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Dr Pepper Snapple Group, Inc. Message Board

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  • platinumconvert platinumconvert Jan 21, 2011 12:03 PM Flag

    Could DPS compete against Coca-Cola and Pepsi?

    I don't view DPS as a direct compete with Coke or Pepsi, but a compliment play. Sure, they battle it out (like 7 up versus Mist or Sprite)in segments, but DPS is a more pure flavor play. Pepsi is a snacks/beverage play. And Coke -- well coke is the cola bazillion pound gorilla play. If it is a direct compete issue that you are looking for, I think it is a non-start from the get go. It's the wrong question to ask with an investment like DPS. (And, since in many instances, DPS parners with both Pepsi and Coke -- on distribution in the US, on the new Coke vending solution, etc.). DPS is an alternate play to those two, with a focus on flavors and flavor innovation. They are a nice dividend play -- with room for that to grow over the years. And they are a nice diversification play in the beverage sector. I own a little north of 10,000 shares. I let the dividends reinvest, and it will watch that grow over time as the company grows. It's a nice income stream.

    Then again, I've been in it in the low teens, so for me, the price is great, too. Just my 2 cents.

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    • I also bought in the 17's on the way down. I'm loving this company, but I do have my concerns also.

      We simply can't ignore the price in commodity prices across the board and what this is going to mean for earnings going forward.

      I do also agree about the growth potiential due to DPS's mix of brands, target market, and all that good stuff.

      I just feel that the dividend is just an extra layer on incentive to buy the stock. Just the growth potiential alone is a good reason to buy the stock.

    • well said platinum.I jumped in, in the low $20's and am still adding on dips.The line of brands are 2nd to none and future growth potential is huge.

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