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Dr Pepper Snapple Group (DPS) |
| Revision as of 10:53, January 17, 2009 (edit) FanZhou - Sr. Director (Talk | contribs) (→Company Overview) ← Previous diff |
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| [[Image:Dr_Pepper.png|left]] | [[Image:Dr_Pepper.png|left]] | ||
| - | Dr. Pepper Snapple Group '''(NYSE: DPS)''' is the largest flavored carbonated soft drink company in the United States with 24 manufacturing and 200 distribution centers across 13 states.<ref>[http://www.drpeppersnapplegroup.com/about/bottling-distribution/ Company Website: Operations]</ref> The company became publicly traded and independently run on May 7, 2008 when [[Cadbury Schweppes (CSG)]] spun apart its American Beverages division. | + | Dr. Pepper Snapple Group '''(NYSE: DPS)''' is the largest flavored carbonated soft drink company in the United States with 24 manufacturing and 200 distribution centers across 13 states.<ref>[http://www.drpeppersnapplegroup.com/about/bottling-distribution/ Company Website: Operations]</ref> The company became publicly traded and independently managed on May 7, 2008 when [[Cadbury Schweppes (CSG)]] spun apart its American Beverages division.<ref name=Motely>[http://www.fool.com/investing/general/2008/05/07/dr-pepper-fizzles-away-from-cadbury.aspx The Motley Fool 5/7/2008: "Dr Pepper Fizzles Away From Cadbury"]</ref> |
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| + | DPS, like other soft drink makers in the United States, is facing a marketplace where demand has seen lukewarm growth since 2002 as consumers shift towards healthier sports drinks, energy drinks, and/or bottled water. Along these lines, in the third quarter of 2008 consumption of soft drinks declined by 3% while sales of water filters increased by 16%.<ref>[http://www.nytimes.com/2008/10/15/business/15pepsi.html?_r=1&scp=9&sq=Soft%20Drink%20Demand&st=cse New York Times 10/14/2008: "Tap Water's Popularity Forcing Pepsi to Cut Jobs]</ref> Other firms, such as [[Pepsico (PEP)]] and [[Coca-Cola Company (KO)]], have been able to mitigate the effects of a declining US market through expansion of their sales abroad in areas such as Asia where demand is still growing.<ref>[http://www.forbes.com/markets/2008/09/03/coca-cola-huiyuan-markets-equity-cx_vk_0903markets02.html Forbes 9/3/08: "Coca Cola Sees Juicy Prospects in China"]</ref> Due to the lack sales outside of North America for DPS, declining demand in the United States, its largest market, will slow revenue growth and decrease the competitive advantage of DPS as its competitors solidify market share abroad. | ||
| ==Company Overview== | ==Company Overview== | ||
Revision as of 11:17, January 17, 2009
Dr. Pepper Snapple Group (NYSE: DPS) is the largest flavored carbonated soft drink company in the United States with 24 manufacturing and 200 distribution centers across 13 states.[1] The company became publicly traded and independently managed on May 7, 2008 when Cadbury Schweppes (CSG) spun apart its American Beverages division.[2]
DPS, like other soft drink makers in the United States, is facing a marketplace where demand has seen lukewarm growth since 2002 as consumers shift towards healthier sports drinks, energy drinks, and/or bottled water. Along these lines, in the third quarter of 2008 consumption of soft drinks declined by 3% while sales of water filters increased by 16%.[3] Other firms, such as Pepsico (PEP) and Coca-Cola Company (KO), have been able to mitigate the effects of a declining US market through expansion of their sales abroad in areas such as Asia where demand is still growing.[4] Due to the lack sales outside of North America for DPS, declining demand in the United States, its largest market, will slow revenue growth and decrease the competitive advantage of DPS as its competitors solidify market share abroad.
Company Overview
DPS is organized into four main segments that are delineated primarily along the lines of the products that each segment manufactures and sells. In order to measure the performance of each segment Dr. Pepper uses two main metrics: Net sales and Underlying Operating Profit (UOP).
| Definition | 2008 | 2007 | |
|---|---|---|---|
| Net Sales | adgadghahasdgha | 4939 | 4879 |
| Underlying Operating Profit | qadfhasdhasdfad | 803 | 835 |
Beverages Concentrates
Finished Goods
Bottling Group
Mexico and the Carribbean
Trends and Forces
Shift in consumer preferences towards healthier drinks could reduce revenue
Rising cost of commodities and raw materials will reduce operating margins
Concentration of sales in only North America may hurt revenue growth as competitors enter foreign markets
Competitive Analysis
References
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