Dr Pepper Snapple Group Inc
) recently entered into an agreement with
) to include Dr Pepper and Diet Dr Pepper to the airline's
in-flight beverage service from Jun 2013 through 2016.
The beverage service onboard Spirit Airlines already includes
Dr. Pepper Snapple's products such as Canada Dry Ginger Ale, Club
Soda and Tonic Water and Mr and Mrs T Bloody Mary Mix. Following
the recent deal, Spirit customers will get to enjoy 23 additional
Dr Pepper witnessed 2% decline in sales volume in the first
quarter 2013. Dr Pepper's sales volume is measured in two ways:
1) sales volume and 2) bottler case sales (BCS) volume. Sales
volume represents sales of concentrates and finished beverages
sold to bottlers, retailers and distributors. Bottler case sales
include sales of packaged beverages by the company and its
bottlers to retailers and independent distributors.
Weak sales volume in the quarter was due to declines in the
Beverage Concentrates and Packaged Beverages segments. In the
quarter, BCS volume declined 2% as both carbonated soft drinks
(CSD) and non-carbonated soft drinks (NCB) volumes dipped 2% and
4% respectively. In CSD, Dr Pepper soft drink volume declined 3%
due to weak performance of the base business and Dr Pepper TEN.
The latest agreement with Spirit Airlines is expected to
contribute to volumes as it will help DPS to reach out to 12
million passengers. Also the agreement may also consider other
advertising and marketing programs and the increased brand
building is likely to contribute to volume growth in the upcoming
Dr Pepper carries a Zacks Rank #3 (Hold).
Some other companies from the consumer staple sector that are
performing well include
The WhiteWave Foods Company
). Both the companies carry a Zacks Rank #2 (Buy).
DR PEPPER SNAPL (DPS): Free Stock Analysis
PEPSICO INC (PEP): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): Free Stock Analysis
WHITEWAVE FOODS (WWAV): Free Stock Analysis
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