Dr Pepper Snapple Group debuts
Dr Pepper Snapple Group Inc. officially came into existence on May 7 with its demerger from Cadbury Schweppes PLC and a listing on the New York Stock Exchange.
Formerly called Cadbury Schweppes Americas Beverages, the Plano, Texas-based companys portfolio includes carbonated soft drinks, ready-to-drink teas, juices, mixers, waters and other beverages. Brands include Dr Pepper, Snapple, 7UP, Mott's, A&W, Sunkist Soda, Hawaiian Punch, Canada Dry, Schweppes, RC Cola, Diet Rite, Squirt, Penafiel, Yoo-hoo, Rose's, Clamato and Mr & Mrs T mixers. The company had pro forma 2007 revenues of $5.7 billion.
Larry Young, president/CEO, said in a Wall Street Journal interview he plans a few new launches, further building of the Snapple brand and repayment of debt. One soon-to-be-launched product is Venom energy drink.
"Our CSD portfolio continues to grow and our non-carbonated brands have regained momentum. We've also made strategic bottling and distributing acquisitions that are improving our capabilities and protecting the equity of our brands. The success we're realizing with today's listing has been a lengthy process and we're looking forward to solely focusing on the beverage business," said Young.
The DPS business was formed in 2003 by bringing together Cadbury Schweppes' four separate North American beverage business units: Dr Pepper/Seven Up, Mott's, Snapple Beverage Group and Bebidas Mexico. This move brought more than 50 brands under a common vision, business strategy and management structure.
In 2006, the company acquired and began integrating three major independent bottling companies (Dr Pepper/Seven Up Bottling Group, All-American Bottling Company and Seven Up Bottling Company of San Francisco). The following year, the company acquired Southeast-Atlantic Beverage Corp., then the second largest independent bottling company in the U.S.
This integration, along with the other bottler and distributor acquisitions completed since 2006, established a broad-scale manufacturing and distribution footprint that reaches approximately two-thirds of the U.S. population.