Dr.Pepper/Seven Up, Inc. /Squirt Brand

Dr. Pepper/Seven Up, Inc.

? Soft Drink Industry

    The soft drink industry in the United States is a highly profitably, but competitive market.  In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year.  There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States.  They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share.  Each company respectively has numerous brands that it sales.  These top brands account for almost 73% of soft drink sales in the United States.  Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold.  Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years.  The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks.  The possible impact of this factor will be addressed later in the case.

? Squirt Brand

    Squirt is a caffeine-free, low-sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste.  Squirt is the best selling carbonated grapefruit soft drink brand in the United States.  The origin of Squirt can be traced back to 1938 when a man named Herb Bishop began experimenting with Citrus Club.  Bishop created a new carbonated soft drink that required less fruit and sugar to produce compared to other sodas that were being made at the time.  The new drink "seemed to squirt onto th ...
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