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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.

 


 


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.

 

 

 

 

 


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.