Tuesday, 22 November 2016

Dr. Pepper Snapple Spending $1.7B On Flavored Water

As consumers turn toward beverages that aren’t soda, the major players in the business have been taking note, and trying to keep up. Like Dr. Pepper Snapple Group, which just went shopping for new drinks and ended up spending $1.7 billion to buy itself a flavored water company.

Dr. Pepper Snapple said on Tuesday that it’s agreed to buy Bai Brands LLC, a company that makes low-calorie drinks made with extracts from the fruit that surrounds the coffee bean. Bai claims that its beverages contain natural sweeteners and are rich in antioxidants, as well as low in calories — all factors that appeal to many consumers who may have stopped buying soda.

Specifically, the company’s lineup includes “enhanced water,” carbonated flavored water, coconut water, and premium ready-to-drink teas.

Dr. Pepper Snapple is already an investor in Bai and has distributed the company’s products for a few years, The Wall Street Journal notes. This acquisition will provide “a strong platform to incubate and grow better-for-you beverages throughout the non-carbonated and carbonated beverage sectors,” Dr. Pepper Snapple says in a press release about the deal.

Larry Young, DPS President and CEO says the company is also “impressed with their innovation pipeline, which will continue to meet the needs of consumers seeking great tasting, low-calorie beverages with natural flavors and no artificial sweeteners.”


by Mary Beth Quirk via Consumerist

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