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Story of Delaware Punch
Is More Than A Business Romance
Famous San Antonio-made drink was the result of the inspiration of Thos. E. Lyons/ and the remarkable organizing ability and imagination of his partner, J. C. Rice. The success of these two men and their product has upset all traditions in the soft-drink industry and created an institution with limitless possibilities. Consumption of 172,000,000 bottles in 1923, representing nearly $5,000,000 turnover, expected to double in 1924. Original stockholders have already received 125% on their investment in addition to a 900% stock dividend. Company is less than ten years old, but it has 15 state representatives and more than 600 bottlers; and dealers in 31 states distribute "Delaware Punch."
The story of "Delaware Punch" is the epic of the
soft-drink industry.
Patiently and persistently -working in his laboratory one
day ten years ago, Thos. E. Lyons, practical chemist and pioneer in the
manufacture of soft beverages, surprised himself and his business associate, J.
C. Rice, by suddenly announcing the formula for making "Delaware
Punch".
The discovery came like an inspiration', like a bolt out
of the blue. Lyons somehow intuitively knew he had discovered what he had been
seeking for many years; what he had dreamed about and what he believed must
eventually come to pass. Naturally he wanted to be confirmed in these
opinions. So clearly had he visualized his discovery that he was able to
picture himself receiving countless telegrams and rush orders for his imaginary
beverage that later was to be known as "Delaware Punch".
When Thos. E. Lyons discovered the formula for Delaware
Punch he
instinctively knew he had succeeded in making a soft drink
unlike anything else on the market, one more palatable, that contained more
body, piquancy, taste, flavor, thirst-quenching qualities and survival value
than anything known to him or the trade. Mr. Lyons had grown up in the
soft-drink industry and was familiar with the hundreds of imitations that come
and go with the season; and with the memory of these hundreds of annual
failures fresh in his mind no one knew better than he that trying to put a new
beverage on the market was an extra hazardous undertaking.
Glowing with the satisfaction of having actually created
something, Lyons called his partner. J. C. Rice, and requested him to sample a
new drink he had just received "from a manufacturer in Ohio." Rice
pronounced the new beverage a winner and inquired about its origin, and Lyons
was compelled to let him in on the secret.
Now for a name for this wonderful drink! What should it be? Even with limited capital Lyons and Rice
knew or thought they knew they had' a fortune within their grasp in this new
formula, so a suitable and expressive name must be found at once and
arrangements made to develop a market.
The partners decided that each one complete a
list of names from which the golden words were to be selected. As Delaware
Punch is a fruit beverage with all the essentials of the grape from which it
gets it name, it was logical that the word "Delaware" should suggest
itself. And, as prohibition was more
or less in the air with every prospect of soon becoming a reality it was agreed
that some word suggestive of "kick" or "punch" was
necessary to complete the name—and lo! before Lyons and Rice realized it they
had christened their drink "Delaware Punch," the decision
being unanimous.

Manufacturing plant and executive offices of the Delaware Punch Company of America, San Antonio, the most successful institution of its kind in the world, and. with one exception, the largest. During 1923 more than 172,000,000 bottles of "Delaware Punch" were consumed in the 31 states embraced in the company's trade territory, soon to be extended to include the remaining 17 states and several foreign countries. In dollars and cents this large volume of distribution represents approximately $5,000,000, each bottle bearing the San Antonio imprint.
As indicating the remarkable growth and popularity of "Delaware Punch", but without any intention of making a comparison, it might be stated that in five years this beverage attained a larger sale than the other best known soft drink attained during the first eighteen years it was on the market
Next to
discovering the formula for Delaware Punch the next master stroke on the part
of Lyons and Rice was in their selection of a name for their product. In this they displayed not only the rarest
kind of business judgment, but an insight into human nature and knowledge of
advertising and a sense of values not to be learned in the textbooks.
