Dr Pepper Snapple Group encouraged by Core 4 Ten platform Q3 performance
Dr Pepper Snapple Group continues navigating through a challenging economic climate. Despite experiencing some pressure in its carbonated soft drinks category, president and CEO Larry Young is reportedly encouraged by the performance of the company’s Core 4 TEN platform.
Reported net sales for the third quarter ended increased 1% reflecting 3 percentage points of positive mix and pricing, partially offset by a 1% sales volume decline and higher discounts.
“We continue to operate in an extremely challenging environment, with significant pressures in the carbonated soft drinks category now impacting both regular and diet products,” said Young. “Against this backdrop, our teams remained committed to executing our strategy and we continued to gain volume share while holding value share in the CSD category.”
The company is continuing to invest in its brands and Young expressed confidence in the company’s ability to make good on its profit goals for 2013.
For the quarter, bottler case sales (BCS) volume was flat with carbonated soft drinks flat and non-carbonated beverages (NCBs) declining 1%.
In CSDs, Dr Pepper volume decreased 1%, as the CSD category continued to face significant headwinds. The company’s Core 4 brands, which include TEN, were flat as a high-single digit increase in Canada Dry was offset by mid-single digit declines in 7UP and Sunkist soda and a low-single digit decrease in A&W. Peñafiel increased double-digits, and Crush and Sun Drop both experienced high-single digit declines. Fountain foodservice volume was flat, cycling 2% volume growth in the prior year period.
In NCBs, Hawaiian Punch volume declined 6%. This decline was partially offset by a 4% increase in Snapple and a 1% increase in Mott’s.
By geography, U.S. and Canada volume declined 1%, and Mexico and the Caribbean volume increased 6%.
For the quarter, sales volumes decreased 1%.
Net sales in beverage concentrates for the quarter increased 2% as concentrate price increases taken earlier in the year and favorable mix were partially offset by a 2% volume decline.
Net sales in packaged beverages for the quarter were flat as a 2% decline in sales volumes was offset by favorable mix and pricing.