Despite their raging success and a $1.7 billion valuation, the company lost sight of the marketing strategy that had catapulted them to a leading position in the beverage market. Unfortunately, Snapple’s problems went beyond being falsely affiliated with a racist hate group. Positioned as a healthy alternative to soft drinks, the company used clever marketing, homespun consumer relations, and a relatable spokeswoman to become one of the biggest consumer success stories of the 1990s.

Originally founded in Long Island as a regional manufacturer of alternative drinks, Snapple had grown from $13.3 million in revenue in 1988 to $774 million in 1994. That such a rumor existed was a kind of testament to the brand's market dominance. The rumor persisted to the point that Snapple took out ads in California newspapers to declare they had no involvement with the group. The reason? A small “K” appeared on the product label. For months, word had circulated in California's Bay Area that the massively popular iced tea and fruit drink brand was secretly funneling money to the Ku Klux Klan organization. In the trifecta of brand disparagement, a rumor circulated in the early 1970s that “Mikey,” the spokes-kid for Life Cereal, had died after mixing Pop Rocks candy with Coca-Cola to produce a combustible blend that blew up his stomach. In the 1990s, Kentucky Fried Chicken’s publicity department fielded questions about raising eight-legged chickens with no beaks in order to satisfy product demand. In 1985, Procter & Gamble had to refute accusations that their moon and stars logo was somehow representative of Satan worship. For many consumer brands, the ultimate sign of success is being the subject of an urban legend.

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