Dive Summary:
- Dr. Pepper Snapple reported net income for the second quarter, ended June 30, down 13% to $155 million and revenue down 1% to $1.611 billion.
- The Canada Dry, Dr. Pepper and Sunkist producer's CEO, Larry Young, said the company is very concerned by its lower-than-average performance and the overall U.S. sales declines in diet sodas, due in part to concerns over sweeteners, links to obesity and various municipalities attempting to pass bans on large sugary drinks.
- Despite the weak sales and problems faced by DPS in Q2, analysts predict that weather, an improving economy, the low-calorie Dr. Pepper TEN's increasing market penetration and LIFO accounting benefits will generate earnings growth for 2013.
From the article:
... Addressing DPS' poor performance in the diet category, Young told analysts yesterday: "People want better for you, but the diets are going down. Is that the sweeteners? What is it? That's what we're trying to find out. But with the TEN, I think we've been able to answer part of that." ...
