 527 00:24:10,908 --> 00:24:15,829 buy a VW Bug for $200, and use it to deliver beer 528 00:24:15,996 --> 00:24:19,208 all around Brooklyn, Manhattan, and Queens. 529 00:24:19,333 --> 00:24:21,585 - [Narrator] In the early 80s, they pivoted to brewing, 530 00:24:21,710 --> 00:24:25,089 making a malt liquor called Midnight Dragon. 531 00:24:25,214 --> 00:24:28,842 - Malt liquor is different from more traditional beer, 532 00:24:28,884 --> 00:24:31,261 because it is produced by fermentation 533 00:24:31,428 --> 00:24:33,013 rather than distillation, 534 00:24:33,138 --> 00:24:36,642 which means that it has a higher alcoholic content. 535 00:24:36,767 --> 00:24:39,853 - [Will] Malt liquor is pretty much synonymous with value. 536 00:24:39,979 --> 00:24:41,397 They are already learning, 537 00:24:41,522 --> 00:24:44,733 hey, not everything needs to be something highfalutin. 538 00:24:44,858 --> 00:24:46,485 People want more alcohol. 539 00:24:46,610 --> 00:24:48,529 They want it quick, they want it cold. 540 00:24:48,654 --> 00:24:49,530 It's that simple. 541 00:24:50,906 --> 00:24:52,491 - [Narrator] But sales of Midnight Dragon 542 00:24:52,616 --> 00:24:54,618 have been sporadic at best. 543 00:24:54,743 --> 00:24:55,828 - Think about it. 544 00:24:55,995 --> 00:24:57,830 Everyone, everyone can drink iced tea, 545 00:24:57,997 --> 00:25:01,625 men, women, young people, old people, all year round. 546 00:25:01,750 --> 00:25:04,294 - And he realizes, they have product development experience. 547 00:25:04,420 --> 00:25:05,546 So he thinks, you know what, 548 00:25:05,671 --> 00:25:07,715 we can actually make a better iced tea 549 00:25:07,840 --> 00:25:10,843 than what's been selling in stores. 550 00:25:10,968 --> 00:25:13,012 - Yeah, but there's already Lipton and Snapple. 551 00:25:13,137 --> 00:25:15,347 That's like going up against Coke and Pepsi. 552 00:25:15,514 --> 00:25:18,517 - Okay, then we'll be Dr. Pepper. 553 00:25:18,642 --> 00:25:20,644 [dramatic music] 554 00:25:20,769 --> 00:25:23,230 If there's room for two, there's room for three. 555 00:25:26,525 --> 00:25:28,819 - They brew beer, and you could see why they would think 556 00:25:28,986 --> 00:25:31,613 that's more complex than making iced tea. 557 00:25:31,739 --> 00:25:35,868 But in reality, brewing tea is also super, super difficult. 558 00:25:36,035 --> 00:25:37,286 There's a lot of varieties, 559 00:25:37,453 --> 00:25:40,080 and brewing beer doesn't give you direct knowledge 560 00:25:40,122 --> 00:25:41,999 into how to make really good iced tea. 561 00:25:45,210 --> 00:25:46,754 [rousing music] 562 00:25:46,879 --> 00:25:48,881 - [Narrator] Meanwhile, Snapple is facing 563 00:25:48,922 --> 00:25:50,883 a very different reality. 564 00:25:50,924 --> 00:25:53,177 Pepsi-backed Lipton is outspending them 565 00:25:53,302 --> 00:25:55,637 on a scale they can't match. 566 00:25:55,763 --> 00:25:57,890 - What time is he supposed to be here? 567 00:25:57,931 --> 00:25:59,600 - Half an hour ago. 568 00:25:59,725 --> 00:26:02,144 - [Narrator] In 1991, they roll the dice 569 00:26:02,269 --> 00:26:05,064 on an unconventional marketing strategy. 570 00:26:05,189 --> 00:26:07,858 - Should we call his people to reschedule? 571 00:26:07,983 --> 00:26:09,401 - I'm sure he is always late. 572 00:26:10,444 --> 00:26:13,155 - Instead of TV or print advertising, 573 00:26:13,280 --> 00:26:16,116 Snapple decides to save money on radio ads, 574 00:26:16,241 --> 00:26:18,535 because they know folks are stuck in their car 575 00:26:18,660 --> 00:26:22,331 for long commutes, everybody's listening to the radio. 