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Dr Pepper Snapple Group, Inc. Message Board

  • platinumconvert platinumconvert Jun 7, 2010 3:08 PM Flag

    Coke deal is a screaming good deal

    Anyone disappointed in this deal is nuts. When you factor in the investment in the new Coke fountain system with regular and diet DPS being the only non-Coke product in the lineup, it is 100% inline with the Pepsi deal. Coke is DPS' number 1 outside distributor, so keeping the good Doctor flowing through those channels is well worth it. Plus, a $715 million cash windfall. Anyone expecting more is just nuts. With their two competitors paying them $1.6 billion over a 12-16 month period, and the enhanced distribution brough on with the Pepsi deal and the Coke new fountain system -- share holders should be applauding, not selling, the stock.

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    • Guess I'm nuts...

      I would have liked another $115mm and so did the market.

      Glad you are happy with the otcome.

      • 2 Replies to ehunterg
      • Another (good) reason that the KO deal is a little less than the PEP deal is that DPS took back distribution on some of the smaller brands that they want to relaunch, like they relaunched Sunkist and Snapple. I really like how this company is methodically going through their brands, and investing in them for strong, long term growth. The Investor Presentation was very impressive, and I believe they are low-balling their growth prospects.

      • That extra $115 mil you wanted went into investing in the new Coke distribution system, and made DP the only non-Coke product to be delivered through their new fountain system. I'd say that is money well invested. So the way I look at it, they got that "extra" money, just chose to invest it in a new, value added distribution. We'll trend back up. I[ll take that any day of the week...

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