Dr Pepper Snapple Group
) recently announced that five of its soda brands - 7UP, A&W
Root Beer, Sunkist Orange Soda, Canada Dry Ginger Ale and RC Cola
- will now be available in 10-calorie versions. The new versions
of the popular soda use both caloric and non caloric sweeteners
and contain only 10 calories per 12 oz servings.
DR PEPPER SNAPL (DPS): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
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A peer of
The Coco -Cola Company
), Dr Pepper Snapple Group already offers several options in low
calorie drinks, like Diet Dr Pepper and Diet Snapple brands. Its
previous "only 10 calories per serving" product innovation, Dr
Pepper TEN, has been extremely successful among consumers.
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 low calorie
drinks will allow consumers to make a conscious dietary choice,
where 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.
Overall, we are encouraged by Dr Pepper's strong position in the
flavored carbonated soft drinks market and wide range of
products. However, the company's weak volume growth and lack of
exposure outside the US keep us on the sidelines.
We currently have a 'Neutral' recommendation on Dr Pepper for the
long term. The stock carries a Zacks #3 Rank (a short-term 'Hold'