576 00:26:22,456 --> 00:26:24,333 - [Narrator] They want who, like Snapple, 577 00:26:24,458 --> 00:26:26,960 feels outside the corporate mainstream 578 00:26:27,086 --> 00:26:29,004 and hasn't yet reached his peak. 579 00:26:30,297 --> 00:26:34,009 - [Adam] They focus on one particular disc jockey 580 00:26:34,051 --> 00:26:39,056 who is as hated as he is loved, revered as he is reviled. 581 00:26:41,141 --> 00:26:43,685 - Mr. Stern, big fan. 582 00:26:43,811 --> 00:26:44,812 Welcome to Snapple. 583 00:26:44,937 --> 00:26:48,273 - The one, the only, Howard Stern. 584 00:26:48,398 --> 00:26:50,651 - [Narrator] In 1991, Howard Stern 585 00:26:50,776 --> 00:26:53,570 hosts a popular morning radio show in New York 586 00:26:53,695 --> 00:26:56,865 that's just starting to be syndicated beyond the city. 587 00:26:56,990 --> 00:26:59,284 Snapple takes a major gamble, 588 00:26:59,326 --> 00:27:02,621 putting up $2 million to sign Stern. 589 00:27:02,788 --> 00:27:04,289 - They decide to include a clause 590 00:27:04,331 --> 00:27:07,209 that requires Stern to read the ads himself, 591 00:27:07,334 --> 00:27:10,546 and you never know exactly what he's going to say. 592 00:27:11,630 --> 00:27:13,340 - [Jason] Sometimes he calls it Crapple, 593 00:27:13,507 --> 00:27:15,300 but most times he calls it Snapple. 594 00:27:15,467 --> 00:27:17,094 Even so, he seems to have fun with it, 595 00:27:17,219 --> 00:27:19,304 he genuinely seems to like Snapple 596 00:27:19,429 --> 00:27:20,681 when he is talking about it. 597 00:27:20,722 --> 00:27:24,017 - It was naughty, and fun, and dangerous, 598 00:27:24,142 --> 00:27:29,147 and it was right there on your FM dial, 599 00:27:29,314 --> 00:27:31,483 and that's where Snapple was. 600 00:27:31,608 --> 00:27:33,652 - [Narrator] Within a year, Stern's show breaks out, 601 00:27:33,777 --> 00:27:36,989 becoming the highest rated radio program in the country. 602 00:27:37,155 --> 00:27:39,700 - As Howard Stern's own star rises, 603 00:27:39,867 --> 00:27:42,286 Snapple's star rises right along with him. 604 00:27:42,327 --> 00:27:43,871 - [Narrator] By the end of 1991, 605 00:27:44,037 --> 00:27:48,292 Snapple's revenue more than doubles to $95 million, 606 00:27:48,417 --> 00:27:49,501 enough to put Snapple 607 00:27:49,668 --> 00:27:51,962 back at the top of the iced tea market. 608 00:27:52,087 --> 00:27:54,006 - I mean, it was the perfect synergy. 609 00:27:54,131 --> 00:27:58,093 Stern, Snapple equals success. 610 00:27:59,177 --> 00:28:01,221 [suspenseful music] 611 00:28:01,388 --> 00:28:03,473 - [Bobby] Imagine being in Lipton's shoes. 612 00:28:03,599 --> 00:28:05,809 This is a company with a hundred-year lineage, 613 00:28:05,934 --> 00:28:07,978 and they're getting absolutely stomped 614 00:28:08,103 --> 00:28:11,607 by these industrious guys from a health food store. 615 00:28:11,648 --> 00:28:14,484 - [Narrator] But Snapple isn't Hess's only threat. 616 00:28:14,610 --> 00:28:16,445 [suspenseful music] 617 00:28:16,570 --> 00:28:20,782 In Brooklyn, Vultaggio and Ferolito work feverishly 618 00:28:20,949 --> 00:28:23,785 to turn iced tea into a three-way race. 619 00:28:25,287 --> 00:28:26,914 - I think we're too late. 620 00:28:28,415 --> 00:28:32,502 - This era really marks the rise of iced tea. 621 00:28:32,628 --> 00:28:33,670 - [Narrator] In one year, 622 00:28:33,795 --> 00:28:36,256 ready-to-drink tea sales jump 50%, 623 00:28:36,381 --> 00:28:38,926 while soft drinks grow by less than one. 624 00:28:38,967 --> 00:28:41,011 - There's a move away from soda 625 00:28:41,136 --> 00:28:44,932 as Americans are looking for healthier beverages to consume. 