just On Call - Dr Pepper Snapple Group to tackle diet declines
Dr Pepper bottler case sales volumes dropped in Q2
Dr Pepper Snapple Group is to tackle declines in sales of diet Dr Pepper with a range of marketing programmes, its CEO has said.
The push will include a tie-in with DPSG's college football sponsorship and other as yet unannounced campaigns, Larry Young told analysts after the release of the soft drinks maker's first-half results today (24 July). Young said that currently “most of the growth is in sugar - diets are what are taking a hit".
He added: “But we have programmes coming through in the second-half of the year that will take that hit on.”
In DPSG's Q2, the firm's carbonated soft drinks portfolio grew bottler case sales (BCS) volumes by 2%. However, Dr Pepper BCS volumes fell by 1%.
“Our issue is diet. Diet is what's taking us down,” Young said, referring to Dr Pepper.
Today was not the first time Young has highlighted poor performance in DPSG's diet portfolio, saying in October that he was “shocked” by the decline. Other US soft drinks manufacturers have also suffered sales drops in the category, including PepsiCo and The Coca-Cola Co.
Meanwhile, Young said that some of the prices being paid for small soft drinks brands are “ridiculous”. Asked if DPSG was looking at acquisitions, Young said the company was always on the hunt for a “good deal”. However, he added: “Some of the multiples have been ridiculous. I love all these young entrepreneurs, but they all want the next Glacéau deal."
Coca-Cola bought vitamin water maker Glacéau in 2007 for US$4.1bn.
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Dr Pepper Snapple Group formed after the company was spun off from its parent Cadbury Schweppes in 2008. It brings together the former Dr Pepper/Seven Up Inc, Snapple Beverage Group, Mott’s LLP and Be...
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