Dr Pepper Snapple: America’s third-largest soda maker


Dec. 23 2014, Published 3:44 p.m. ET

Company overview

Dr Pepper Snapple Group Inc. (DPS) is a leading producer of nonalcoholic beverages in North America and the Caribbean. The company sells more than 50 brands, including its flagship brands Dr Pepper and Snapple. Dr Pepper Snapple’s product portfolio includes carbonated soft drinks (or CSDs), juices, teas, mixers, waters, and other premium beverages.

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Evolution of Dr Pepper Snapple

Dr Pepper Snapple was formed in 2008 with the spinoff of Cadbury Schweppes Americas Beverages (or CSAB) from Cadbury Schweppes Plc. Formed in 2003, Cadbury Schweppes Americas Beverages combined Cadbury Schweppes’ four North American beverage businesses, namely Dr Pepper/Seven Up, Inc., Snapple Beverage Corp., Mott’s LLP, and Bebidas Mexico, bringing more than 50 leading brands under its portfolio.

The company’s flagship brand, Dr Pepper, a nonalcoholic beverage with a unique blend of 23 flavors, was created in 1885 by a pharmacist named Charles Alderton.

Competitive scenario

In an industry highly dominated by The Coca-Cola Company (KO) and PepsiCo Inc. (PEP), Dr Pepper Snapple has rapidly emerged as the third-largest soft drink maker in the United States. In addition to the two behemoths, the company also competes with Nestlé S.A., Kraft Foods Group Inc. (KRFT), Campbell Soup Company (CPB), Monster Beverage Corporation (MNST), and Cott Corporation (COT).

Instead of having exposure to only one company, you can diversify your holdings through ETFs. For instance, the Consumer Staples Select Sector SPDR Fund (XLP) has holdings in beverage companies such as Dr Pepper Snapple, PepsiCo, and Coca-Cola.

In this series on Dr Pepper Snapple, we’ll discuss the company’s products, growth strategy, distribution strategy, recent performance, and future prospects.


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