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View Full Version : Dr.Pepper doing their own distributing



doulasc
03-05-2008, 09:55 PM
Why doesn't Dr.Pepper do their own distributing instead of Pepsi,7up or Coca Cola doing it
for them? In Ohio it is Pepsi that distrubutes Dr.Pepper.

Doug

Supra TT
03-05-2008, 10:01 PM
It would be a complete waste of time and money....why not have someone else do it? Then you have to have your own warehouse, emplyoees, managment, trucks, fuel, etc

Swifty
03-05-2008, 10:45 PM
It really would not be worth the cost to maintain their own warehouses and delivery fleet. Dr Pepper has how many products? Less than 10. Whereas a company like Coke or Pepsi has dozens. It simply much more cost effective for Dr Pepper to pay Coke and Pepsi to distribute for them.

fusion
03-06-2008, 01:17 AM
The small bottlers signed contracts with Dr Pepper many years ago, and as the bigger bottlers bought out the smaller ones, they kept the Dr Pepper contracts, because of the strength of the brand.

Notice how few non-Cadbury bottlers carry 7up these days... it's a weak brand, and Pepsi offered the bottlers Sierra Mist.

Cadbury does own their own bottling network, but it is not nationwide.

Cadbury Schweppes Bottling Group (http://www.dpsubg.com)

SamC
03-06-2008, 08:09 AM
Dr Pepper distribution contracts, like those for all brands, are esentually (subject to some performance standards) "forever". Generally these reflect county lines, in the USA.

In many areas a Coke bottler also owns Dr Pepper rights, in many areas a Pepsi bottler, and in many areas it is a "third tier" bottler, along with other C-S brands.

It really makes no difference to C-S, since the bottlers are their only customers, and syrup sold to a Pepsi bottler and syrup sold to an independent bottler is still syrup sold.

7UP used to be in the same situation, but first Coke and then Pepsi forced its bottlers to dump it for Sprite and Sierra Mist.

In many parts of the South, particularly Texas and Oklahoma, Dr Pepper is more popular than Pepsi, and bottlers will never give it up.

greg
03-06-2008, 10:51 AM
It really would not be worth the cost to maintain their own warehouses and delivery fleet. Dr Pepper has how many products? Less than 10. Whereas a company like Coke or Pepsi has dozens. It simply much more cost effective for Dr Pepper to pay Coke and Pepsi to distribute for them.


Coke and Pepsi pay Dr.Pepper(CS) for the right to distribute the brand by way of purchasing inventory. If there is any payment from CS to Coke or Pepsi I am sure it is incentive laden.
Coke and Pepsi make a great deal of money by distributing DP, Sunkist, and others.

lordmadone
03-06-2008, 03:12 PM
I heard in northern parts of virginia Dr.Pepper outsells mountain dew and pepsi(not combined)..thats pretty remarkable..Dr.Pepper is a better mixing drink anyway :).

Supra TT
03-06-2008, 06:09 PM
They say 70% of the US Coke distributes it

b0mbtrac
03-07-2008, 01:03 AM
Because Dc. Pepper gansta!!!!

Swifty
03-07-2008, 10:12 AM
Coke and Pepsi pay Dr.Pepper(CS) for the right to distribute the brand by way of purchasing inventory. If there is any payment from CS to Coke or Pepsi I am sure it is incentive laden.
Coke and Pepsi make a great deal of money by distributing DP, Sunkist, and others.

Thanks for the clarification. I never really knew it was such a hot commodity.

AABCjoe
03-08-2008, 09:24 AM
The small bottlers signed contracts with Dr Pepper many years ago, and as the bigger bottlers bought out the smaller ones, they kept the Dr Pepper contracts, because of the strength of the brand.

Notice how few non-Cadbury bottlers carry 7up these days... it's a weak brand, and Pepsi offered the bottlers Sierra Mist.

Cadbury does own their own bottling network, but it is not nationwide.

Cadbury Schweppes Bottling Group (http://www.dpsubg.com)

Cadbury Schweppes does have a bottling group...and it's growing. They're purchasing more local bottlers to expand thier market. Currently they distribute products to about 230 million of the 300 million or so Americans.

Dr. Pepper and 7Up fell on hard times in the 80's. Coke was buying up local bottlers for their CCE bottling group. Many local bottlers could contract with anybody to bottle whatever they wanted...they could bottle Dr Pepper right along with Coke and Mt. Dew. At this time, 7Up had most of the market share for lemon-lime soft drinks in the country. When coke formed CCE, they told all of the formerly independent bottlers that they MUST now bottle ONLY Sprite. Immediately, 7Up's market share PLUMMETTED. If they didn't have another independent distributor nearby, they were screwed. Later, Pepsi did the same thing with Sierra Mist.

Dr. Pepper stayed alive by selling thier distribution rights to local companies, just to keep thier products on the shelves. These rights are perpetual in most states.