626 00:28:45,057 --> 00:28:47,017 You get a number of other companies 627 00:28:47,142 --> 00:28:50,437 that begin to move into the iced tea space. 628 00:28:50,562 --> 00:28:54,816 - [Adam] Coca-Cola and Nestle decide to join forces 629 00:28:54,942 --> 00:28:58,654 with a $20 million ad campaign, 630 00:28:58,779 --> 00:29:03,367 and Nestea becomes the number three most popular brand, 631 00:29:03,492 --> 00:29:06,954 behind number one Snapple and number two Lipton. 632 00:29:07,079 --> 00:29:10,791 - [Katie] But then you also have brands like Mistic, Apple & Eve, 633 00:29:10,958 --> 00:29:12,960 Turkey Hill, you have Nantucket Nectars 634 00:29:13,085 --> 00:29:14,211 launching their own iced teas, 635 00:29:14,252 --> 00:29:16,296 and the market is really growing. 636 00:29:16,421 --> 00:29:18,256 [rousing music] 637 00:29:18,382 --> 00:29:20,425 - They've spent months tinkering with this recipe 638 00:29:20,550 --> 00:29:21,927 and trying to come up with something 639 00:29:21,969 --> 00:29:25,055 that they think is gonna compete with Snapple and Lipton. 640 00:29:26,556 --> 00:29:28,225 But now they start to wonder, 641 00:29:28,392 --> 00:29:31,144 is the tea market already oversaturated? 642 00:29:31,269 --> 00:29:33,897 [rousing music] 643 00:29:38,485 --> 00:29:41,363 - [Narrator] In the early 1990s, the explosion of tea brands 644 00:29:41,363 --> 00:29:43,991 blindsides Vultaggio and Ferolito 645 00:29:44,116 --> 00:29:46,576 just as they are finalizing their recipe. 646 00:29:46,702 --> 00:29:49,162 - What do any of these have that our iced tea doesn't? 647 00:29:49,162 --> 00:29:52,666 - Let's see, distribution, branding, advertising. 648 00:29:52,791 --> 00:29:55,168 - They don't have our taste. 649 00:29:55,293 --> 00:29:56,503 Ours tastes better. 650 00:29:57,629 --> 00:30:00,924 - Taste alone isn't enough, not anymore. 651 00:30:01,049 --> 00:30:02,759 - With all the entrants in this space, 652 00:30:02,884 --> 00:30:06,805 store shelves and refrigerator cases are just so crowded. 653 00:30:06,930 --> 00:30:08,682 - Don and John had been in the beverage business 654 00:30:08,682 --> 00:30:11,893 for about 15 years at this point, 655 00:30:12,019 --> 00:30:14,896 and they learned that their taller malt liquor cans 656 00:30:15,105 --> 00:30:16,606 really stood out on a shelf. 657 00:30:18,275 --> 00:30:20,944 [rousing music] 658 00:30:22,362 --> 00:30:23,989 - How's that for making a statement? 659 00:30:24,114 --> 00:30:25,490 [rousing music] 660 00:30:25,615 --> 00:30:28,201 - Right now, close your eyes, picture a can of beer. 661 00:30:28,243 --> 00:30:31,371 The can you're thinking of is a 12-ounce can. 662 00:30:31,496 --> 00:30:33,498 Hornell's Midnight Dragon comes in a can 663 00:30:33,623 --> 00:30:36,251 that is affectionately known as a "taller boy," 664 00:30:36,376 --> 00:30:39,629 or a silo that holds, I kid you not, 665 00:30:39,755 --> 00:30:43,550 24 ounces of malt liquor. 666 00:30:43,675 --> 00:30:47,429 I mean, just one sip and you break out in handcuffs. 667 00:30:47,554 --> 00:30:49,347 - [Narrator] The taller can offers more 668 00:30:49,473 --> 00:30:51,391 than just a greater amount of tea. 669 00:30:51,516 --> 00:30:53,727 - Don and John learned in the malt liquor business, 670 00:30:53,852 --> 00:30:56,188 a bigger can gives you more space 671 00:30:56,313 --> 00:30:58,565 to create an eye-popping design, to stand out. 672 00:30:58,690 --> 00:31:00,817 So they decided to turn this giant can 673 00:31:00,942 --> 00:31:03,070 into a walking billboard. 