Dr Pepper is one of the world’s most famous soft drink brands, and its history is full of interesting twists and corporate mergers. Originally known as Dr Pepper Snapple Group, the company is now part of the Keurig Dr Pepper group, a globally recognized beverage company headquartered in Texas.
Dr Pepper Snapple Group originated when Cadbury Schweppes Americas Beverages was spun off from Cadbury Schweppes in May 2008. This event marked the beginning of Dr Pepper Snapple Group, and the company began trading on the New York Stock Exchange (NYSE) under the ticker “DPS”. However, on July 9, 2018, Keurig Green Mountain acquired Dr Pepper Snapple Group, and the following day, the combined company began trading on the NYSE as “KDP”, now known as Keurig Dr Pepper.
However, the company’s roots extend further back. In 1998, Dr Pepper Snapple Group’s predecessor acquired Beverage America and Select Beverages from the Carlyle Group. In 2000, Triarc Companies sold Snapple, Mistic, and Stewart’s to Cadbury Schweppes for $1.45 billion. In the same year, Cadbury Schweppes also acquired Royal Crown Cola from Triarc.
In the mid-2000s, Cadbury Schweppes made significant acquisitions by purchasing Dr Pepper/Seven Up Bottling Group and several other regional bottling plants. These acquisitions allowed Dr Pepper Snapple Group to bottle many of its own beverages and respond to the decisions of Pepsi and Coca-Cola bottlers, who had ceased distributing Dr Pepper and Snapple products.
In 2008, Dr Pepper Snapple Group acquired a minority stake in Big Red, Inc., which manufactures Big Red, NuGrape, Nesbitt’s, and other “flavor drinks”. In 2014, the company announced it had achieved its goal of reducing the amount of polyethylene terephthalate used in its plastic bottles. Between 2007 and 2014, Dr Pepper Snapple reduced its use of PET material by over 27 million kilograms.
In November 2016, Dr Pepper Snapple announced its plans to acquire Bai Brands for $1.7 billion in cash. The company had previously acquired a minority stake in Bai Brands for $15 million in 2015. In January 2018, Keurig Green Mountain announced its acquisition of Dr Pepper Snapple Group for $18.7 billion. The combined company was named Keurig Dr Pepper and continued public trading on the New York Stock Exchange. Dr Pepper Snapple Group shareholders would own 13% of the combined company, while Keurig’s shareholder and Cadbury’s current owner Mondelez International would own 13–14%, and JAB Holdings would own the remaining majority stakes. The transaction and merger were completed in July 2018, at which point Dr Pepper Snapple Group CEO Larry Young retired and joined the Keurig Dr Pepper board of directors.
Dr Pepper has maintained its popularity and position in the soft drink market for over a century, and it continues to grow as part of the Keurig Dr Pepper group. This long history and ability to adapt to changing markets make Dr Pepper a unique and fascinating brand.
And take a look:
https://x.com/carbonfinancex/status/1815487200886202723
Investor’s Reflection
Keurig Dr Pepper is one of the leading beverage companies, with a strong position in the single-serve coffee and flavored soft drink markets. The company has a solid history of sales and market share growth. “Favorable demographics”, strong brands, and a unique distribution network will continue to support growth. The stock price has suffered from issues in the Keurig coffee division, as, for example, at-home coffee consumption levels off with people returning to work, and price increases affect demand. These challenges are expected to be temporary, and Keurig has the opportunity to capitalize on demand thanks to its extensive installed base of machines. The company is considered an attractive investment, as it is perceived to be undervalued.
Regarding threats, apologies Ilkka, for quoting so directly (message from last year):
Basic threats, of course, include fierce competition, trends, raw material prices, inflation, regulations, and environmental standards, but there’s nothing particularly new or special about these. 
2023:
From Q2:
The company’s net sales grew by 3.4% due to price and volume improvements, and earnings per share (EPS) increased by 7% year-over-year. The U.S. soft drink segment grew by 3.3%, driven by brands like Dr Pepper and Canada Dry, but net sales in the coffee segment decreased by 2.1% due to pricing. Internationally, double-digit growth was seen, led by Canada and Mexico. Strategically, Keurig Dr Pepper focuses on brand development and expanding into new market segments. The company also reported strong cash flow and balanced capital allocation. For 2024, mid-single-digit net sales growth and single-digit EPS growth are expected.
