I'm surprised there wasn't a thread here on PepsiCo buying PBG & PAS. It's not a done deal yet, Pepsi refiled with the FTC on the deal last month. They expect to close the deal in Q1 2010.

Anyway.. Pepsi and Dr Pepper Snapple recently reached an agreement in regards to bottling and distribution of DPS brands by the future bottling arm of Pepsi. Pepsi will pay DPS $900 million for a 20 year contract with automatic 20 year renewals for the right to distribute Dr Pepper, Crush and Schweppes in the US in areas where they currently distribute those brands. However, they will not get the rights to Vernors, Hawaiian Punch, Squirt, or Sunkist. Those will transfer to DPS. In Canada, they will get Vernors and Sussex in addition to the other three brands, and in Mexico it's just Squirt and Canada Dry.

Dr Pepper Snapple Group Agrees to License Certain Brands to PepsiCo Following Acquisition of Its Largest Bottlers - Dec 08, 2009

Thanks for posting this fusion. This sounds like a smart deal that will make more brands available to more customers. I hope it works out that way.

I'm not surprised by the DPS/PepsiCo agreement. I really think it would hurt DPS to not have Dr.Pepper on the Pepsi trucks in certain PAS/PBG markets currently handling it. It also would have changed the economics behind the deal significantly for both PepsiCo and the PBG/PAS shareholders. Smart move on both sides. DPS took their time and got a nice chunk of cash while PepsiCo will continue to make money and better deals with customers by having strong allied brands.

The deal is pretty much finalized though with the pepsico merger of pbg/pas ...I was told late fourth quarter 2009 possibly 2010 first quarter.

So does this mean that Dr. Pepper will be solely distributed by Pepsi in the US? In the area that I am in, coke distributes Dr Pepper, however our sister branch just to the south distributes Dr. Pepper (both branches are currently PAS affiliated), so is the CCE distributor going to lose the Dr Pepper to us? That would be HUGE for us... Also, does that mean Crush will be solely distributed by Pepsi as well? If so, what's going to happen to sunkist, and squirt for that matter? Are they just going to be taken over by the 7up distributors?

The Dr Pepper, Crush, and Schweppes deals will only be for areas that already carry those products. Other existing franchise rights will remain in place.

Yes, PBG & PAS will be relinquishing rights to Sunkist and Squirt to DPS.

I still think DPSG got one hell of a deal. "Hey Pepsi you can keep the rights you had, just give us a billion dollars and the relinquish your rights to vernors, HP, sunkist, etc...and by the way the deal is only good for 20 years."

That said, Pepsi would have been crazy not to. Insane.

I hope that the purchase of PBG made by PepsiCo improves its operations here in Mexico... here where I live the Pepsi trucks are old and without maintenance, compared with Coke, the available sizes are few... and there's a lack of Pepsi advertising...

Well that just plain sucks that we won't be getting Dr. Pepper from the other guys. And not to mention, losing Sunkist, which is a HUGE seller up here, and Squirt, which has its moments. Looks like the ol' commission check will be dropping some more

With enough work and effort, you can get your Crush numbers pretty high, probably as high as your Sunkist ones with the right distribution and pricing. Just having it in your lineup and part of your ad activity will help. I remember when we went from A&W to Barq's. Barq's was a slow seller for the Canada Dry distributor in that area, but we increased the sales by putting it on displays, in our cooler sets, etc.

Squirt is a tough one, though. Not much else out there like it, except maybe Fanta Grapefruit.