Dr Pepper Snapple Essay

5204 words - 21 pages

1.0 THE HISTORY, DEVELOPMENT, AND GROWTH OF THE COMPANY OVER TIME.1.1 THE DR PEPPER SNAPPLE STORYThe original Dr Pepper soft drink was invented in 1885 by a young pharmacist named Charles Alderton. At the time, Alderton was working at Morrison's Old Corner Drug Store in Waco Texas, which served carbonated soft drinks from a soda fountain. Using that resource, Alderton began to experiment with his own recipes and soon discovered that one particular drink, referred to as "the Waco," was gaining popularity among his customers. As demand grew, Alderton and Morrison brought in a third partner to help with the manufacture and bottling of the soft drink.The partner was Robert S Lazenby, owner of the Circle "A" Ginger Ale Company. Alderton left the business shortly thereafter, but Morrison and Lazenby continued on to form what would come to be known as the Dr Pepper Company, named after a friend of Morrison. The company was introduced to the general public in 1904 at the World's Fair Exposition in St. Louis.From its humble beginnings in Morrison's Old Corner Drug Store, the company Alderton and Morrison started has become one of the largest beverage manufacturers in North America. The current product portfolio of DPS is closely tied to the history of mergers and acquisitions of its one time parent company, Cadbury Schweppes plc (Cadbury Schweppes). Cadbury Schweppes emerged in 1969 from the merger of Cadbury plc, a British confectionary and soft drink company, and Schweppes, an international beverage brand. In the three decades that followed, Cadbury Schweppes gained the third largest share of the beverage market in North America through strategic acquisitions. Some notable acquisitions included the Duffy-Mott Company (later known as Mott's), Canada Dry, Sunkist, Crush and Sun Drop in the 1980s. In 1993 the company bought the A&W Brands Squirt and Vernors as well as its signature root beer and cream soda flavors. Cadbury finally purchased Dr Pepper/Seven Up, Inc in 1995, in and acquisition that brought Dr Pepper, 7UP, IBC Root Beer and the Welch's soft drink line into the company portfolio.In 2000, Cadbury Schweppes acquired the Snapple Beverage Group (Snapple). Snapple had previously been part of a failed acquisition by Quaker in 1994. The acquisition had been intended to help Quaker strengthen its beverage division, which included Gatorade at the time. However, after a failure to successfully integrate the contrasting corporate cultures, Snapple was acquired by Triarc Companies in 1997, an investment company with a history of purchasing struggling assets.It was from Triarc that Cadbury Schweppes ultimately acquired Snapple.Three years after the acquisition of Snapple, Cadbury Schweppes combined its four North American beverage companies-Dr Pepper/Seven Up, Snapple, Mott's, and Bebidas Mexico into Cadbury Schweppes Americas Beverages (CSAB). By 2006, CSAB had developed a common vision, business strategy and management structure, as well as...

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