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CitrusCola
06-03-2008, 07:37 AM
While in eastern TN recently, my wife spoke to a soft drink delivery man in a grocery store. My wife asked him about where she could find Ski. The man told her that Ski used to be widely available in the area, but now it's hard to find outside of Chattanooga. After my wife had told the guy where she was from, he asked her if she knew about Sun-Drop. She answered that Sun-Drop was widely available in central NC. The man then started talking about how convoluted the soft drink distribution system is. He stated that his company owns Sun-Drop and Dr Pepper, but that Coca-Cola has the distribution rights for both in the area. He claimed that Coke kept the distribution of Sun-Drop to a minimum because they also sell Mello Yello and Vault. He added, "I work for Dr Pepper/Snapple, but I'm not allowed to distribute either Dr Pepper or Snapple. Tell me that's not messed up."

The man added that "they keep telling me that things are going to change, but I'll believe it when I see it." I think that the distribution system is a big issue for DPSG.

greg
06-03-2008, 02:41 PM
The "new"DrPepper Snapple Group will change things in the near future. As contracts to Coke and Pepsi come to date you will see that they will no longer be renewed and that what used to be known as DPSU houses will begin to start selling their name sake brands once again.
The stores will have a much more balanced soda aisle now instead of having 30ft of Coke 25 of pepsi and 5 of "Independent" ( #'s are for example only)

BhamCokeman
06-03-2008, 08:30 PM
I'm going to have to disagree with you on that. For example, here in Birmingham, Buffalo Rock has DP. Why would Cadbury want to turn it over to some bottom of the barrel around here company like DPSU. THey arent in over half the stores, and the ones they get in to, they are gone 6 weeks later. I'm talking about major stores here. It would kill there sales, and the DP name alone might get them in there eventually, but I see it hurting them more than helping. Same goes in Lake Charles LA. It's part of United, and the largest per capita for DP in the world. Why would you take it away from them just to give it to someone else down there, that might hurt it more than help. JMO.

fusion
06-03-2008, 09:08 PM
And those contracts are generally in perpetuity, they aren't renewed.

drpep
06-03-2008, 09:10 PM
I thought the same thing as BhamCokeman. I rmember what happened to 7-UP and A&W years ago when Pepsi and Coke stopped distributing them here. It took a long time for them to gain back space on the shelves and to this day still have limited space.

Cheer-wined
06-03-2008, 09:59 PM
He stated that his company owns Sun-Drop and Dr Pepper, but that Coca-Cola has the distribution rights for both in the area.

Are you sure that was in eastern TN? I can't think of anywhere in that area where a Coke distributor has Sundrop and Dr Pepper. In the Tri-Cities, CCBCC has neither. Further south towards Knoxville, CCE has Dr Pepper but Sundrop is with Cadbury.

Sounds more like eastern NC.

CitrusCola
06-03-2008, 10:03 PM
"Why would Cadbury want to turn it over to some bottom of the barrel around here company like DPSU."

Cadbury spun off the US drink division. What used to be the DPSU bottling group is a part of the new independent company, Dr Pepper Snapple Group.

As far as distribution, I think where DPSG has it's own bottling and distribution system in place, it could do okay in getting Dr Pepper on the shelves. Where it would have problems is in areas where it has no system of its own. Here in the NC Piedmont, for example, they depend on Carolina Beverages (the folks who make Cheerwine) to bottle and distribute most of their products [except Dr Pepper and Squirt which are handled by Pepsi].

CitrusCola
06-03-2008, 10:05 PM
The guy my wife spoke with was in a store south of Maryville, TN.

BhamCokeman
06-03-2008, 10:31 PM
That's another point fusion. They are generally life long contracts and you would really have to screw up to lose something. Trust me, I have nothing against Pibb because it does quite well around here, but if I could have DP I would take it any day.

Cheer-wined
06-03-2008, 11:37 PM
The guy my wife spoke with was in a store south of Maryville, TN.

Dude's smokin' something. Maryville is CCE, they have DP but have never had Sundrop.

Maybe that's why it doesn't sell well. The C-S guy doesn't realize that he's the one who's supposed to distribute it.

