4/1/2013
Dr. Pepper/Snapple Group is spending $30 million in 2013 to build the TEN platform, its fight against obesity. This new product line “gives consumers the same great taste and mouthfeel of a regular soda drink, but with only 10 calories,” says CEO Larry Young. “Everybody has probably even seen today some of the headlines from those CSPI,” he says. “These threats against our industry are not going to go away. We’re not going to sit back and let it bring our volumes down and affect us. We’re behind this.”
The company is targeting teens, moms, and college students.
Dr. Pepper/Snapple first launched Dr Pepper TEN in 2012, which grew Dr Pepper’s trademark household penetration by 3 million households, says Young. Based on that success, the company is now introducing TEN versions of 7Up, Sunkist, A&W, Canada Dry, and RC. They will be packaged in two-liter, 12-pack, 20-ounce, and 12-ounce sampler portions.
The company says this new line isn’t taking away from its Diet and Regular sales or SKUs. “We’ve not lost any of our space. There’s been maybe a little bit come out of private label,” says Young.
The company’s media programming-beginning in March-includes national and local TV, radio, online, and out-of-home branding. It will distribute 1 million cans to consumers and develop targeting coupon programs. There will also be heavy in-store and point-of-sale signage. “The TEN platform may be our most strategically important innovation, so we’re prepared to invest heavily in it,” says EVP Martin Ellen.
Source: Dr Pepper/Snapple Group, Larry Young, CEO, 5301 Legacy Dr., Plano, TX 75024; 972-673-7000; larry.young@dpsg.com; www.drpeppersnapplegroup.com. Also, Martin Ellen, EVP, martin.ellen@dpsg.com.
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