Beverage Industry

DPS signs agreement to reacquire distribution rights in Asia-Pacific

Several other non-carbonated beverage brands included in agreement

March 4, 2013

Dr Pepper Snapple Group (DPS), Plano, Texas, announced that it has reached an agreement with Mondeléz International Inc., Deerfield, Ill., to reacquire the distribution rights for Snapple and several other non-carbonated beverage brands in parts of Asia-Pacific.

The company will have the rights to distribute Snapple in Australia, Malaysia, Singapore, China, Hong Kong, Japan and South Korea. In Australia, the company also will have distribution rights for Mott’s, Mr & Mrs T, Clamato, Mistic, Holland House and Yoo-hoo.

“This agreement enables us to explore opportunities for expanding the presence of Snapple and other non-carbonated brands in an important region of the world,” said Jim Johnston, president of beverage concentrates and Latin America beverages for DPS, in a statement. “Obtaining the distribution rights to Snapple and other brands in Asia-Pacific gives us a foothold in a growing market that we can tap for future development over time.”

Terms of the agreement were not disclosed. The company said it does not anticipate that the acquisition will have any material effect on its 2013 financial results.

Additionally, DPS announced last week that it acquired the business assets and territory of Dr. Pepper/7-UP Bottling Company of the West, Reno, Nev. The acquisition includes rights to the Dr Pepper/7UP-West territory and ownership of its distribution operations in Reno; Chico, Calif.; and Boise, Idaho.

Dr Pepper/7UP-West serves a territory that includes northern Nevada as well as parts of northern and western California and Idaho. The bottler distributes Dr Pepper, Snapple, 7UP, Sunkist soda, A&W and RC Cola, as well as several DPS-allied brands including Fiji, Neuro, Rockstar and Vita Coco.

“Since 2006, Dr Pepper Snapple has acquired a number of bottling businesses to strengthen our route to market in the U.S. and support efforts to build and enhance our leading brands,” said Rodger Collins, president of packaged beverages for DPS, in a statement. “As with previous acquisitions, bringing Dr Pepper/7UP-West into DPS enables us to leverage the power of our integrated business model to drive executional excellence, improve customer service and get our brands into consumers’ hands with greater efficiency.”

Terms of this purchase also were not disclosed, and the company also said it does not anticipate that the acquisition will have any material effect on its 2013 financial results.