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.”