Deal With DPS Aligns and Strengthens PBG's Flavor Portfolio
SOMERS, N.Y. & PLANO, Texas--(BUSINESS WIRE)--Aug. 21, 2008--The
Pepsi Bottling Group, Inc. (NYSE: PBG) and Dr Pepper Snapple Group,
Inc. (NYSE: DPS) today announced that the companies have signed an
agreement to make the Crush beverage portfolio available in the
majority of PBG's territories throughout the United States.
"At PBG, we continue to look for ways to strengthen and diversify
our product portfolio. This agreement is an important part of our
strategy to do so, as it aligns our flavored offerings across the U.S.
and Canada," said PBG North America President Rob King. "The addition
of Crush greatly enhances our position in the flavored soft drink
category, as it's a terrific brand with broad consumer appeal and
attractive growth prospects."
Jim Johnston, DPS President of Sales, said: "PBG already has a
proven track record when it comes to building and enhancing Crush,
having helped us grow the brand into one of the leading flavored soft
drinks in Canada. With flavors playing an increasingly important role
in the carbonated soft drink category, we're confident that together
we can repeat that success in the U.S. and make Crush a popular
national brand available to more consumers in more outlets. Simply
put, it's a brand with tremendous untapped potential."
Under the terms of the agreement, PBG will have a perpetual
license to manufacture, sell and distribute the brand, which includes
such flavors as Orange Crush, Diet Orange Crush, and Grape Crush, in
about 80 percent of its territories throughout the United States. The
agreement is effective immediately and PBG will begin distribution in
early 2009. Financial terms were not disclosed.
The Crush brand is currently available in less than 40 percent of
the U.S. The agreement with PBG will nearly double its market
penetration, positioning the brand well for future growth.
Flavored carbonated soft drinks now account for almost half of all
carbonated soft drink (CSD) sales in the U.S., and Orange Crush and
Diet Orange compete in the fourth largest segment of the flavor
category. Orange and grape flavors represent a five percent share of
the CSD market in the U.S.
Crush has been a fixture in the CSD space for decades, with
tremendous name recognition among consumers. Market research shows
that three out of four Americans are aware of the brand.
About PBG
The Pepsi Bottling Group, Inc. (NYSE: PBG) is the world's largest
manufacturer, seller and distributor of Pepsi-Cola beverages. The
company distributes a portfolio of products that includes some of the
biggest brands in the beverage industry, including Pepsi, Diet Pepsi,
Mountain Dew, Sierra Mist, Lipton Iced Tea, Aquafina, Sobe Life Water,
Propel, G2 from Gatorade, Starbucks Frappuccino and AMP. Based in
Somers, NY, PBG had annual sales of nearly $14 billion in 2007 and has
approximately 70,000 employees spread across the U.S., Canada, Greece,
Mexico, Russia, Spain and Turkey. The company operates 100
manufacturing facilities and more than 500 distribution centers. In
the U.S., PBG has the exclusive right to manufacture, sell and
distribute Pepsi-Cola beverages in all or a portion of 41 states and
the District of Columbia. For more information, please visit
www.pbg.com.
About DPS
Dr Pepper Snapple Group, Inc., (NYSE: DPS) is an integrated
refreshment beverage business marketing more than 50 beverage brands
to consumers throughout North America. In addition to its flagship Dr
Pepper and Snapple brands, the company's portfolio includes 7UP,
Mott's, A&W, Sunkist Soda, Hawaiian Punch, Canada Dry, Schweppes,
Squirt, RC Cola, Diet Rite, Penafiel, Rose's, Yoo-hoo, Clamato, Mr &
Mrs T and other well-known consumer favorites. Based in Plano, Texas,
Dr Pepper Snapple Group employs approximately 20,000 people and
operates 24 bottling and manufacturing facilities and more than 200
distribution centers across the United States, Canada, Mexico and the
Caribbean. For more information, please visit
http://www.drpeppersnapple.com.
Forward-Looking Statement
Statements made in this press release that relate to future
performance or financial results of either PBG or DPS are
forward-looking statements which involve uncertainties that could
cause their respective actual performance or results to materially
differ. Neither PBG nor DPS undertakes any obligation to update any of
these statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as to the date
hereof. Accordingly, any forward-looking statement, with respect to
PBG, should be read in conjunction with the additional information
about risks and uncertainties set forth in PBG's Securities and
Exchange Commission reports, including PBG's annual report on Form
10-K for the year ended December 29, 2007, and with respect to DPS,
should be read in conjunction with the additional information about
risks and uncertainties set forth in DPS Securities and Exchange
Commission Filings, including DPS' registration statement on Form 10
filed April 22, 2008.
CONTACT: Press:
The Pepsi Bottling Group, Inc.
Jeff Dahncke, 914-767-7690
jeff.dahncke@pepsi.com
or
Dr Pepper Snapple Group
Greg Artkop, 972-673-8470
greg.artkop@dpsg.com
or
Investor:
The Pepsi Bottling Group, Inc.
Mary Winn Settino, 914-767-7216
msettino@pepsi.com
or
Dr Pepper Snapple Group
Aly Noormohamed, 972-673-6050
aly.noormohamed@dpsg.com
SOURCE: The Pepsi Bottling Group, Inc.
