Dr Pepper Is Defying An Otherwise Tough US Carbonated Market

DPS: Dr Pepper Snapple logo
DPS
Dr Pepper Snapple

The U.S. carbonated soft drinks (CSD) market declined for the eleventh consecutive year in 2015, and per capita consumption is down to 154 liters — the lowest since 1985.  However, Dr Pepper Snapple (NYSE:DPS) has a bulk of its volume sales from this market itself, and is still managing growth, and, more than its rival companies. The Coca-Cola Company (NYSE:KO) and PepsiCo (NYSE:PEP) are, in fact,  aggressively diversifying their non-carbonated drinks portfolio to keep up with shifting consumer preferences.

DPS Q&A 16-part 1-1

Dr Pepper has managed more growth in North America compared to its peers, despite a portfolio heavily tilted towards CSDs.  Why the company has managed to grow is also because of its relatively small market share.  Dr Pepper is taking away share from other companies, especially PepsiCo, which has lost share continuously in the last few years, in a mature U.S. CSD market.

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DPS Q&A 16-part 2

Have more questions on Dr Pepper Snapple? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Dr Pepper Snapple

 

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