Dr Pepper Snapple Group ( DPS ) recently
announced an extension of its sponsorship deal with Pittsburgh
Penguins hockey team by another 7 years through July 2020.
Under its multi-year marketing and sponsorship deal with the
popular hockey team, DPS exclusively provides carbonated soft
drinks such as Dr Pepper, Diet Dr Pepper, 7UP, RC Cola as well as
other beverages like teas, bottled water, energy drinks, juices and
juice drinks since 2010 at the CONSOL Energy Center, a leading
entertainment venue in Western Pa.
In addition to continuation of these rights, DPS will receive
certain advertising provisions such as radio broadcast, in-venue
signs and an annual playoff promotion. Alongside, it will also
continue its "Cap Trick" program.
In early March, Dr Pepper entered into a deal to buy back
distribution rights for several of its brands for certain parts of
Asia-Pacific from snack company, Mondelez International,
Inc. ( MDLZ ).
Dr Pepper lacks significant exposure outside the U.S. Dr Pepper
mainly operates within the U.S., Canada and Mexico, which are
experiencing saturation. It thus lacks exposure in the fast
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
versus its peers like The Coca Cola Company ( KO ) and
PepsiCo, Inc. ( PEP ), which are fast
expanding and exploring markets outside the U.S. The Mondelez deal
will help Dr Pepper gain foothold in a growing market and thereby
increase the popularity of its brands outside the U.S.
Dr Pepper carries a Zacks Rank #3 (Hold).DR PEPPER SNAPL (DPS): Free Stock Analysis
ReportCOCA COLA CO (KO): Free Stock Analysis ReportMONDELEZ INTL (MDLZ): Free Stock Analysis
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