Higher prices kept soft drinks revenues afloat at Dr Pepper Snapple (DPSG) in its the second quarter, as the group suffered volume declines across its portfolio.

Net sales crept up by 1% year-on-year to US$1.56bn for the three months to the end of June, DPSG announced today (13 August). Soft drinks volumes fell by 4% for both the quarter and first half, due to 3% and 8% declines in CSD and non-CSDs respectively in the three-month period.

The group, which was spun off and floated by Cadbury Schweppes in May, also saw operating income drop by 4% for the first half of 2008, partially due to the loss of its distribution deal for Glaceau products.

President and CEO Larry Young said: "It's no secret that the beverage industry continues to face significant headwinds. Higher prices at the gas pump and at retailers across the country have impacted our consumers and their shopping habits."

DPSG's core CSD brands - 7UP, Sunkist, A&W and Canada Dry - reported a combined 5% drop in second quarter volumes, while the Dr Pepper brand saw volumes dip 1%. 

In non-CSDs, Hawaiian Punch volumes increased low double-digits and Mott's was up 4%, but this failed to offset falls for Snapple and a 21% drop for Aguafiel in Mexico.

The group remained confident of turning the situation round, however, predicting net sales growth of between 3% and 5% for the full-year. It also warned that rising fuel bills would add an extra $40m to distribution costs in the second half.