"Delaware
Punch!" How could anybody ever forget that name once it has found
lodgement in the subconscious mind? It is full of meaning and at the same time
implies the most powerful suggestive forces and qualities. Small wonder that
172,000,000 bottles of this drink were sold last year,
With their formula
known only to themselves and with a name that has since found its way into the
dictionaries as part of our language, Lyons and Rice started out to develop a
market for their product. They first
called on a San Antonio druggist, who, after tasting the new drink agreed to
place it on sale at his fountain. Other
drink emporiums fell in line and then there came a day when San Antonio was to
have a big election when all the saloons would be forced to close for the day.
Here was the chance ofa life-time and Lyons and Rice did not overlook it. Several thousand complimentary tickets good
for a glass of Delaware Punch were given away, and when election day came the
drink establishments were literally swamped with ticket holders all anxious to
try Delaware Punch. While these tickets were later redeemed by Lyon and Rice at
a cost of several hundred dollars, the experiment absolutely "made"
Delaware Punch and put it on the map in a beverage sense. The day following
the election orders were received from dozens of San Antonio soft drink
establishments showing that Delaware Punch was and still is a 100% repeater.
Within a week after this experiment Delaware Punch was known to every man,
woman and child in San Antonio, and the modest little plant of Lyons and Rice
was working overtime to supply the demand. The local market was developed as
intensively as possible. It was worked until the saturation point was reached.
Every cold drink dealer in San Antonio was a booster.
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One of the Laboratories of
the Delaware Punch Company of America, where daily tests are made and
accurate records kept to insure one unvarying standard of the original
formula. These laboratories are in charge of Dr. E.H. Golaz. B.A., B.S.. and
Former Collaborating Chemist of the United Slates Department of Agriculture,
and ex-Director of the State Food and Drug Department for the State of Texas;
member of the American Chemical Society, and a recognized authority on food
and beverage chemistry and analysis. Through the Extension Service of these laboratories every Delaware Punch bottler and sold in California or in San Antonio. Manufactured under sterile conditions it will not deteriorate under any conditions, climatic or otherwise.dealer is enabled to maintain uniform standards of flavor, taste and quality, all these being the same whether the drink is |

THOS. E. LYONS.
President of the Delaware Punch Company of America, and the discoverer of the second most famous beverage formula in the history of the soft-drink industry. The discovery of the "Delaware Punch" formula was not an accident, neither was it a hit-or-miss affair. If anything it was an inspiration, the result of several years experimenting trying to concoct a palatable beverage that would combine mental satisfaction with physical gratification.

J. C. RICE.
Secretary-Treasurer and Co-founder of the Delaware Punch Company of America, whose imagination combined with remarkable sales and organizing ability has been responsible for making "Delaware Punch” a national beverage.
Next to the discovery of Delaware Punch the next most important stroke of business sagacity on the part of Thos. E. Lyons and his associate, J. C. Rice, was naming their product. Their selection proved to be a master stroke, one that could not be improved upon. The first part of the name immediately suggests the delicious flavor of the grape for which it is named; and "Punch” supplies the mental and psychological stimulant to which we all favorably react. Had Lyons and Rice ransacked their brains indefinitely they could not have hit on a name more easily remembered than "Delaware Punch" one that has stronger suggestive qualities.
Having taken their home city by storm Lyons and Rice began
to radiate to other points, extending their activities to Houston where a
similar campaign was carried on with the same successful results. Soon the entire state of Texas was drinking
Delaware Punch, and in turn came Louisiana, Arkansas, Mississippi, Oklahoma,
Arizona, New Mexico, California and other states, until today this beverage is
bottled and distributed by more than 600 bottlers in 31 states. The company now
has fifteen state representatives covering its trade territory which will soon
be extended to include every state in the Union, Cuba. Mexico and Canada.
In other words, the history of the Delaware Punch Company of America
might be given in tabloid form somewhat in this manner: Ten years ago it started
with only a formula for its capital.
