De Pepper Snapple Group Inc Analysis

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Xi Guo Dr Pepper Snapple Group Inc. Introduction Dr Pepper Snapple Group is an American soft drink company, based in Plano, Texas. In 2007, there were 89% of company net sales are generated in the US, 4% in Canada, and 7% in Mexico and the Caribbean. (From Annual Report 2008) The energy beverage market is the fouth largest nonalcoholic beverage category, after carbonated soft drinks, sport drinks, and bottled water in the US. The energy beverage market is the fastest growing in the US. The characterize of the energy beverage industry 1, Industry The energy drink market has grown exponentially, with nearly 500 new brands launched worldwide in 2006, and 200 new brands launched in the U.S. in the 12-month period ending July 2007. From 2002 to 2006, the average annual growth rate in energy drink sales was 55% [1]. The total U.S. retail market value for energy drinks was estimated to be $5.4 billion in 2006 and has shown a similar annual growth rate over this same period 47% [2]. 2, Competitors The top 5 competitors in energy beverage market were Red Bull, Monster, Rockstar, Full Throttle and Amp in 2007. According to a report by Agriculture and Agri-Food Canada, 1.5 billion cans of Red Bull were sold in the United States in 2004, highlighting the enormity of this industry. Since Red Bull launched US market in 1997, Red Bull became in the market leader in dollar sales and unit volume. The market share of Red Bull decline from 82% in 2000 to 43% in 2006, because of the new aggressive products with lower prices. Monster was launched in 2002, and had the second largest market share which 14.4% quickly in 2006. Monster Energy sales have benefited from distribute the brand to retailers in different territories. Rockstar energy, which had 11.4% market share in 2006, was launched in 2001 and distributed by Coca Cola in the US. Full Throttle, which
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