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Dr Pepper caps deal
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January 14, 1998: 12:14 p.m. ET
Coca-Cola Enterprises renews pact to make, distribute 20 percent of volume
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NEW YORK (CNNfn) - Dr Pepper/Seven Up Inc. has renewed an agreement with its largest single distributor, Coca-Cola Enterprises Inc., parent company Cadbury Schweppes PLC said Wednesday.
Under the new contract, Coca-Cola Enterprises has agreed to manufacture and distribute Dr Pepper until the end of 2005 and other products (such as Canada Dry and Sunkist) until 2001. An existing contract was set to expire at the end of the year.
One beverage analyst said the deal isn't surprising but is important to both parties.
The Coca-Cola Enterprises network currently accounts for one-fifth of overall U.S. sales. In 1996, Dr Pepper sold 805.4 million gallons in the U.S., capturing 5.7 percent of the $14 billion a year soft drink market, according to Beverage World magazine.
"But Dr Pepper is an important brand for CCE," added Manny Goldman, analyst at PaineWebber. "Dr Pepper is the largest of the non-colas. It has a tremendous degree of brand loyalty."
Dr Pepper/Seven Up's soft drink brands represents about 15 percent of the U.S. carbonated software drink market.
-- by staff writer Robert Liu
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