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

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

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.

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

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.

Originally Posted by Swifty

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.

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 .

They say 70% of the US Coke distributes it

Because Dc. Pepper gansta!!!!

Originally Posted by greg

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.