just on Call - CAGNY 2012: Dr Pepper Snapple tips perfect Ten for growth
Dr Pepper Snapple's CEO, Larry Young, told attendees the company is making “good progress” in the US
The CEO of Dr Pepper Snapple Group (DPSG) has emphasised the company's need to focus on its lower-calorie CSD brands and increase per capita consumption in the US.
Speaking at the Consumer Analyst Group New York conference this week, group president and CEO, Larry Young, told attendees the company is making "good progress" in the US, but said there is still "plenty of room and opportunity for growth" there.
"Regular CSD purchase frequency continues to decline with 260m cases lost to other categories since 2007," Young said. "We believe we can recapture a lot of those lost occasions with our Ten platform. And while our flavoured CSDs, premium teas and juices are number one in their categories, household penetration of these brands lags the competition.
"We've been very focused on increasing the ability of our core SKUs in grocery and convenience, but we still have plenty of work ahead of us to achieve at least 90% distribution of these core SKUs," he added.
Young said that increasing the per capita consumption of its flavoured CSDs, premium teas and juice brands remains its "single most important priority".
Analysts Bernstein Research believe DPSG's understanding of the consumer has omproved.
"Besides traditional marketing, DPSG claims to be doing more in-store events to target offers as well as link offers to digital media," the analysts noted. "The innovation pipeline to drive consumer use is also robust. For instance, better packaging, DP10, and health & wellness items like Mott's for Tots should improve per cap penetration."
Young told conference attendees that the company has products in the pipeline that focus on "flavour, variety, functionality, and freshness".
Ray Rowlands of Drinksinfo says progress is surprisingly slow in the soft drinks market's flavour mix, as cola and orange continue to dominate ...
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