Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

Dr Pepper Snapple Group Inc. (DPS - Analyst Report) recently acquired its bottling company of the west, Dr. Pepper/7-UP based in Reno, Nev. Following the acquisition, Dr Pepper Snapple Group will have business assets as well as the distribution rights of the bottling company’s territory.

Dr. Pepper/7-UP bottling company’s territory includes northern Nevada, northern and western California, and Idaho. The bottler distributes well-known brands like Dr Pepper, Snapple, 7UP, Sunkist soda, A&W and RC Cola, and other DPS-allied brands.  

The acquisition and subsequent integration of the Dr. Pepper/7-UP bottling company into Dr Pepper Snapple Group’s will strengthen Dr Pepper’s U.S operations and improve its geographical coverage and efficiency. As of Dec 31, 2012, Dr Pepper operates 18 manufacturing facilities and around 115 distribution centers and warehouses across North America. The inclusion of the territory and distribution operations of the bottling company will help Dr Pepper Snapple Group to better align its operations with its customers, reduce transportation cost and have greater control over the timing and management of new product launches.

However, the company’s lack of exposure outside the U.S. is concerning. The company mainly operates its business in the U.S., Canada and Mexico, which are experiencing saturation. It thus lacks exposure in the fast growing emerging markets where demand is growing and health consciousness is comparatively less than the western countries. This is a significant competitive disadvantage for Dr Pepper’s versus peers like The Coca-Cola Company (KO - Analyst Report) and PepsiCo, Inc. (PEP - Analyst Report), which are fast expanding exposure outside the U.S.

Dr Pepper Snapple Group Inc. currently carries a Zacks Rank #4 (Sell).

Another company in the sector, which is currently doing well is Coca-Cola Hellenic Bottling Company S.A (CCH - Snapshot Report) with a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%