ND1228096

Title: Dr Pepper Snapple Comes Into Own

Description: The soft drink maker has acquired market share despite an overall decline of soda sales.

Page Content:

DALLAS ? Dr Pepper Snapple Group Inc. has found its niche, The Wall Street Journal reports. More than a year has passed since Cadbury PLC separated from the soft drink manufacturer, and Dr Pepper Snapple has gained market share even though soda sales have dropped overall.��

As an independent company, Dr Pepper Snapple signed a distribution contract with PepsiCo Inc. this month. The company also launched new products, such as Dr Pepper Cherry, and increased marketing efforts even in a recession.

?Previously much of our profits were shipped across the pond to help a candy outlet that was based there,? said CEO Larry Young.

The company turned its attention to boosting ad spending, such as re-introducing promotions for Canada Dry for the first time in nearly 10 years this year. Jim Trebilcock, head of marketing, said that drove higher volumes for Canada Dry in 2009.

Its market share increases have been tied to the continued popularity of its flavored carbonated beverages, like its flagship Dr Pepper, which have not been as affected by softening soda sales.

?Their volumes look very good compared to the rest of the industry,? said Esther Kwon, an analyst at Standard & Poor?s. ?The flavored drinks haven?t been declining as much.?

Content Subject: Operations

Formatted Article Date: December 28, 2009

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