Today its assets and sales mount into the millions; and with one
exception it is the most successful business of its kind known to the soft
drink industry. As a matter of fact it might be said that the business of the
Delaware Punch Company has only started; and it would not be surprising to see
the business quadrupled within the next four or five years. Like every other
manufacturing enterprise to put a new product on the market there was a time
when Lyons and
Rice needed capital to finance their operations. They know what hard sledding means, but they have long since
passed the point where this is true. To the contrary, instead of having to
borrow money they are now heavy lenders of surplus funds and are interested in
many other enterprises besides their own. With a ball-bearing organization from
factory to sales force the company runs largely on its own momentum. In an
advertising sense Delaware Punch is one of the most valuable assets the city
of San Antonio has.
While the Delaware Punch Company of America is a corporation with several stockholders, Thos. E. Lyons and J. C. Rice, the originators of the beverage own the controlling interest and dominate the affairs of the company. Lyons and Rice have been personal friends and business partners for a dozen years and they have been mutually helpful to each other. Of decidedly different temperaments they have made an ideal combination and it would be almost impossible to find two men who mean more to each other in their respective capacities as close personal friends and co-workers in a great business.' Theirs has been a harmonious partnership from the be ginning. They have injected their personalities into their relations with the trade, making the problem of the bottlers and dealers their own personal problem, aiming to work them out to the advantage of all concerned. They have carried this personal element to the extent of leasing a large Texas ranch, equipped with all modern comforts; and every December the 600 Delaware Punch Dealers are invited to San Antonio to participate in a deer hunt.
The ambition of Thos. E. Lyon
and J.C. Rice is to make Delaware Punch known the world over; and when. we
consider the magnitude of the soft-drink industry we get some intimation of
what this will mean. in dollars and cents to the stockholders and to the
bottlers of this drink. The company is now experiencing its greatest
growth.; each year the sales increase
and other states will be added to the company’s trade territory; and within a
few years Delaware Punch will be served wherever soft drinks are known. To
attain this volume of business will be due to natural demand, in fact, the
popularity of Delaware Punch is due to a specific demand. It would not be accurate to say that Lyons
and Rice discovered their formula at the psychological time and were able to
avail themselves of conditions. These
are not the reasons. They owe their
success primarily to the merit of their product, and secondarily, to their veil
rounded organization and their reciprocal dealings with the trade. Financially.
handling Delaware Punch has always been a proposition favoring the bottler
first, because he, in the last analysis, is responsible for repeat orders and
for introducing the product to the retailers and small dealers. It has been the
policy of Lyons and Rice to make every man in their organization, whether he
4s the chief chemist or an obscure truck driver in Nevada a personal solicitor
and booster for Delaware Punch; and every dealer, regardless of where he is
located has felt this personal interest and influence.

Sectional view of bottling and shipping department. Here
"Delaware Punch" is made according to the original formula, bottled
in concentrated form and shipped to bottlers in 600 cities and towns scattered
throughout 31 stales. These dealers in turn bottle the beverage in their own
plants and supply the local trade. When we take into consideration that
"Delaware Punch" has been on the market less than ten years, and that
in 1923 more than 172,000,000 bottles were sold we get some conception of the
phenomenal popularity of this fruit-like beverage. Its success has upset all
traditions of the soft-drink industry and caused the market to be flooded with
a host of unsuccessful imitations, none of which have been able to make any
inroads on the company's expansion. The sales for 1924 are expected to double
1923's volume.
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Another view of the manufacturing department of
"Delaware Punch" that might easily be mistaken for the interior of a
Kentucky Distillery. The long row of barrels would indicate that the greatest
problem of the making of Delaware Punch is not one of demand but one of supply.
With an increasing demand for this product the question of distribution had to
be simplified—and this could only be done by shipping the beverage in
concentrated form—in barrels and bottles.
When we estimate that some 600 bottlers and dealers in 31
states sold nearly $5.000.000 worth of Delaware Punch in 1923, what will be the
financial possibilities of this product when all the soft-drink dealers in the
United States (numbering several hundred thousand), become retailers of this
beverage? This is a probability that must inevitably result within the next
four or five years if we are to judge by the company's present success and
development. Each year witnesses a
fifty per cent increase in sales.