CitrusCola
06-04-2008, 06:50 AM
That may be the case. My wife added that the guy had never heard of Cherry Lemon Sun-Drop. He also told her that Sunkist Cherry Limeade (which I thought tasted like carbonated Cherry Kool-Aid) was one of the best-selling products in the area. I found that difficult to believe.

On a different note, do you know who distributes Sun-Drop in Robbinsville, NC (Graham county)? I noticed that both the Dr Pepper and the Sun-Drop 6-packs in the Ingles there were in a different type of bottle from all of the other drinks. Those drinks were in bottles that looked like inverted cones on the top. I've seen bottles like that before -- last summer around Oak Island, NC. Both the Dr Pepper and the Sun-Drop were on a bottom shelf beneath the Coke products.

Cheer-wined
06-04-2008, 10:18 AM
CCBCC distributes all the Sundrop in western NC. The territory came via Consolidated's purchase of Western NC Coca-Cola in the 90's. It would be a great place for RC Asheville to revive Kick.

IIRC, Dr Pepper in Robbinsville would be distributed by Pepsi Teeter out of Hickory. They have most of the DP territory in west/southwest NC. Teeter buys many packages, including DP, from Carolina Canners in Cheraw.

The attachment is a few years old but it shows all of the Sundrop packages that have been available recently in the Carolinas. I am guessing that you saw either the 12oz or 16.9 angle bottles.

greg
06-04-2008, 12:58 PM
I'm going to have to disagree with you on that. For example, here in Birmingham, Buffalo Rock has DP. Why would Cadbury want to turn it over to some bottom of the barrel around here company like DPSU. THey arent in over half the stores, and the ones they get in to, they are gone 6 weeks later. I'm talking about major stores here. It would kill there sales, and the DP name alone might get them in there eventually, but I see it hurting them more than helping. Same goes in Lake Charles LA. It's part of United, and the largest per capita for DP in the world. Why would you take it away from them just to give it to someone else down there, that might hurt it more than help. JMO.


Bottom line is why wouldn't they take it away form Coke and give it to one of their own?

I understand your reasoning but why would you think the beverage division was spun off? Yeah sure the confectionary side was doing much better but then again once you have a beverage only divison it changes the scope of thinking.
DPSG, when it was Cadbury Schweppes, bought Southeast Atlantic operating in Georgia and Florida last year, why would it do such a thing if it didn't have its mind made up to distribute its own products.
Look at the products under the DPSG Banner now and tell me they would not automatically make a weaker distributor stronger and a more powerful negotiator at the Category Table?
This has been in the planning styage sfor years and it has now only come to fruition.

And BTW, There is no such thing as a "perpetual" contract. There are volume hurdles and milestones to hit, Cash outlays, marketing committments, Sponsorship committments, BUYOUTS,you name it there is something in every contract ( concerning beverages) that will be able for it to be broken or negated.
Understandably the current distributor does every thing in his power to keep the brand, however, they can be negated.

greg
06-04-2008, 01:02 PM
I thought the same thing as BhamCokeman. I rmember what happened to 7-UP and A&W years ago when Pepsi and Coke stopped distributing them here. It took a long time for them to gain back space on the shelves and to this day still have limited space.


7up is a major brand but has nowhere the presence of Dr Pepper and Sunkist.
Do you think a store will allow DP and Sunkist to NOT be a part of their set?

drpep
06-04-2008, 03:44 PM
Yes, especially Sunkist.

BhamCokeman
06-04-2008, 06:55 PM
Who knows if they would do without DP or not? I would not have ever thought they would do without 7 up, but most of them around here do. This was a strong 7 up marker and Buffalo Rock fouThght for the longest to keep it. They are in most grocery stores(4 foot set max, and are usually kicked out 3 months later) and if they are in a C store they are not in the cold box. THey'll have a UR 30 counter top, a MM-14 in a corner burried somewhere, or at the max a MT-27(and it's mostly in Indian owned stores they get that because their prices are so cheap). In most stores I'll sell 4-8 cases of 20 oz Pibb to their 5-10 DP, so I guess it would be up to the owner to see if the consumer would settle for Pibb. Maybe it's just me, but some of these bottles like Buffalo Rock, and so on... losing it where it's so strong already.

