Dr Pepper Snapple Group paid US$1.7bn for Bai

Dr Pepper Snapple Group paid US$1.7bn for Bai

The CEO of Dr Pepper Snapple Group has outlined plans to relaunch Bai's antioxidant water as the firm looks to further capitalise on the trend for functional drinks. 

Speaking to analysts following the company's year-to-date 2017 results this week, Larry Young said a pack refresh and a new formula is on the cards. "We're relaunching our antioxidant water this quarter complete with a new formula and updated packaging - this will be a 2018 initiative," he said. 

Young also pointed to a "reset" for Bai Bubbles as well as new livery for Bai Superteas. 

"We're going to relaunch some of our innovation," he said. "We're going to pull back on it, focus on the base, get the Bubbles reset. We're redoing our Superteas - the labels."

DPSG saw reported net sales climb 4% in the three months to the end of September, with Bai accounting for "just over" one percentage point of net sales growth. 

However, DPSG revised volumes growth for the brand down - from 40-50% to 40% - for the year. 

Wells Fargo analyst Bonnie Herzong said in a note after the call: "While we share investors' frustration on another deterioration of Bai's volume outlook, we also note that this is still within the previous range."

Bai was one of DPSG's 'allied brands' and in 2015 DPSG paid US$15m for an unspecified minority stake. A year later, DPSG paid $1.7bn for the company and its complete portfolio. In June this year, the company confirmed the departure of Bai Brands CEO & founder Ben Weiss.

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