US C-Stores owners do not believe all-natural sweeteners can reverse flagging soda sales, says one US analyst, who is also advising Dr Pepper to stop investing in its low-calorie TEN platform.
Dr Pepper TEN risks sharing the fate of ‘countless other’ product extensions’ that fail to cut it as independent brands, given declining distribution in the US C-store channel, one analyst warns.
Dr Pepper Snapple (DPS) is extending its TEN soda platform by introducing low calorie versions of five of its top soft drinks brands this month, and insists that Dr Pepper TEN is sustaining strong trial and repeat purchase rates.
Dr Pepper Snapple CEO Larry Young has urged patience on the firm’s new mid-calorie TEN portfolio, as analysts quizzed him on whether the brand was cannibalizing regular Dr Pepper sales, down 2% in Q3 2012.
Dr Pepper Snapple Group's net income fell year-on-year in Q1 2012 with a marked slump in non-carbonate sales, although Dr Pepper TEN drove higher carbonates sales, with the firm hinting at further launches on this platform in 2013.