674 00:31:03,195 --> 00:31:06,740 - [Adam] The image they want to evoke in their iced tea 675 00:31:06,948 --> 00:31:09,826 is someplace that is faintly exotic, 676 00:31:09,951 --> 00:31:12,079 someplace where people might drink 677 00:31:12,204 --> 00:31:14,498 iced tea every single day. 678 00:31:15,874 --> 00:31:20,170 So, they look at a map and they ultimately decide, 679 00:31:20,295 --> 00:31:21,588 Santa Fe. 680 00:31:25,300 --> 00:31:27,969 - Don himself said that he had never even set foot 681 00:31:28,095 --> 00:31:29,179 west of the Mississippi. 682 00:31:29,387 --> 00:31:30,972 He's a very East Coast guy. 683 00:31:31,098 --> 00:31:32,974 But he and his wife had just bought a house, 684 00:31:33,100 --> 00:31:35,185 and they decked it out in a southwestern theme, 685 00:31:35,310 --> 00:31:37,562 the turquoise, the pinks, the yellows, 686 00:31:37,604 --> 00:31:39,356 so much so that friends would joke 687 00:31:39,481 --> 00:31:42,526 and call it the Santa Fe House to kinda make fun of him. 688 00:31:42,651 --> 00:31:43,652 - What's the matter? 689 00:31:44,569 --> 00:31:46,071 - I like it. 690 00:31:46,196 --> 00:31:49,699 It's just that Santa Fe doesn't quite sit right on a can. 691 00:31:50,867 --> 00:31:53,870 It needs one word, like Snapple or Lipton. 692 00:31:55,122 --> 00:31:58,208 [rousing music] 693 00:31:58,333 --> 00:31:59,709 - I think I have an idea. 694 00:32:01,753 --> 00:32:06,800 - Then suddenly, Don realizes his uncle moved out west 695 00:32:06,925 --> 00:32:11,179 when he had lung problems, to a hotter, drier climate, 696 00:32:11,388 --> 00:32:14,975 and his uncle moved to Arizona. 697 00:32:15,851 --> 00:32:17,477 - What's with the capital Z? 698 00:32:19,229 --> 00:32:21,106 - Looks better that way. 699 00:32:21,231 --> 00:32:22,524 [rousing music] 700 00:32:22,649 --> 00:32:24,734 - [Narrator] In May of 1992, 701 00:32:24,860 --> 00:32:27,988 AriZona Iced Tea launches in New York City. 702 00:32:29,281 --> 00:32:31,575 It's 30% bigger than Snapple, 703 00:32:31,700 --> 00:32:34,327 and twice the size of Lipton Brisk. 704 00:32:34,452 --> 00:32:38,123 - Vultaggio and Ferolito use the same distribution network 705 00:32:38,248 --> 00:32:40,208 as bodegas and gas stations 706 00:32:40,333 --> 00:32:41,877 that they did for their malt liquor, 707 00:32:42,002 --> 00:32:44,713 and they're doing zero marketing or advertising. 708 00:32:44,838 --> 00:32:46,673 - [Narrator] It's a cost-cutting strategy 709 00:32:46,798 --> 00:32:50,093 that allows them to sell their cans for 99 cents, 710 00:32:50,218 --> 00:32:53,096 the best deal in ready-to-drink iced tea. 711 00:32:53,221 --> 00:32:56,016 - Don believed that if he made a great product 712 00:32:56,141 --> 00:32:59,019 that stood out, that was sold at a reasonable price, 713 00:32:59,227 --> 00:33:01,563 it would just kind of sell itself. 714 00:33:01,897 --> 00:33:04,482 - AriZona Iced Tea is a promise, you know what I'm saying? 715 00:33:04,608 --> 00:33:06,109 Look how promising that can is. 716 00:33:06,234 --> 00:33:07,402 There's so much more iced tea. 717 00:33:07,444 --> 00:33:09,738 99 cents? I got a buck in my pocket. 718 00:33:09,863 --> 00:33:12,240 Everything about that is promise and fulfillment. 719 00:33:13,658 --> 00:33:18,121 - The lemon flavor wasn't that artificial lemonade flavor. 720 00:33:19,414 --> 00:33:21,750 It tasted more like you squeezed a bit of lemon 721 00:33:21,875 --> 00:33:23,710 into a glass of tea. 722 00:33:23,835 --> 00:33:27,214 And the sweetness was much more like honey 723 00:33:27,339 --> 00:33:29,090 than it was sugar. 