Dive Brief:
- Dr Pepper Snapple reported a 3% jump in net sales for both the third quarter and year-to-date, which came "on a 3% increase in sales volumes, favorable product and package mix and price increases," according to a news release.
- Bottler case sales volumes inched up 2% for the quarter, including a 2% uptick in carbonated beverages and 4% increase in noncarbonated beverages.
- Reported earnings per share were up 9%, and core EPS jumped 10%. The company raised its outlook for the year, expecting 2015 core EPS to be in the $3.92 to $3.98 range, a cut above a previous forecast of $3.85 to $3.93.
Dive Insight:
Similar to what Coca-Cola saw in its earnings earlier this week, Dr Pepper Snapple is seeing bigger gains in its noncarbonated beverages than carbonated beverages. The company's water segment surged by 16%, based mostly on growth in FIJI and Bai 5, from Bai Brands, which the company recently acquired a minority stake in. Snapple also increased volumes by 5% namely thanks to product innovation.
At the same time, Dr Pepper and Crush were flat, while 7UP and Sunkist soda saw mid-single-digit declines. No soda company is immune to consumers' trend away from soda, but Dr Pepper Snapple seems to have weathered the changes better than its major competitors.