Triarc Cos -- just weeks after Snapple acquisition -- agrees to buy Denver-based Cable Car Beverage Corp; deal announced 6/24/97. Cable Car (CC) sells carbonated soft drinks in US and Canada under "Stewart's" brand, including root beer, orange, cream. Products also include Java Cola coffee-cola, San Francisco Seltzer and Aspen spring water. CC's brands sold primarily on east and west coasts through distributors. Triarc executive says purchase price "about $31 mil" payable in Triarc stock. CC's 1996 sales total $18 mil, net income $1.3 mil. Sam Simpson, CEO of CC, says over 60% of CC's volume moves through Snapple or Mistic distributors. Triarc executive: "Existing distribution will remain in place." In New York City, CC's products handled by Snapple distributor Mr. Natural recently acquired by Triarc from Quaker Oats with Snapple brand. Triarc executive says Simpson will "continue to run the business out of Denver. He'll report to Mike (Weinstein, CEO of Triarc Beverage Group). We hope Mike's marketing thrust will further invigorate CC." Triarc also owns Royal Crown and Mistic.

Bottlers. Third-tier bottlers, while lauding Triarc's strategy of assembling valuable brand portfolio, express some puzzlement. Observe most 3rd-tier bottlers already sell root beer and orange CSDs -- Cadbury's A&W, Hires, Sunkist, Crush or Monarch's Dad's -- and say it's unlikely they could take on Stewart's for Triarc. Plus. Major bottler: "I imagine Triarc eventually also buys Arizona."

Peltz. Triarc CEO Nelson Peltz: "Acquisitions such as these allow us to continue to build our presence in the premium beverage industry, where we are now the leader. The addition of Stewart's to our fine offering of products makes Triarc a more important partner for the independent bottlers and distributors with whom we work."

Weinstein. Triarc Beverage CEO: "We respect the (franchise) exclusivity of the carbonated soft drink business and of flavor brands. When a bottler carries a competing root beer, we won't try to hone in." Adds: "The strength of Stewart's has been on the east and west coasts." Notes: "We have no plans to move it to White Plains."

Simpson. CC chairman/CEO: "It's the perfect deal for Cable Car. We'll be the small brand group of Triarc. Triarc is where the excitement and action will be in the beverage business for the foreseeable future." Adds: "Over 60% of our distribution is with either Snapple or Mistic distributors."

Bottlers. Major 3rd-tier bottlers: 1) "There could be some manufacturing synergy. Triarc could make the concentrate and have bottlers co-pack." 2) "I can't take it on, it's in conflict with several of my other brands." 3) "Will they position it as a premium brand? If (Stewart's) is priced higher than A&W and Hires, (Triarc) may be hopeful co-existence is possible. There's a question." 4) "Triarc is looking at this as an add-on for their new-age distributors, and it's a good fit." 5) "All the RC guys will have a conflict with A&W, Hires or Dad's." 6) "I'm baffled by this one, it makes no sense." 7) "It sounds like a high price." 8) "It's a good brand and it was for sale."

CC volume/details. In 1996, CC sells 2.5 mil 192-oz cases, up +25% from 1995, according to BD/Maxwell all-channel data. Supermarkets. Stewart's root beer sells 128,309 cases in $2+ mil supermarkets year-to-date through 5/4/97 according to independent data. Brand holds 0.3 share of root beer segment. Company. CC enters beverage business in 1987 with acquisition of Old San Francisco flavored seltzers. In 1996 Stewart's brand accounted for 98% of CC's branded product sales. In SEC filing, CC says for 1996 two customers accounted for 32% of sales: K.O. Lester in Lebanon TN with 14%; and Mid-State Beverage Co in New Brunswick NJ with 18%. CC had 17 employees; does not manufacture own products. Stock. CC stock's price in 1996 ranged from $1.25 to $2.84. At close of business 6/23/97 -- day before sale announced -- CC closed at $4.03; NASDAQ symbol: DRNK.

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