Dr Pepper Snapple is scheduled to announce its Q2 results on July 24. Continued headwinds in the carbonated soft drinks category are expected to drag down North American volumes for the beverage manufacturer again this quarter. The Texas based company depends on domestic sales more than its chief competitors The Coca-Cola Company and PepsiCo, which together accounted for over 71% of the net volumes in the U.S. CSD market in 2013. This is because Dr. Pepper primarily operates in North America, with the U.S. contributing 88% to the top line last year, whereas both Coca-Cola and PepsiCo sell beverages in almost every part of the world. The North America CSD division constitutes almost 70% of Dr. Pepper’s valuation by our estimates. While both Coca-Cola and PepsiCo’s CSD volumes in North America fell 1% in Q1, Dr. Pepper’s CSD volumes in the region also fell 1% during this period, reaffirming the trend of contracting soda sales in the domestic market. Dr. Pepper’s North America soda volumes are expected to decline again this quarter.
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