Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Beverage NewsCarbonated Soft Drinks

DPS reports 3 percent increase in net sales for Q3

Company expects full-year reported net sales to be up approximately 1 percent

Dr Pepper Snapple Group logo
October 23, 2014

Dr Pepper Snapple Group Inc. (DPS), Plano, Texas, announced a 3 percent increase in reported net sales in the third quarter, driven by favorable segment mix, product and package mix, and net pricing. Reported segment operating profit (SOP) increased 4 percent, or $15 million, driven by favorable commodity costs and ongoing productivity improvements that were partially offset by higher transportation and manufacturing costs. SOP also was negatively impacted by an unfavorable year-over-year last-in-first-out (LIFO) comparison of $7 million and an unfavorable comparison to a $6 million adjustment to a legal provision in the prior year, the company says.

Reported income from operations for the quarter was $316 million, which includes a $2 million unrealized commodity mark-to-market loss. By comparison, reported income from operations was $300 million in the prior-year period, which included a $1 million unrealized commodity mark-to-market gain. Core income from operations for the quarter was $318 million, up 6 percent compared with the prior-year period.

Bottler case sales (BCS) volume increased 1 percent during the quarter, with carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) both increasing 1 percent.

In the CSD category, Peñafiel volume increased 25 percent on product innovation. The company’s Core 4 brands increased 3 percent, driven primarily by a high-single-digit increase in Canada Dry. Sunkist soda increased low-single-digits, while 7UP and A&W were both flat in the quarter. Schweppes increased 8 percent and Dr Pepper volume declined 2 percent, driven primarily by declines in DPS’s diet products. Fountain foodservice volume grew 1 percent in the quarter.

In the NCB category, Clamato volume increased 7 percent, and the company’s water brands grew 3 percent in the quarter. Snapple grew 2 percent in the quarter, driven primarily by mid-single-digit growth in Snapple Premium, which was partially offset by the company’s de-emphasis on its value products. Hawaiian Punch volume decreased 2 percent in the period, and Mott’s declined 1 percent with lower sauce volumes.

By geography, volume in the United States and Canada was flat, and volume in Mexico and the Caribbean increased 10 percent.

In terms of sales volume for beverage concentrates, packaged beverages and Latin America beverages, the third quarter was flat and the year-to-date timeframe was up 1 percent. Beverage concentrate net sales for the quarter decreased 1 percent, as concentrate price increases taken earlier in the year were more than offset by a 3 percent decline in concentrate shipments. SOP for the quarter was flat, as the decline in net sales and increases in certain operating costs were offset by planned reductions in marketing investments of $2 million and favorable cost of goods trends.

Net sales for packaged beverages for the quarter increased 2 percent on higher sales volume. Favorable product and package mix was offset by increased promotional activity in the quarter. SOP increased 8 percent as a result of favorable cost of goods trends and ongoing productivity improvements, which were partially offset by an unfavorable comparison to a $6 million adjustment to a legal provision in the prior year and increased manufacturing and logistics costs in the current year.

Latin America beverage net sales for the quarter increased 21 percent with a 10 percent increase in volume driven primarily by Peñafiel innovation, higher pricing associated with the pass-through of the sugar tax in Mexico, and favorable mix. SOP increased 38 percent as net sales growth and ongoing productivity improvements were partially offset by increases in logistics and operating costs.

“Our teams posted yet another quarter of solid performance in what continues to be an extremely challenged environment,” said DPS President and Chief Executive Officer Larry Young said in a statement. “We remained focused on our strategy of building our brands with consumers and executing with excellence in the marketplace.

“Rapid Continuous Improvement (RCI) has become the foundation of our business, and it continues to yield improvements across the organization,” he continued.  

Year-to-date, reported net sales increased 2 percent, and reported income from operations was $924 million, including $10 million of unrealized commodity mark-to-market gains. By comparison, reported income from operations was $782 million in the prior-year period, which included $13 million of unrealized commodity mark-to-market losses. Core income from operations was $914 million, up 14 percent compared with the prior-year period.
 
The company now expects full-year reported net sales to be up approximately 1 percent and core earnings per share to be in the $3.56 to $3.62 range.

KEYWORDS: financial reports

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • top 100 beverage companies

    Top 100 Beverage Companies of 2024

    For the global beverage market, mergers and acquisitions...
    Beverage News
  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Alternative Drinks
    By: Lauren Sabetta
Manage My Account
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Celsius Fizz Free

CELSIUS launches new Fizz-Free flavors

PepsiCo.jpg

PepsiCo advances AI agenda

Narragansett Beer 1975 cans

Narragansett Beer celebrates 50 years of ‘Jaws’

Top 100 Beverage Companies of 2024

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Dr Pepper Snapple Group logo

    DPS acquires assets of Davis Beverage Group, Davis Bottling Co.

    See More
  • bodyarmor

    DPS invests in BA Sports Nutrition, BodyArmor brand

    See More
  • Celsius

    Celsius reports 61 percent rise in net revenue for Q3

    See More

Related Products

See More Products
  • food and bev control.jpg

    Food and Beverage Cost Control, 7th Edition

  • nanoinbev.jpg

    Nanoengineering in the Beverage Industry 1st Edition

  • fermentation.jpg

    Fermentation Processes: Emerging and Conventional Technologies

See More Products
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing