History
Roy W. Allen opened a roadside root beer stand in Lodi, California in 1919, using a formula he had purchased from a pharmacist.[5] He soon opened stands in Stockton, and five stands in nearby Sacramento where "tray boys" pioneered drive-in curbside service.
In 1922, Allen partnered with Frank Wright, birthing the A&W brand name.[6] Allen bought Wright out, obtained a trademark, and began selling restaurant franchises - creating one of the early restaurant chains in the United States. Franchise owners could use the A&W name and logo and purchased concentrated root beer syrup from Allen. However, there was no common menu, architecture, or set of procedures, and some chose to sell food as well.
By 1933 there were 170 A&W franchises.[5] During World War II, franchisees struggled with labor shortages and sugar rationing, but after the war the number of A&W outlets tripled, helped in part by the availability of GI loans. The proliferation of the automobile and the mobility it offered also led to growth; by 1950 there were more than 450 A&W Root Beer stands in operation. That year, Allen retired and sold the business to Nebraskan Gene Hurtz, who formed the A&W Root Beer Company.
The first A&W Root Beer outlet in Canada opened in 1956.
By 1960, the number of A&W restaurants swelled to more than 2,000.
In 1963, the company was sold to the J. Hungerford Smith Company, which had produced Allen's concentrate since 1921. Also in 1963, the first overseas A&W restaurant opened in Guam. In 1966, Hungerford was sold to the United Fruit Company, which merged with AMK Corporation in 1970 to form the United Brands Company.[7] In 1971, United Brands formed a wholly owned subsidiary, A&W Distributing Co., to retail its root beer. After test runs in Arizona and California (Phoenix, Tucson and San Diego), the products were distributed nationally, including sugar-free, low-sodium, and caffeine-free versions.
In 1974, A&W introduced "The Great Root Bear", a mascot that served as a goodwill ambassador for the brand. The bear and its associated jingle became the basis of a long-running Canadian advertising campaign. The mascot was so successful that it was eventually adopted by the American A&W chain as well.
A&W Restaurants was formed in the late '70s to manage restaurant franchising. It was bought in 1982 by A. Alfred Taubman.
In 1983, United Brands sold A&W Root Beer to a group of investors led by Castle & Cooke.[8] In 1984, it had an advertising budget of $10 million.[9] In 1986, Hicks & Haas and management bought A&W from the investor group.[10]
A&W Cream Soda and A&W Diet Cream Soda were introduced and distributed nationally in 1986, followed in 1987 by the reformulation of A&W Sugar-Free as Diet A&W. Also in 1986, A&W acquired Squirt. The company went public in 1987 and also acquired Vernors.[10]
In October 1993, A&W Beverages was folded into Cadbury Beverages. It spun off its U.S. beverages business as Dr Pepper Snapple Group in 2008.
In July 2017, A&W Canada reformulated its root beer, dropping high fructose corn syrup and some flavors from the recipe, substituting cane sugar, sarsaparilla root, licorice, birch bark and anise. A&W Canada launched the new formula by declaring Free Root Beer Day, serving free root beer at all locations on July 22, 2017.[11]
In November 2020, Diet A&W was rebranded as A&W Zero Sugar.[12]