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Dr Pepper Snapple Essay

5570 words - 23 pages

1.0 THE HISTORY, DEVELOPMENT, AND GROWTH OF THE COMPANY OVER TIME.

1.1 THE DR PEPPER SNAPPLE STORY

The original Dr Pepper soft drink was invented in 1885 by a young pharmacist named Charles Alderton. At the time, Alderton was working at Morrison’s Old Corner Drug Store in Waco Texas, which served carbonated soft drinks from a soda fountain. Using that resource, Alderton began to experiment with his own recipes and soon discovered that one particular drink, referred to as “the Waco,” was gaining popularity among his customers. As demand grew, Alderton and Morrison brought in a third partner to help with the manufacture and bottling of the soft drink.The partner was Robert S Lazenby, ...view middle of the document...

Cadbury finally purchased Dr Pepper/Seven Up, Inc in 1995, in and acquisition that brought Dr Pepper, 7UP, IBC Root Beer and the Welch’s soft drink line into the company portfolio.

In 2000, Cadbury Schweppes acquired the Snapple Beverage Group (Snapple). Snapple had previously been part of a failed acquisition by Quaker in 1994. The acquisition had been intended to help Quaker strengthen its beverage division, which included Gatorade at the time. However, after a failure to successfully integrate the contrasting corporate cultures, Snapple was acquired by Triarc Companies in 1997, an investment company with a history of purchasing struggling assets.It was from Triarc that Cadbury Schweppes ultimately acquired Snapple.

Three years after the acquisition of Snapple, Cadbury Schweppes combined its four North American beverage companies—Dr Pepper/Seven Up, Snapple, Mott’s, and Bebidas Mexico into Cadbury Schweppes Americas Beverages (CSAB). By 2006, CSAB had developed a common vision, business strategy and management structure, as well as establishing its own bottling and distribution network. Finally in May 2008, under the direction of Larry Young, CSAB officially spun-off from Cadbury’s confectionary manufacturing division and became known as Dr Pepper/Snapple Group, Inc (NYSE=DPS).

Today, DPS manufactures, markets, and distributes over 50 brands of carbonated soft drinks, juices, mixers, teas, and other beverages. In addition to Dr Pepper and Snapple brand drinks, DPS products include Mott’s juices, 7UP, A&W, RC Cola, Squirt, Sunkist soda, Canada Dry, Schweppes, Hawaiian Punch, Yoo-hoo, and other well-known beverages.It has market share of over 40 percent in the non-cola carbonated soft drink category.

1.2 THE COMPANY
Dr Pepper Snapple Group, Inc. (DPS), incorporated on October 24, 2007, is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks and mixers. The Company operates in three segments: Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company primarily serves two groups of customers: bottlers and distributors and retailers. As of December 31, 2011, it operated 20 manufacturing facilities across the United States and Mexico, excluding its manufacturing facility for its joint venture with Acqua Minerale San Benedetto. Effective March 1, 2013, it acquired Dr. Pepper/7-UP Bottling Co of the West, a producer and wholesaler of bottled soft drinks.
Beverage Concentrates
The Company’s Beverage Concentrates segment is principally a brand ownership business. In this segment the Company manufactures and sells beverage concentrates in the United States and Canada. Most of the brands in this segment are CSD brands. Its brand portfolio includes CSD brands, such as Dr Pepper,...

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