just On Call - Dr Pepper Snapple Group CEO backs Ten despite struggles
DPSG says Dr Pepper Ten needs more time to bed in
Dr Pepper Snapple Group's CEO has defended the underperforming Dr Pepper Ten, saying he expects the low-calorie CSD to end the year with flat or positive growth.
In first-quarter results released yesterday (24 April), declines in Dr Pepper Ten helped push the Dr Pepper brand to a 3% volumes sales fall. An analyst also warned that Ten, released in 2011, remains a “show-me” innovation and has done little to boost DPSG's biggest brand.
However, DPSG president & CEO Larry Young told analysts on a call yesterday that consumers are increasingly seeking out healthy alternatives in the CSD category and will soon latch on to Ten. He said: “You don't go in overnight and change consumption habits, but we are bullish about the prospects for Dr Pepper Ten.”
He said he expects the brand to finish the year “basically flat or a little bit up” in volumes growth.
Meanwhile, DPSG's CFO, Marty Ellen, said Snapple has an “opportunity” to expand into Asian markets on the back of demand for RTD tea.
“RTD is a good category across the world and Snapple fits in there well,” Ellen told analysts. “We would love to have the opportunity to grow internationally.”
Struggling sales for diet soft drinks should see a new wave of innovation break over the category. Tom Vierhile reports....
- How to turn a domestic spirit into a global brand
- Mahou San Miguel - just the Facts
- Whatever happened to binge Britain? - comment
- Britvic's FY Performance by Region - Focus
- A game of two halves for Remy Cointreau - Analysis
- Captain Morgan distillation trial queried by USVI
- Sazerac sues Brown-Forman over Tennessee Fire
- Craft, imports near 50% share in US on-trade
- This week in spirits & wine
- Beam Suntory's Laphroaig Brodir - NPD
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research
- Future growth opportunities for global spirits
- Global Wine Market to 2019 - Market Size, Development, and Forecasts
- Global Beer Market 2015-2019