May 19, 2013
Dr. Pepper Snapple Group (NYSE: DPS) is the third largest flavored carbonated soft drink company, by annual revenue, in the United States with 24 manufacturing and 200 distribution centers across 13 states.[1] The company became publicly traded and independently managed on May 7, 2008 when Cadbury Schweppes (CSG) spun apart its American Beverages division.[2]
DPS, like other soft drink makers in the United States, is facing a marketplace where demand has seen lukewarm growth as consumers shift towards healthier sports drinks, energy drinks, and cheaper drinks such as bottled or tap water.[3] The most dramatic manifestation of consumer health concerns regarding soft drinks, though, has been a proposal put forth in the state of New York that would impose an 18% excise tax on all non-diet soda sales.[4]
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) - Company Overview
- Business and Financial Metrics
- Business Segments
- Beverage Concentrates[8]
- Packaged Beverages[8]
- Latin America Beverages[8]
- Trends and Forces
- Shift in consumer preferences towards healthier and cheaper drinks will decrease DPS revenue
- Development of a zero calorie sweetener by Coca-Cola Company (KO) and Pepsico (PEP) offers a distinct competitive advantage
- Pending legislative policies aim to institute excise taxes on non-diet drinks, potentially reducing demand
- Concentration of sales in only North America will hurt revenue growth as competitors enter foreign markets
- Competition
- References
