PLANO, Texas -- Dr Pepper Snapple Group Inc. has reached an agreement to acquire a minority interest in Big Red Inc. A privately-held company based in Waco, Texas, Big Red markets its namesake red carbonated soft drink and other flavored soft drink brands. DPS is the largest distributor of Big Red products in the country, accounting for approximately 80% of the brand's overall case volume. Terms of the agreement were not disclosed.
"Allied brands are an important part of our overall route to market strategy, enabling us to enhance our own brand portfolio with strong regional players like [image-nocss] Big Red whose consumer base overlaps well with our bottling and distribution footprint," said Rodger Collins, president of Dr Pepper Snapple Bottling Group. "Taking an equity stake in allied brands gives us a greater opportunity to participate in their marketing, growth and long-term success."
Gary Smith, chairman and CEO of Big Red, said, "Dr Pepper Snapple's bottling operations have been a key part of Big Red's success for more than 20 years, and we are very pleased to be taking our partnership with them to a new level through this agreement."
In July 2008, DPS entered into a similar agreement with Hydrive Energy LLC, manufacturer and marketer of Hydrive energy drinks. That agreement provides DPS with equity in the Hydrive business in exchange for meeting various distribution targets.
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, Penafiel, Rose's, Yoo-hoo, Clamato, Mr & Mrs T and others. It operates 24 bottling and manufacturing facilities and more than 200 distribution centers across the United States, Canada, Mexico and the Caribbean.
Along with Big red itself, Big Red Inc. also markets beverage brands Diet Big Red, Big Red Vanilla Float, Big Peach, Big Pineapple, Big Punch, NuGrape, and Nesbitt's products. Distributed widely throughout the Dr Pepper Snapple Group, Coca-Cola Enterprises, and Pepsi Bottling Group, consumers across the country enjoy Big Red, Inc.'s beverages.
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