Dr Pepper Snapple Group has invested $15m in a minority stake in Bai Brands, which has generated explosive growth in multiple retail channels with its 'antioxidant infusion' low-calorie Bai5 beverages.
Mid-calorie soft drinks have the potential to gain ground on traditional full calorie drinks – and could eventually become the new mainstream choice, according to Zenith International.
Dr Pepper Snapple Group says it is battling headwinds against carbonated soft drinks – particularly diets – something it expects to see continue into 2015. But it remains upbeat about a ‘strong performance’ in 2014.
Will Pepsi True & Coca-Cola Life revitalize the cola market, or are today’s more demanding and sophisticated consumers looking for more than refreshment and ‘no-artificial’ claims from their beverage calories these days?
Keurig Green Mountain and Dr Pepper Snapple Group (DPS) have struck a deal to develop products for the hotly-anticipated Keurig Cold at-home beverage system, following Keurig’s 2014 deal to work with Coca-Cola on the Cold platform.
Executives at the top carbonated soft drink firms are more positive on the future of the category in the US, but the decline of diet drinks shows no sign of abating, according to an analyst from Cowen and Company.
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Bai Brands CEO Ben Weiss says the Dr Pepper allied brand will hit $50m in sales this year and puts this down to a focus on ‘distribution at the expense of brand equity’ during the early ‘basement’ years.
As one analyst suggests that Dr Pepper Snapple Group has hit a ‘home run’ with Mexican mineral water brand Penafiel, the company says it hopes to increase distribution in the US.
Bai Brands founder Ben Weiss says he believes carbonated soft drinks are ‘dying on the vine and need true variety’ as his firm aims to disrupt the category with sparkling line Bai Bubbles.
Moody’s Investor Service believes Coke is better placed than PepsiCo and Dr Pepper Snapple to ride out the US diet soda storm, due to its strong position in international markets where the category is growing.
ANALYSTS WARN DR PEPPER NEEDS 'CATALYSTS' TO DRIVE TOP-LINE GROWTH
Dr Pepper Snapple CEO Larry Young says he loves the young entrepreneurs who run his allied brands – these include Bai 5 and Vita Coco – but says the buyout prices startups demand are ‘ridiculous’.
Financial analyst Bonnie Herzog says she believes 2015 will be a ‘critical tipping point year’ for carbonated soft drinks brands to prove their ability to cut costs, boost marketing spend and efficacy to reverse negative trends.
Coke's ‘savvy’ pricing strategy has helped it take share from Dr Pepper Snapple and PepsiCo in 2014 to date but analysts warn the policy may not be in the brand’s best long-term interest amidst worry about CSDs.
'WE'LL NEVER GIVE UP ON HAWAIIAN PUNCH' - CEO LARRY YOUNG ROARS
Dr Pepper Snapple (DPS) CEO Larry Young insists his firm will ‘never give up’ on Hawaiian Punch after one financial analyst suggested that the brand might be a busted flush.
