Quaker Oats to Focus on Cereal and Sports Drinks

At his first Quaker shareholders meeting, new chief executive Bob Morrison promised a leaner, more nimble company that would focus on cereals and its top-selling Gatorade sport drinks line.

Morrison, a former Kraft executive who came to Quaker in October, blamed the company's recent foundering on its ill-timed acquisition of the Snapple beverage line, which it sold last year at a $1.4 billion loss.

"Quite frankly, since the Snapple episode, I think we all have got something to prove, to ourselves and to others, and we're ready for the challenge,'' Morrison said.

Morrison denied rumors that the Chicago-based company has become an acquisition target because of its Gatorade line. Quaker has not been contacted by any parties in the six months since he took the helm, he said.

But he did not rule out the company's eventual sale to a larger player - if the price is right.

The Gatorade line, which has 82% of the sports drink market, continues to drive the company's bottom line. Morrison said the company is about to introduce "Midnight Thunder" blackberry Gatorade and the purple "Riptide Rush" to the Frost line.

Quaker makes foods and beverages including Quaker hot and cold cereals, snacks, Rice-A-Roni side dishes, and Gatorade sports drink.

Edited by Pam Ahlberg