NEW YORK — Lotta Luv hopes the Snapple logo will ad pop to sales of lip glosses.
This story first appeared in the November 7, 2003 issue of WWD. Subscribe Today.
Snapple is the latest in Lotta Luv’s stable of 30 candy, snack and beverage licenses. Lotta Luv also produces cosmetics and bath products resembling the likes of Cinnabon, Hostess Twinkies, Pez, Junior Mints and other well-known treats.
The lip balms and glosses bearing the Snapple name are the first from a new division of Snapple, owned by the third-largest beverage company, Britain’s Cadbury Schweppes. “Lip balms are a perfect extension of the Snapple name because of the flavors,” said Louis Goldstein, director of licensing and entertainment marketing for Snapple. Snapple is examining other licensing opportunities for the brand known for its quirkiness.
Goldstein said Snapple and Lotta Luv share an entrepreneurial, “scrappy” operating philosophy that made the companies a good fit. “They went out of their way to match our smells and flavors. We also think they’ll be a part of our wacky stunts and guerrilla sampling tactics,” he added.
Steph Fogelson, president of Lotta Luv said his company pulled out all of the stops to duplicate the spirit of Snapple. “We found componentry that pops when you open it — just like a bottle of Snapple,” he said. Other stock keeping units include a tin that looks exactly like a Snapple cap, a replica of a Snapple bottle that opens in the center to reveal the gloss and a round lip balm that can be applied to the upper and lower lip at the same time. The famous Snapple Real Facts, bits of information printed on caps, will be featured on the covers of the lip gloss tins.
The addition of Snapple could boost Lotta Luv’s sales toward the $40 million mark, industry sources said.
The Snapple products will debut in Claire’s early next year, along with rollout to other specialty stores and mass market chains. In addition to the channels of distribution that traditionally sell Lotta Luv’s candy brands, Snapple yields entry into convenience stores and supermarkets. Snapple is a staple in food chain beverage aisles and commands 33 percent of the premium tea business and a 44 percent share of the diet tea category. “We can see clip strips of the lip products at every checkout,” said Fogelson, referring to hanging displays that capture impulse sales while people wait to be rung up.
The link with Snapple also helps Lotta Luv extend its reach to more male consumers. Snapple is equally popular with men as women and Fogelson thinks the brand will encourage more men to select a Snapple lip balm.
Lotta Luv, in turn, will help Snapple in its quest to entice younger consumers. Snapple’s consumer base is 18 to 24, while Lotta Luv has a big following with 13- to 17-year-olds. That dovetails with Snapple’s recent appointment as the drink of New York City. As part of that, Snapple was able to place vending machines in the city’s 1,200 public schools. Fogelson said vending opportunities are being examined for the beauty products.
Lotta Luv is offering 14 flavors based on the bestsellers from Snapple such as Fruit Punch, Go Bananas and Snapple Apple.
Displays will borrow from the beverage, too, with plans calling for mini-refrigerator displays and hanging cards with die-cut shapes of the Snapple bottles. Although Lotta Luv has a portfolio of numerous other brands, Fogelson doesn’t think Snapple will cannibalize from existing products.
Lotta Luv is one of a handful of companies seeking licenses with food brands. Added Extras is also packaging candy and candy makeup counterparts, while Bonne Bell has new licenses with Skittles and Starburst.