724 00:33:29,216 --> 00:33:33,094 - [Narrator] In its first year, AriZona sells 700,000 cases, 725 00:33:33,220 --> 00:33:34,930 earning over $10 million. 726 00:33:36,097 --> 00:33:38,934 One year later, it overtakes Nestea. 727 00:33:39,059 --> 00:33:40,977 - It found itself in third place. 728 00:33:41,102 --> 00:33:44,147 So they were still behind Lipton, the old guard of tea, 729 00:33:44,272 --> 00:33:46,149 and Snapple, which at the time was kind of 730 00:33:46,274 --> 00:33:48,443 the upstart darling of the market. 731 00:33:48,485 --> 00:33:51,029 [suspenseful music] 732 00:33:51,154 --> 00:33:53,240 - Apparently it's been outselling Nestea. 733 00:33:54,532 --> 00:33:55,867 - It's one after another. 734 00:33:55,992 --> 00:33:58,119 - [Narrator] Lipton's Hess is most focused 735 00:33:58,161 --> 00:34:00,163 on taking back the top spot. 736 00:34:00,288 --> 00:34:01,498 - We have to position ourselves 737 00:34:01,706 --> 00:34:03,833 as being the authentic traditional iced tea. 738 00:34:05,293 --> 00:34:06,878 How do we do that? 739 00:34:07,003 --> 00:34:08,213 - By this point in time, 740 00:34:08,338 --> 00:34:12,217 Snapple controls about 25% of iced tea sales, 741 00:34:12,425 --> 00:34:14,844 but Lipton is only 12%. 742 00:34:14,969 --> 00:34:17,639 So they're quite far behind in this race. 743 00:34:17,764 --> 00:34:20,684 - Maybe, instead of telling consumers 744 00:34:20,725 --> 00:34:22,560 that we're authentic and traditional, 745 00:34:23,728 --> 00:34:26,523 we tell them the competition isn't. 746 00:34:26,523 --> 00:34:28,233 [suspenseful music] 747 00:34:28,358 --> 00:34:32,195 - [Adam] In 1993, Hess decides to attack Snapple, 748 00:34:32,320 --> 00:34:34,739 saying that they use a powdered drink mix, 749 00:34:34,864 --> 00:34:37,367 and that their claims about being real brewed 750 00:34:37,492 --> 00:34:39,619 and all natural are all false, 751 00:34:39,828 --> 00:34:42,246 that they're all lies, they're all hokum, 752 00:34:42,371 --> 00:34:44,958 and that if you want real tea, go to the company 753 00:34:45,083 --> 00:34:48,295 whose tea you've been drinking for generations. 754 00:34:48,420 --> 00:34:50,088 - [Narrator] Though the charges are unfounded, 755 00:34:50,213 --> 00:34:52,674 the damage to Snapple is swift. 756 00:34:52,799 --> 00:34:54,509 - The smear campaign works. 757 00:34:54,634 --> 00:34:57,846 In the summer of 1993, Lipton reclaims its spot 758 00:34:57,971 --> 00:34:59,639 as the number one ready-to-drink 759 00:34:59,764 --> 00:35:01,641 iced tea company in America. 760 00:35:02,684 --> 00:35:04,394 [suspenseful music] 761 00:35:04,519 --> 00:35:08,440 - As if losing the number one spot to Lipton wasn't enough, 762 00:35:08,481 --> 00:35:12,444 the attack ad triggered an FDA investigation 763 00:35:12,444 --> 00:35:15,280 into how Snapple makes their tea. 764 00:35:15,322 --> 00:35:16,531 - Okay, so what? 765 00:35:16,656 --> 00:35:18,283 It is all natural. 766 00:35:18,325 --> 00:35:20,368 Why don't we just tell them what's in it? 767 00:35:20,493 --> 00:35:22,412 - It's not an easy attack to defend, 768 00:35:22,537 --> 00:35:25,373 because Snapple can't just come out and tell the FDA 769 00:35:25,498 --> 00:35:26,791 how they actually make their tea 770 00:35:26,916 --> 00:35:29,836 without revealing all of their trade secrets, 771 00:35:29,961 --> 00:35:31,588 and I think Lipton knew that. 772 00:35:31,713 --> 00:35:33,673 - They don't just want the ingredients, 773 00:35:34,633 --> 00:35:35,800 they want the recipe. 