MINNEAPOLIS & PLANO, Texas -- PepsiAmericas Inc. and Dr Pepper Snapple Group Inc. have announced an agreement that will increase the availability of the Crush beverage brand in PepsiAmericas' territories. Under the agreement, PepsiAmericas further aligns its fruit-flavored carbonated soft drink (CSD) portfolio behind the DPS Crush brand, which includes such flavors as orange, diet orange, grape and strawberry.
The licensing agreement with DPS increases Crush availability to approximately 80% of PepsiAmericas' U.S. system through the transfer of existing rights and the addition of new [image-nocss] Crush markets. PepsiAmericas will transfer distribution rights for certain brands, including Hawaiian Punch, to DPS as part of the transaction. Other terms of the agreement, which is expected to close in early 2009, were not disclosed.
"PepsiAmericas is committed to providing a diverse portfolio of products to our customers and consumers," said Michael Durkin, executive vice president of U.S. sales and marketing for PepsiAmericas. "Crush is a great brand and it brings more consistency to our flavored product offerings, while meeting growing consumer demand for flavored CSDs."
DPS' agreement with PepsiAmericas is the second deal involving the Crush brand announced in the past month. In August 2008, Pepsi Bottling Group agreed to carry the Crush brand throughout most of its territory. In total, DPS' recent deals will more than double the current U.S. penetration of the Crush brand and position it well for future growth.
"PepsiAmericas has long been a valued partner as a bottler and distributor of Crush, Dr Pepper and other brands within our portfolio," said Jim Johnston, DPS president of sales. "We look forward to working closely with them to expand Crush in their territories and to realize the brand's potential as a leading flavor CSD."
Flavored CSDs soft drinks now account for almost half of all U.S. CSD sales, and Orange and Diet Orange Crush compete in the fourth-largest segment of the flavor category. Orange, grape and strawberry flavors represent about a 6% share of the CSD market in the U.S. Market research shows that three out of four Americans are aware of the brand.
Minneapolis-based PepsiAmericas is the world's second-largest manufacturer, seller and distributor of PepsiCo beverages with trademarks including Pepsi, Diet Pepsi, Mountain Dew, Sierra Mist, Lipton Iced Tea, Sobe Life Water, Propel, Starbucks Frappuccino and AMP. It had annual sales of nearly $4.5 billion in 2007.
Dr Pepper Snapple Group, Plano, Texas, is an integrated refreshment beverage business marketing more than 50 beverage brands to consumers throughout North America. In addition to its flagship Dr Pepper and Snapple brands, the company's portfolio includes 7UP, Mott's, A&W, Sunkist Soda, Hawaiian Punch, Canada Dry, Schweppes, Squirt, RC Cola, Diet Rite, Peñafiel, Rose's, Yoo-hoo, Clamato, Mr & Mrs T and others.
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