1989
IT HAPPENED IN…1989
Drought in the Midwest and Southwest created
conditions similar to the 1930 Dust Bowl years.
The U.S. farm population fell to its lowest level since
before the Civil War.
The largest oil spill in U.S. history resulted
from the Exxon Valdez
striking a reef in Alaska.
Forest fires in Yellowstone National Park burned
half of the park’s 2.2 million acres.
45 million American homes were subscribing to
cable television.
A U.S. Surgeon General report on nutrition and
health indicated fat was a leading cause of disease and
overconsumption of fat was creating a major American health problem.
Smoking on passenger planes was banned.
For the first time a cigarette manufacturer was
found guilty in the cancer death of a long-time smoker.
Half of the nation’s school children reported no
cavities or other tooth decay, with the improvement attributed to
the use of fluoride and a high level of dental care.
A massive earthquake struck San Francisco just as
the World Series between San Francisco and Oakland began.
This article by Douglas C. McGill appeared in the New York Times May 17, 1989:
P. & G. Is Seeking to Sell Crush Soft-Drink Unit
The Procter & Gamble Company announced yesterday that
it was putting its Crush International soft-drink operations up for
sale, becoming the latest consumer-products giant to admit failure in an
attempt to run a soft-drink business.
Lured by the profits and growth of the soft-drink industry, Procter &
Gamble purchased Crush International from a Canadian company in 1980 for
about $50 million. The
industry posted retail sales of around $40 billion last year and is
growing about 4.5 percent a year.
Crush International makes Orange Crush soda, Hires root beer and
Sun-drop citrus sodas.
A Procter spokesman said Crush International was for sale in whole or in
parts. He said the company had a specific price in mind but would not
say what it was. A&W Brands,
Cadbury Schweppes, Dr Pepper/Seven-Up and Seagram are viewed as possible
bidders.
Other companies that have tried and failed to grab a significant portion
of the soda business in the 1980s have been Philip Morris, RJR Nabisco
and Anheuser-Busch. Philip
Morris bought Seven-Up and later sold it in a leveraged buyout to Hicks
& Haas, an investment firm.
RJR Nabisco bought Canada Dry and later sold it to Dr Pepper, and
Anheuser-Busch bought three little-known brand names that it developed
but ultimately folded. In
each case, the problem was the same, industry analysts said.
''The soft-drink industry is a unique animal from a manufacturing
and distribution standpoint,'' said Emanuel Goldman, an analyst with
Paine Webber in San Francisco.
In the soft-drink industry a company has far less control than
with most consumer products over the manufacture and distribution of the
product, which are largely performed by a complex nationwide network of
bottlers.
With most of Procter & Gamble's attention and expertise devoted to sales
of its leading products, including Tide detergent, Charmin toilet paper
and Crisco oil, the company was never able to master the bottling
system, industry experts said…Procter & Gamble tried to change the
distribution system for its sodas to follow more closely that used for
its other consumer products, said Jesse Meyers, editor of
Beverage Digest, a trade
journal. He said Procter &
Gamble wanted to distribute the product through its own warehouses,
instead of through Coca-Cola, Seven-Up and other bottlers.
The shift did not work, largely because these bottling companies
had the longstanding relationships with retail stores needed to insure a
steady supply to stores and adequate shelf space, Mr. Meyers said.
%20(arcs)%20Hires%20Root%20Beer,%20June%201989.jpg)
(Figure 1989-01, Ride Across America pin,
June 1989)
This die-cast metal 1918 Ford Model T runabout features a Hires barrel that serves as a coin bank. The shipping carton is marked "Made in U.S.A. Some parts made in China. © 1989 THE ERTL COMPANY INC. Dyersville, Iowa 52040. Manufactured with permission of The Ford Motor Company." It was assigned stock number 9435.
%20(arcs)%20Hires%20Root%20Beer%20ERTL%201918%20Ford%20Model%20T%20Barrel%20Bank.jpg)
(Figure 1989-02, ERTL Company 1918 Ford Model
T Barrel Bank)
United Press International carried this announcement
from London August 31, 1989:
Cadbury Schweppes to buy Procter & Gamble's Crush
International unit
LONDON -
Cadbury Schweppes PLC, seeking to
stake out a larger claim in the world's beverages market, announced
plans Thursday to acquire a U.S. soft drinks business…The British candy
and beverage conglomerate said it had reached agreement with Procter &
Gamble Co. to buy its Crush International unit and all the trademarks of
its carbonated soft drinks business for about $220 million cash, subject
to a working capital adjustment…Crush owns a number of popular
trademarks and brands in North America, Europe, Latin America, the
Middle East and Africa, including Hires Root Beer, Orange Crush, and Old
Colony fruit drinks.
“The acquisition of Crush is an exceptional
opportunity, increasing our worldwide drinks volume by 30 percent,” a
Cadbury Schweppes statement said.
“It is a clear continuation of our declared strategy of
developing globally our core business streams of beverages and
confectionary, and reaffirms our position as a major participant in the
global refreshment beverages business.”
If the deal goes through,
Cadbury Schweppes will increase its total market share in soft drinks in
the United States from 3.6 percent to 4.7 percent.