Canada Dry Ginger Ale Stock Price After the October 1929 Stock Market Crash
In 1890, Canadian pharmacist and chemist, John J. McLaughlin of Enniskillen, Ontario opened a carbonated water plant in Toronto.
McLaughlin was the oldest son of Robert McLaughlin, founder of McLaughlin Carriage and McLaughlin Motor Car. In 1904, McLaughlin created Canada Dry Pale Ginger Ale; three years later the drink was appointed to the Royal Household of the Governor General of Canada, and the label featuring a beaver atop a map of Canada was replaced with the present Crown and shield.
When McLaughlin began shipping his product to New York in 1919, it became so popular that he opened a plant in Manhattan shortly thereafter. After McLaughlin’s death, the company was run briefly by Sam. P. D. Saylor and Associates who bought the business from the McLaughlin family in 1923 and formed Canada Dry Ginger Ale, Inc., a public beverage company.
By October 27, 1929 Canada Dry was trading at $75.875 per share when the first wave of selling on “Black Monday“, October 28, 1929 brought the shares down ($4.25) to close at $71.625 per share on the day. By August 11, 1932, Canada Dry was trading at $13.375 per share and hit a 1932 low of $6.00 per share.
Canada Dry’s popularity as a mixer began during “Prohibition“, when its flavor helped mask the taste of homemade liquor. In the 1930s, Canada Dry expanded worldwide, and from the 1950s onward, the company introduced a larger number of products.
Norton Simon took an interest in the company in 1964, and it merged with Simon’s other holdings, the McCall Corporation and Hunt Foods, to form Norton Simon Inc.
Dr Pepper bought “Canada Dry” from Norton Simon in 1982.
In 1984, Dr Pepper was acquired by Forstmann Little & Company, and Canada Dry was sold to R. J. Reynolds Del Monte Foods unit to pay off acquisition debt.
RJR Nabisco sold its soft drink business to Cadbury Schweppes in 1986.
Today, Canada Dry is owned by Dr Pepper Snapple Group, which spun out of Cadbury Schweppes in 2008.
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