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|===Bottling Group ''(47.78%, 2.71%)'' ===||===Bottling Group ''(47.78%, 2.71%)'' ===|
|+||This division is responsible not only for the manufacture, bottling, and/or distribution of finished beverages managed by DPS but also third party owned brands seeking a distribution platform. As a result of the|
|===Mexico and the Carribbean ''(6.56%, 9.07%)''===||===Mexico and the Carribbean ''(6.56%, 9.07%)''===|
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. The company became publicly traded and independently managed on May 7, 2008 when Cadbury Schweppes (CSG) spun apart its American Beverages division.
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 cheaper drinks such as bottled or tap 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%. The most dramatic manifestation of consumer health concerns regarding soft drinks, though, has been a proposal put forth in the state of New York that would impose an 18% excise tax on all non diet soda sales.
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. 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.
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).
|Net Sales||Similar to gross revenues, net sales measures, in dollar terms, the amount of products that is sold by DPS over a certain time period.||4,369||4,347|
|Underlying Operating Profit||UOP is a measure of income from operations that excludes certain additional accounting expenses that are unique to the beverage industry but not reflective of future firm performance such as the impairment of intangibles.||668||731|
The Beveragte Concentrates division of DPS consists of primarily carbonated soft drink brands such as Dr. Pepper, Canada Dry, 7UP, and A&W Root Beer. In 2008, the fastest growing brand was Canada Dry which saw sales growth of 8% following the launch of Canada Dry Green Tea. Sales of Dr. Pepper remained relatively flat while sales of 7UP declined by 3%. Overall, the Beverages Concentrate is the most profitable division within DPS accounting for less than one-fifth of sales but more than two-thirds of profits.
The Finished Goods division of DPS includes many of the non carbonated, or juice brands managed by Dr. Pepper such as Hawaiian Punch, Mott's, and Snapple. In 2008, the highest performing brand in this divison was Hawaiian Punch who saw double digit increases in sales due to a newly crafted promotional campaign. The worst performing brand turned out to be Snapple which saw sales decline 10% as DPS decided to cut and completely revamp its advertising surrounding this brand during the economic downturn. Overall, while this divsion is neither the largest or most profitable division in DPS it is the fastest growing experiencing a growth rate of 5% in 2008.
This division is responsible not only for the manufacture, bottling, and/or distribution of finished beverages managed by DPS but also third party owned brands seeking a distribution platform. As a result of the