Dr Pepper Snapple Group, Inc.NYSE
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  • Tue, Nov. 22, 7:16 AM
    • Dr Pepper Snapple Group (NYSE:DPS) announces that acquired Bai Brands, LLC for $1.7B.
    • The cash purchase price includes a tax benefit of approximately $400M on a net present value basis and will be financed through new unsecured notes and short term commercial paper.
    • The company says Bai provides a strong platform to incubate and grow better-for-you beverages throughout the non-carbonated and carbonated beverage sectors.
    • The deal is  expected to generate approximately $425M  in net sales in 2017 and add an incremental $132M to current net sales expectation for 2017. The transaction is expected to be approximately $0.03 dilutive to reported EPS in 2017 and accretive to reported EPS in 2018.
    • "Bai has contributed greatly to our allied brand lineup since we began distributing it broadly in 2013. Adding it to the broad range of choices and options in our company-owned portfolio is a natural next step," says a top DPS exec..
    • Source: Press Release
    | Tue, Nov. 22, 7:16 AM | 3 Comments
  • Wed, Oct. 26, 3:21 PM
    • Bai Brands is on the radar of Dr Pepper Snapple (DPS +0.5%), according to Reuters.
    • Sources indicate the companies are in talks over a deal.
    • The Bai lineup of beverages includes the Bai, Bubbles, Cocofusions, Antiwater and Supertea categories.
    • Dr Pepper Snapple acquired a minority stake in the company last year.
    | Wed, Oct. 26, 3:21 PM | 2 Comments
  • Feb. 14, 2015, 10:13 AM
    • Craft soda is starting to become a trend to watch closely, according to industry insiders.
    • Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
    • The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
    • The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
    • Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
    • What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
    • Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
    • Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA,  FIZZ.
    | Feb. 14, 2015, 10:13 AM | 24 Comments
  • Aug. 15, 2014, 8:50 AM
    • The debate on SodaStream (NASDAQ:SODA) is even livelier after Coca-Cola takes a 16.7% equity stake in Monster Beverage.
    • Bulls see the development as increasing the odds of beverage giant such as PepsiCo or Starbucks aligning with SodaStream, while skeptics see the Coca-Cola factor as a market share destroyer for SodaStream.
    • Sluggish demand in the U.S. is being addressed by SodaStream with a new marketing message in which health will be highlighted over conservation.
    • The company's cash position is also in focus. Free cash flow has weakened considerably over the last year due to investments, notes SA contributor Amal Singh.
    • The wildcard in the mix: It's been quiet at Dr. Pepper Snapple (NYSE:DPS) on the M&A front. Some consumer analysts are tipping DPS to be the sleeper pick to acquire SodaStream.
    • SODA +3.7% premarket
    | Aug. 15, 2014, 8:50 AM | 1 Comment