Yesterday, Dr Pepper Snapple Group reported its results for the first three months of 2017. The company saw its sales rise slightly in the first quarter, although profits were hit by the US$1.7bn purchase in November of Bai Brands. Here's a breakdown of DPSG's sales on a by-reporting-segment basis.

Dr Pepper Snapple Group First-Quarter 2017 - Net Sales by Segment

Source: Company results

Bottler Case Sales

  • Overall volumes +1%: CSDs +1%, NCBs -2% 

DPSG said its group volumes came in flat in the US and Canada in the quarter, while Mexico and the Caribbean enjoyed a 3% increase.

Within the CSD category, the soft drinks firm said brand Dr Pepper rose 1%, thanks to the fountain foodservice business. Continued thirst for ginger ale and sparkling water helped boost Canada Dry volumes by 5% while Schweppes saw an 8% rise. 

Penafiel increased volumes by 5% and Squirt inched up 1%. Increases were partially offset by 2% declines for both A&W and 7UP. In the US, 7UP saw "slight growth", although the brand's performance was over-shadowed by struggles in the Caribbean. The firm's other CSDs were down 1%, while fountain foodservice saw a 4% volumes lift in the quarter.

In NCBs, Snapple volumes fell 6%, due to the timing of promotional activity. Mott's dropped 2% as gains for sauce were diminished by declines in juice. Bai shot up 80% on last year's acquisition, with distribution for the Bai portfolio increasing by 26% in the quarter. The group's allied brands portfolio, which no longer include Bai, enjoyed a 33% rise as Bodyarmor, Core and Fiji boosted distribution. DPSG also highlighted innovation for Bodyarmor. Clamato's volumes came in flat while the company's other NCBs dropped 9%, led by Hawaiian Punch.

Beverage Concentrates

  • Sales +2%, driven by concentrate price increases

Packaged Beverages 

  • Sales +2%, thanks to favourable product and price mix, driven by allied brands and growth from the Bai acquisition

Latin America Beverages 

  • Sales +6% on a 3% rise in sales volumes
     

Expert analysis

Dr Pepper Snapple Group Inc in Soft Drinks (USA)

Dr Pepper Snapple Group Inc in Soft Drinks (USA)

Dr Pepper Snapple Group’s strategy consists of investing in its existing core brands through greater consumer awareness, improved distribution and increased promotional activity. While the company’s c...read more