A leading US beverage company
Dr Pepper Snapple Group Inc. (DPS) is the third-largest liquid refreshment beverage maker in the United States. The company owns several nonalcoholic beverage brands across the carbonated soft drink (or CSD) and noncarbonated beverage (or NCB) categories.
Dr Pepper Snapple sells its CSD brands in the United States and Canada. Key brands in this category include Dr Pepper, Canada Dry, 7UP, Squirt, Crush, A&W, Sunkist, Schweppes, and Sun Drop. These brands enjoy dominance in the flavored or noncola CSD market.
Canada Dry, 7UP, A&W, and Sunkist are together termed Dr Pepper Snapple’s Core 4 brands. Canada Dry is a leading ginger ale in the United States and Canada. 7UP is a lemon-lime-flavored drink and a popular noncola CSD in the United States. Sunkist is a leading soda drink available in orange, strawberry, grape, and other fruit flavors. A&W is the number-one root beer in the United States. The company has also introduced lower-calorie versions across its Core 4 brands.
Dr Pepper Snapple is the third-largest CSD maker in the US market, trailing market leaders Coca-Cola and PepsiCo, which collectively hold about 70% of the US CSD market. Investors can have a diversified exposure to these companies through ETFs such as the Consumer Staples Select Sector SPDR Fund (XLP) and the SPDR S&P 500 ETF (SPY).
Noncarbonated beverages manufactured by Dr Pepper Snapple include its ready-to-drink tea, juice, juice drinks, and mixers. The company’s key brands in the United States include Hawaiian Punch, Snapple, Mott’s, and Clamato. Dr Pepper Snapple also manufactures Mott’s applesauce.
In a later part of this series, we’ll discuss the company’s distribution network.