Reuters Blogs

Shop Talk

Retailers, consumers and prices

13:50 May 7th, 2008

Dr Pepper gets flat reception on Wall Street

Posted by: Brad Dorfman
Tags: Shop Talk, , , ,

doc.jpgDr Pepper Snapple Group debuted on the New York Stock Exchange Wednesday after being spun off from British candy and gum company Cadbury. 
 
The company is putting together a five-year plan to improve its business in Latin America, but its main focus will be on selling more drinks in the United States, Chief Executive Larry Young told Reuters.
 
Unfortunately, that might not be what Wall Street wants to hear.
 
Dr Pepper’s exposure to the sluggish U.S. soft drinks business could hurt growth.
 
 ”The firm has a mixed stable of brands, lacks the scale and product portfolio breadth enjoyed by larger rivals Coke and Pepsi, and relies almost exclusively on the mature and highly competitive U.S. market,” Morningstar analyst Mitchell Corwin said.
 
Still, Young says the company’s brands will take care of themselves.
 
“We have great brands, great people and are focused on delivering great results,” he said. “We’ll let the market take care of the price.”

(Reuters photo)

Post Your Comment

*
To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Click to hear an audio file of the anti-spam word

House Rules:
  • We moderate all comments and will publish everything that advances the post directly or with relevant tangential information
  • We try not to publish comments that we think are offensive or appear to pass you off as another person, and we will be conservative if comments may be considered libelous information.