Dr Pepper Case Study

Topics: Coca-Cola, Energy drink, PepsiCo Pages: 16 (5121 words) Published: March 31, 2012
1.0 Company background
1.1 Overview 
From the invention of the first soft drink more than 200 years ago to some of the industry's most beloved beverage brands, Dr Pepper Snapple Group (DPS) has a proud legacy of innovation, bold and distinct flavors, and entrepreneurial spirit.

On May 7, 2008, DPS became a stand-alone, publicly-traded company on the New York Stock Exchange as the result of a spin-off by Cadbury, plc which held the Cadbury Schweppes Americas Beverages business group of entities.

One of North America's leading refreshment beverage companies, DPS markets more than 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages. The company's strategy, brands and people have made it a strong, sustainable and profitable business.

The company's integrated business model enables the company to manage the entire value chain from innovation to the store shelf.

1.2 History 
The Company now known as DPS has evolved from a combination of discovery, invention and collaboration. This rich history includes the very birth of the soft drink in 1783, when Jean Jacob Schweppe perfected the process for carbonating water and created the world's first carbonated mineral water.

Dr Pepper and Snapple, the flagship brands of DPS, have origins that share Schweppe's entrepreneurial spirit. Charles Alderton, a young pharmacist in Waco, Texas, invented Dr Pepper in 1885. It was served at the drug store where Alderton worked and the first Dr Pepper fans asked for a "Waco." The oldest soft drink in the United States, it was later named Dr Pepper, according to legend, after Dr. Charles Pepper, a friend of the drug store owner.

Nearly 100 years later, three New York-area health food storeowners created a unique apple soda they named Snapple. They began selling the original Snapple in health clubs in 1973. Throughout the 1970s, the company that owned Snapple was known as The Unadulterated Food Corporation, later becoming Snapple Beverage Corp.

1.3 Growth and Expansion 
Cadbury Schweppes was formed in 1969 with the merger of Cadbury and Schweppes, and over the ensuing three decades the company amassed the third largest share of the North American beverage market through a series of strategic acquisitions.

In 1982, Cadbury Schweppes acquired the Duffy-Mott Company (later known as Mott's), one of the largest apple juice processors in the world. Through the rest of the 1980s, the company added Canada Dry, Sunkist Soda, Crush and Sun Drop.

A&W Brands, which included the signature root beer and cream soda, as well as Squirt and Vernors, joined the portfolio in 1993.

In 1995, Cadbury Schweppes purchased Dr Pepper/Seven Up, Inc. The acquisition brought Dr Pepper and 7UP, along with IBC Root Beer and the Welch's soft drink line, into the Cadbury Schweppes family.

In 2000, Cadbury Schweppes acquired Snapple Beverage Group, which included the namesake brand as well as RC Cola, Diet Rite and Stewart's, among others.

In 2003, the four North American beverage companies under Cadbury Schweppes - Dr Pepper/Seven Up, Inc., Snapple Beverage Corp., Mott's, and Bebidas Mexico - were unified under a common vision, business strategy and management structure to become Cadbury Schweppes Americas Beverages.

The company established its own bottling and distribution network in 2006, when it acquired full ownership of Dr Pepper/Seven Up Bottling Group, the largest independent bottler in the U.S. Subsequently, it acquired several other major independent bottling and distributing businesses, including All-American Bottling Co., 7UP Bottling Co. of San Francisco, and Southeast-Atlantic Beverage Corp., among others. Adding to its finished goods manufacturing footprint for distribution of juices, teas, mixers and apple sauce, the bottler acquisitions have given DPS control of nearly half of its overall volume and direct access to a substantial majority of the U.S. population 1.4 The Organization...
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