Dr. Pepper Snapple Group vs. The Coca Cola Company
Tarleton State University
I hereby certify that this paper constitutes my own product, that where the language of others is set forth, quotation marks so indicate, and that appropriate credit is given where I have used the language, ideas, expressions or writings of others.
Amanda Herring ID #000078948Zip Code 76707
Table of Contents
Table of Contents3
Purpose & Objective5
Statement of Problem7
Implementation & Monitoring17
This paper will discuss the financial differences between the Dr. Pepper Snapple Group and the Coca Cola Company, two drink manufacturing companies. It will take into account all of the financial information for 2010 and 2011 for each company, as well as current trends found for both of the companies. Financial statements for both companies will be included, as well as analysis of both companies’ financial situations. A decision will be made at the end to determine which company is best suited to add to an investment portfolio and an explanation will be given as to why this company has been chosen.
Purpose & Objective
Dr. Pepper Snapple Group and The Coca Cola Company were chosen because of their sizes and product lines are relatively similar. They are both drink manufacturers with a wide array of different drink products under their label. It is hoped that with this research, one of these companies has a better market position than the other so that it can be recommended to the reader as an addition to their investment portfolio.
The world is currently in a crisis like no other when it comes to the state of the global economy, as is the United States economy. There is always a need to analyze the current situation of companies so that investors and company executives know what is going on with the financials and what type of leverage the company currently has, as well as what type of leverage they will have in the future. There is also always a need to compare one’s company to that of similar companies who are competitors in the industry. The purpose of this paper is to compare and contrast Dr. Pepper Snapple Group and The Coca Cola Company, both drink manufacturing companies, so that a decision can be made about which one to invest in. “The Coca Cola Company (NYSE: KO) is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups” (Wikipedia.org) and was “founded and headquartered in Atlanta, Georgia” (Cooper, Ford, & Stephens, 2007). “In 1886, pharmacist John Pemberton created the soft drink Coca-Cola by combining soda water, lime, cinnamon, coca leaves, and Brazilian shrub weeds. The drink was originally sold in Atlanta in Jacob’s Pharmacy for five cents a glass as a soda fountain drink” (Cooper, Ford, & Stephens, 2007). “Today Coca-Cola’s reach spreads far beyond Georgia and even the United States; the company has become one of the world’s most recognizable corporations” and “the Coca-Cola brand is one of the five most recognized symbols” while the company “has nearly 400 brands in over 200 countries” (Cooper, Ford, & Stephens, 2007). The Dr. Pepper Snapple Group (NYSE: DPS) is “an American soft drink company, based in Plano, Texas” that was “spun off from Britain’s Cadbury Schweppes” who “in 2006 and 2007…purchased the Dr Pepper/Seven Up Bottling Group” (Wikipedia.org). They are “the leading producer of flavored beverages in North America and the Caribbean” with their success being “fueled by more than 50 brands that are synonymous with refreshment, fun and flavor” having “6 of the top 10 non-cola soft drinks, and 11 of 14 leading brands are No. 1 in their flavor categories”...