774 00:35:39,763 --> 00:35:40,138 [suspenseful music] 775 00:35:41,431 --> 00:35:43,475 - [Narrator] In 1993, the Food and Drug Administration 776 00:35:43,600 --> 00:35:45,435 has launched an investigation 777 00:35:45,560 --> 00:35:47,771 into Snapple's proprietary recipe. 778 00:35:47,896 --> 00:35:49,189 - In the beverage business, 779 00:35:49,314 --> 00:35:53,568 original, unique recipes, that's your currency, 780 00:35:53,693 --> 00:35:56,571 and giving away your recipes to the public 781 00:35:56,696 --> 00:35:59,115 would destroy the company. 782 00:35:59,240 --> 00:36:01,826 - What if we just didn't say real brewed? 783 00:36:01,951 --> 00:36:03,828 That's all they're really questioning. 784 00:36:05,372 --> 00:36:06,498 - Then what do we say? 785 00:36:06,665 --> 00:36:08,083 - Made with the best ingredients, 786 00:36:08,124 --> 00:36:09,918 or the finest tea leaves. 787 00:36:10,085 --> 00:36:11,336 - Doesn't sound like us. 788 00:36:12,045 --> 00:36:13,171 How would we say it? 789 00:36:14,297 --> 00:36:17,509 - The best stuff. 790 00:36:17,634 --> 00:36:19,803 - They were always good about coming up with innovative ways 791 00:36:19,928 --> 00:36:21,096 to solve their problems. 792 00:36:21,221 --> 00:36:22,931 They replaced all natural 793 00:36:23,056 --> 00:36:25,392 with a clever description of their product, 794 00:36:25,517 --> 00:36:27,602 one that people will associate with Snapple 795 00:36:27,727 --> 00:36:28,978 for the rest of time. 796 00:36:29,938 --> 00:36:33,274 - Snapple, made from the best stuff. 797 00:36:34,317 --> 00:36:35,276 - On earth. 798 00:36:37,821 --> 00:36:38,947 - Now we just need a supermodel 799 00:36:39,072 --> 00:36:40,198 to say it on national television, 800 00:36:40,365 --> 00:36:42,450 like Pepsi and Cindy Crawford. 801 00:36:42,575 --> 00:36:44,786 - Brands have always hired celebrity spokespeople, 802 00:36:44,911 --> 00:36:48,957 but in the 80s and 90s, things reached entirely new heights. 803 00:36:49,124 --> 00:36:52,544 You have Coca-Cola, and Nike, and Pepsi 804 00:36:52,669 --> 00:36:57,632 paying astronomical sums to hire athletes and supermodels. 805 00:36:57,757 --> 00:36:59,884 - [Narrator] But Snapple has always taken 806 00:36:59,926 --> 00:37:02,721 a more creative approach to advertising. 807 00:37:02,762 --> 00:37:03,888 - You guys gotta hear these. 808 00:37:04,013 --> 00:37:05,974 We got a letter from a lady who says, 809 00:37:06,099 --> 00:37:08,143 "Snapple is perhaps the only good thing 810 00:37:08,309 --> 00:37:09,978 that has ever come out of New York." 811 00:37:10,019 --> 00:37:12,814 - Wendy Kaufman is a Snapple employee, 812 00:37:12,939 --> 00:37:15,066 and she's taken it upon herself 813 00:37:15,191 --> 00:37:18,236 to respond to the fan mail the brand was getting. 814 00:37:18,361 --> 00:37:19,654 - And here's another one. 815 00:37:22,490 --> 00:37:25,952 - Look, you'd expect a celebrity to be getting fan mail, 816 00:37:26,077 --> 00:37:28,538 but this is a bottled iced tea. 817 00:37:29,998 --> 00:37:31,082 - What? 818 00:37:31,207 --> 00:37:32,333 - Wendy, can you say, 819 00:37:32,459 --> 00:37:35,295 "Snapple, made from the best stuff on earth?" 820 00:37:36,421 --> 00:37:39,048 - "Snapple, made from the best stuff on earth." 821 00:37:39,174 --> 00:37:41,843 [rousing music] 822 00:37:41,968 --> 00:37:45,138 - Wendy felt that people that were taking the time 823 00:37:45,263 --> 00:37:48,308 to write fan letters to a product they love 824 00:37:48,433 --> 00:37:50,393 should be responded to, 825 00:37:50,518 --> 00:37:52,145 and that's what the commercials were. 826 00:37:52,270 --> 00:37:54,981 - A while ago, I got a letter from Michael Lesage. 