Dr Pepper Snapple Group
) recently announced that from 2013 onward its consumers can get
calorie information when they purchase from its vending machines in
Chicago and San Antonio. The installation of the vending machines,
which will display calorie count, is a part of the Calorie Count
Vending Program. Following its launch in these two cities, the
program will eventually be extended to different parts of the
nation. Previously, the companies had to provide calorie labels on
every beverage product, so that the consumers could make a
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Dr Pepper Snapple Group offers several options in low calorie
drinks, like Diet Dr Pepper and Diet Snapple brands. Its latest
product innovation includes Dr Pepper TEN, which contains only 10
calories per serving.
Low calorie products have a huge demand in the market with the
growing number of health conscious consumers. Given the rise in
lifestyle diseases, people are more concerned about the nutritional
value of packaged food. Introduction of calorie count vending
machines will allow consumers to make a conscious dietary choice,
as they can enjoy the beverages and at the same time be aware of
the number of calories consumed.
Most food and beverage companies acknowledge that they need to
increase the health quotient of their products in order to
accommodate the consumer shift toward healthier lifestyle. One of
Dr Pepper's peers,
The Coca-Cola Company
) is also installing calorie count vending machines in Chicago and
Overall, we are encouraged by Dr Pepper's strong position in the
flavored carbonated soft drinks market and wide range of product
portfolio. Though commodity cost pressures are expected to subside
in the near term, the company's weak volume growth and lack of
exposure outside the U.S. keep us on the sidelines.
We currently have 'Neutral' recommendation on Dr Pepper in the long
term. The stock carries a Zacks #2 Rank (a short-term 'Buy'