DPS has distribution agreements with both KO and PEP so they are allies to some extent. DPS is big in flavored drinks and flavors are gaining share vs the colas. DPS has an excellent management team that is determined to deliver EPS growth in the high single digits and to return capital to investors via an increasing dividend and stock buybacks. They have stated that they will focus on organic growth not acquisitions. The things that seem to trouble mgt. the most, assuming the economy continues to improve, are price wars between the big retailers and the possibility of spreading soda taxes. Also, KO and PEP recently announced ventures with artificial sweetener companies to develop non-sugar, low calorie versions of their drinks. DPS could possibly be at a disadvantage if they lag behind here. Not sure what kind of returns you're expecting from the banks you're looking at but I'm expecting avg. annual returns of approx. 10-14% over the next several years.
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.