827 00:37:55,148 --> 00:37:56,566 "I'm getting married in June. 828 00:37:56,691 --> 00:37:59,444 I would like to lay in a supply of Snapple for the wedding." 829 00:37:59,569 --> 00:38:00,987 That's so romantic. 830 00:38:01,112 --> 00:38:03,490 - [Narrator] The ads are unorthodox, funny, 831 00:38:03,615 --> 00:38:05,950 and inexpensive compared to Lipton's, 832 00:38:06,075 --> 00:38:09,329 and they turn Wendy Kaufman into a national sensation. 833 00:38:09,454 --> 00:38:11,706 - What better representation of your brand, 834 00:38:11,831 --> 00:38:14,125 built on the foundation of being real, 835 00:38:14,250 --> 00:38:16,377 and natural, and authentic? 836 00:38:16,419 --> 00:38:18,588 - [Adam] People felt, hey, I know someone like Wendy, 837 00:38:18,713 --> 00:38:21,216 and if nothing else, I want to consume the product 838 00:38:21,341 --> 00:38:24,594 that feels that she is worthy to be the face of their brand. 839 00:38:24,719 --> 00:38:29,599 - [Narrator] By 1994, Snapple pulls in $674 million, 840 00:38:29,724 --> 00:38:33,394 and reclaims the number one spot. 841 00:38:33,520 --> 00:38:35,522 But while Snapple is soaring, 842 00:38:35,647 --> 00:38:39,818 after a meteoric launch, sales of AriZona have stalled. 843 00:38:39,859 --> 00:38:44,197 - By the mid 90s, AriZona Iced Tea was available nationwide, 844 00:38:44,322 --> 00:38:48,034 but they were still primarily confined to liquor stores, 845 00:38:48,159 --> 00:38:49,619 to gas stations. 846 00:38:49,744 --> 00:38:52,789 They hadn't broken into those big grocery store chains. 847 00:38:52,914 --> 00:38:54,082 - [Narrator] To make matters worse, 848 00:38:54,207 --> 00:38:57,460 costs have been rising, pushing profits down. 849 00:38:57,627 --> 00:39:00,880 - [Katie] In the mid 90s, the price of aluminum rises sharply, 850 00:39:01,005 --> 00:39:02,715 30% in just six months. 851 00:39:02,882 --> 00:39:06,094 So pretty much everyone who's selling canned drinks 852 00:39:06,219 --> 00:39:09,430 also raises prices, but AriZona doesn't. 853 00:39:09,556 --> 00:39:11,015 - Maybe it's time that we raise our prices. 854 00:39:11,140 --> 00:39:12,267 - No, no. 855 00:39:12,392 --> 00:39:13,768 - Even though it's cutting into margins, 856 00:39:13,893 --> 00:39:16,312 they wanna stay committed to that low price. 857 00:39:16,437 --> 00:39:17,355 - We're the value brand. 858 00:39:17,480 --> 00:39:18,690 Big can, low price. 859 00:39:18,815 --> 00:39:20,191 That's our thing. 860 00:39:20,316 --> 00:39:23,403 If I had it my way, we'd never raise our prices, ever. 861 00:39:23,444 --> 00:39:25,280 - Look, retailers are gonna charge you what they want. 862 00:39:25,321 --> 00:39:26,447 We can't change that. 863 00:39:27,532 --> 00:39:28,908 - Vultaggio wants to keep the price 864 00:39:29,033 --> 00:39:31,202 of AriZona Iced Tea at 99 cents, 865 00:39:31,327 --> 00:39:33,997 but that only works if he's selling at a high volume. 866 00:39:34,122 --> 00:39:35,456 If stores end up marking up the cans 867 00:39:35,582 --> 00:39:37,292 of AriZona Iced Tea on their own, 868 00:39:37,417 --> 00:39:38,626 it loses its value, 869 00:39:38,751 --> 00:39:40,753 and customers are totally turned off. 870 00:39:42,255 --> 00:39:44,757 - What if we could? 