CitrusCola
06-04-2008, 07:15 PM
Cheer-wined,

Yes, it was the "angle" bottles that I saw.

On the matter of distribution, my thinking is this: if a company relies on a competitor to distribute one of their primary products, then that company will never be an industry leader. Now that Dr Pepper Snapple Group is a stand-alone company, they have to either be bold and try to gain ground on Coke and Pepsi, or they have to try to find a merger partner in a different business (like Pepsi/Frito-Lay). They don't have a candy business to fall back on anymore.

The bottling operations that Cadbury-Schweppes purchased before the spin off of the drinks division would seem to indicate that the new company would take an aggressive approach.

This map shows where they need to do some work:

Dr Pepper Seven Up Bottling Company Locations (http://www.dpsubg.com/locations.asp)

I guess time will tell.

greg
06-05-2008, 12:49 PM
Who knows if they would do without DP or not? I would not have ever thought they would do without 7 up, but most of them around here do. This was a strong 7 up marker and Buffalo Rock fouThght for the longest to keep it. They are in most grocery stores(4 foot set max, and are usually kicked out 3 months later) and if they are in a C store they are not in the cold box. THey'll have a UR 30 counter top, a MM-14 in a corner burried somewhere, or at the max a MT-27(and it's mostly in Indian owned stores they get that because their prices are so cheap). In most stores I'll sell 4-8 cases of 20 oz Pibb to their 5-10 DP, so I guess it would be up to the owner to see if the consumer would settle for Pibb. Maybe it's just me, but some of these bottles like Buffalo Rock, and so on... losing it where it's so strong already.

Again, you make solid arguments, however, consider giving a DPSG distributor Dr Pepper, 7up, and Sunkist, as well as the Snapple brands will make them have to Step up to the plate and produce. DPSG has money and motivation to succeed now that they are 'paying their own way" They will get the job done.

Consider the competiiton now:
Coke- Pibb
DPSG- Dr Pepper
Pepsi- Zilch( unless of course if they reincarnate Sobe Green Lizard- LOL)

Coke- Sprite
DPSG- 7Up
Pepsi- Sierra Mist

Coke-Minute Maid
DPSG- Sunkist
Pepsi- Slice

Coke- Coke
DPSG- RC
Pepsi- Pepsi

Coke-Barqs
DPSG- A&W, Stewrts, Hines, IBC
Pepsi- Mug

These are just the soda aisle offerings. Go non CSD and there is water, juices, ED's and more.


Other than the Citrus/Energy segment like Mtn Dew and Surge/Vault/ or whatever else Coke is offering these days I see a balanced playing field. ( I don't think Sundrop fits in this category, correct me if I am wrong) Not all the same volumes yet when combined all bring a sold portfolio to the table.

fusion
06-05-2008, 08:46 PM
Actually, Sundrop is a viable competitor against Dew and Vault/Mello Yello.

Pepsi also has Tropicana Twister fruit flavored sodas and Coke replaced Minute Maid with Fanta a while back.

CitrusCola
06-05-2008, 11:07 PM
CCBCC distributes all the Sundrop in western NC. The territory came via Consolidated's purchase of Western NC Coca-Cola in the 90's. It would be a great place for RC Asheville to revive Kick.

That's a great idea! DPSG could produce Kick and sell it in places where they cannot distribute Sun-Drop. They could do something similar in areas where they can't distribute Dr Pepper. Back in the '70s, Royal Crown had a product to compete with Dr Pepper -- Dr Nehi. Since the products of the old Royal Crown Cola Company are all now owned by DPSG, they could revive Dr Nehi.

While Kick and Dr Nehi sales would certainly not match those of Sun-Drop or Dr Pepper, they would dilute the market for citrus and "pepper" style drinks. DPSG would get some money from the sale of all four products. I wonder if there are any legal barriers to stop DPSG from doing this?

greg
06-06-2008, 12:16 PM
Actually, Sundrop is a viable competitor against Dew and Vault/Mello Yello.

Pepsi also has Tropicana Twister fruit flavored sodas and Coke replaced Minute Maid with Fanta a while back.

Thank you for the correction. I forgot about Fanta....shows you how much I pay attention to that category! LOL