Boston, MA 05/05/2014 (wallstreetpr) – Dr Pepper Snapple Group Inc. (NYSE:DPS) is a relatively new player in the beverage industry that is already controlled by giants Coca-Cola Company (NYSE:KO) and PepsiCo Inc (NYSE:PEP). However, the company’s performance is not all that dwarfed by the rivals. In any case, its soda sales have benefited from strong sales in North America even as rivals suffer sales decline due to increasing health concerns over soda.
As soda market becomes volatile, players have been seen seeking to move into health drinks or adopt healthier sweetening solutions for their soft drinks. For example, PepsiCo recently entered an exclusive acquisition of a sweetener that is not based on sugar that it expects to use in its soft drinks to improve sales. Coca-Cola is also seeking for alternative sweetening solutions to maintain grip on the soda market. But even so, all the beverage companies are turning to product diversification with an eye on healthy drinks and Dr Pepper Snapple Group Inc. (NYSE:DPS) can also be seen keeping up with the pace.
The company’s launch of new soft drinks helped support sales in the previous year, and it expects to benefit from the same trend in to the future to satisfy discerning customers. Based on the launch of new products, Dr Pepper Snapple Group Inc. (NYSE:DPS) witnessed its carbonated beverage sales up 3 percent in 2013 at a time when Coca-Cola and PepsiCo suffered a sharp decline in soda sales.
Therefore, it can be seen that while competing with beverage giants Coca-Cola and PepsiCo is a tall order, Dr Pepper Snapple Group Inc. (NYSE:DPS) is not taking the competition lying down. As such, the company expects to improve its market share in the beverage market as it joins rivals in the launch of healthier drinks whose market share is fast-growing around the world as populations increasingly become concerned about what they drink from the shelves.
Returning value to shareholders
Dr Pepper Snapple Group Inc. (NYSE:DPS) is not only keeping up the pace with rivals in the product market, but it is also keen on keeping its shareholders happy just as its rivals. In addition to consisted quarterly dividend, the company also buys back its own shares. For example, it returned more than $400 million to shareholders in a stock repurchase last year, and it intends to spend between $375 and $400 million this year in further shares repurchase.