871 00:39:44,883 --> 00:39:47,886 What if we wrote the price right on the can? 872 00:39:48,011 --> 00:39:49,095 [suspenseful music] 873 00:39:49,220 --> 00:39:52,015 - Don has that true real Brooklyn integrity, 874 00:39:52,140 --> 00:39:53,683 God love him, 875 00:39:53,725 --> 00:39:57,604 and he says, "not only are we not gonna raise our price, 876 00:39:57,729 --> 00:40:01,816 we're gonna print the price right on the can." 877 00:40:01,858 --> 00:40:05,486 The price is 99 cents, and that's what it is. 878 00:40:05,612 --> 00:40:09,991 - [Narrator] In 1996, AriZona unveils a new can design, 879 00:40:10,116 --> 00:40:14,162 stamped with a bold, non-negotiable price. 880 00:40:14,287 --> 00:40:16,539 - That big 99 cents right on the can 881 00:40:16,706 --> 00:40:19,250 is like a beacon to consumers, 882 00:40:19,375 --> 00:40:23,963 and almost overnight, sales trended completely upwards. 883 00:40:24,088 --> 00:40:28,176 - [Narrator] By 1997, AriZona breaks into major supermarkets 884 00:40:28,301 --> 00:40:30,511 and pulls off the unthinkable. 885 00:40:30,637 --> 00:40:34,098 - By keeping their price point and a high quality product, 886 00:40:34,265 --> 00:40:38,436 they actually found their way to the number one spot 887 00:40:38,561 --> 00:40:40,521 in ready-to-drink iced tea. 888 00:40:41,648 --> 00:40:43,483 - [Narrator] In just over half a century, 889 00:40:43,608 --> 00:40:46,486 as coffee, milk and soda had lost ground, 890 00:40:46,611 --> 00:40:48,529 iced tea consumption in America 891 00:40:48,655 --> 00:40:51,199 has increased nearly fivefold. 892 00:40:51,324 --> 00:40:55,411 80% of all tea drank in the nation is now iced. 893 00:40:55,536 --> 00:40:57,163 - [Bobby] How amazing is it to think 894 00:40:57,288 --> 00:41:00,875 that this converted health food store in Brooklyn 895 00:41:01,000 --> 00:41:04,629 ended up reshaping the way that we look at beverages 896 00:41:04,754 --> 00:41:06,464 for the rest of time? 897 00:41:06,589 --> 00:41:08,299 - [Narrator] Snapple stays quirky, 898 00:41:08,341 --> 00:41:13,179 and adds fun facts beneath their bottle caps in 2002. 899 00:41:13,346 --> 00:41:16,849 Today, they earn over $6 billion a year. 900 00:41:18,351 --> 00:41:21,688 Yet the original tea giant is still very much in the fight, 901 00:41:21,813 --> 00:41:24,524 even using pop culture driven Claymation ads 902 00:41:24,649 --> 00:41:28,569 to give Brisk Iced Tea a distinct youthful edge. 903 00:41:28,695 --> 00:41:30,446 - Lipton Brisk and bottled iced teas 904 00:41:30,571 --> 00:41:33,241 pull in nearly a billion dollars a year, 905 00:41:33,282 --> 00:41:35,243 and they're sold in over a hundred countries. 906 00:41:35,368 --> 00:41:37,745 So, that's not bad for a company 907 00:41:37,870 --> 00:41:39,872 that's been around for 125 years. 908 00:41:39,998 --> 00:41:43,084 - [Narrator] But of the three, AriZona is still on top, 909 00:41:43,209 --> 00:41:45,795 moving nearly three billion cans a year 910 00:41:45,962 --> 00:41:47,964 without ever raising its price. 911 00:41:48,089 --> 00:41:51,718 - [Will] That towering can with the big 99 cents, 912 00:41:51,843 --> 00:41:53,970 it was just a signal to the masses out there 913 00:41:54,095 --> 00:41:56,806 that there is a company that actually cares about you. 914 00:41:56,931 --> 00:41:58,891 It's cheap, it's great. 915 00:41:59,017 --> 00:42:00,893 - [Narrator] Together, they've turned a little known 916 00:42:01,019 --> 00:42:04,439 Southern refreshment into an American icon. 917 00:42:04,564 --> 00:42:06,691 - I'm fairly certain that if a doctor 918 00:42:06,816 --> 00:42:09,527 were to take a syringe of my blood, 919 00:42:09,652 --> 00:42:12,572 I would come out at least 30% diet peach iced tea, 920 00:42:12,697 --> 00:42:15,616 and I'm fine with that, perfectly fine with that. 921 00:42:15,742 --> 00:42:17,160 I love iced tea.