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SCMP Reporter

HONG KONG looks set to become embroiled in a soft-drink war after the Snapple Beverage account was awarded to BSB Asia.

  Snapple is last year's fastest-growing beverage in the United States - despite stiff competition from big timers Coca-Cola and Pepsi.

  It has been in the Hong Kong market for only the past four months and it is expected that the awarding of the Asia-Pacific business to BSB should heighten the competition between the rival drinks.

 Hamish McLennan, BSB Hong Kong's regional account director, said: ''There are fruit juices, carbonated drinks and tea, all vying for a share of people's stomachs, and there is a finite amount people will spend.''   BSB will not reveal the Snapple advertising budget but said the agency was thrilled to win what it considered an important account.

  ''Based on what's happened in the United States, the product has been absolutely phenomenal and it has huge potential here,'' Mr McLennan said.

  He would not reveal the Snapple target market, but said the agency was formulating promotion and advertising plans.

  BSB said one problem in gauging the potential for the drink was assessing the size of the Asian beverage market because there was not much detailed and accurate information.

  However, based on the extraordinary success of Snapple in the US, the agency had great expectations for the product.

  Helped along by a solid advertising campaign, it should soon be slugging it out with Coke, Pepsi and other products.

  Snapple was started in the early 1970s as a sideline business by two New York window cleaners and another investor. From that humble beginning, it took off in New York before pushing into the entire United States beverage market.

  The drink has more than 60 varieties that are continually being added to, although now only four are available in Hong Kong.

  Expectations for the drink's potential performance in Hong Kong and the region are based on what has happened in the US, where Snapple has taken the beverage market by storm. Annual sales last year were more than $500 million.

  According to June Bloclin, Snapple's director of international marketing, advertising budgets in the US had risen from $5 million three years ago to over $65 million for this financial year.

  She said the company was now ready for Asia and had awarded BSB the agency during a competitive pitch held in London in April.

  Ms Blocklin said: ''BSB is now a part of the Snapple team for two reasons - they understand the Snapple brand and they presented concrete marketing ideas rather than gimmicky concepts.

  ''We're all very excited about expanding into Asia and BSB is a perfect partner in taking us there.''   She added that it was expected that Snapple in the United States would have an advertising budget of over $85 million next year. Billings for Asia were undisclosed.

  Mr McLennan said his agency saw the Snapple account more in terms of its future potential.

  ''We believe in the future of the brand,'' he said. ''The most attractive angle is that its a major brand and it has been going wonderfully in the United States.'' 



Snapple snared by BSB in Asia