The three beneficial owners with over 5% of the company’s common stock include JAB, Mondelēz, and BDT & MSD Partners. Dr. Pepper is an American carbonated soft drink that, like Coca-Cola, was invented by a pharmacist in the nineteenth century. The first drink was thought to have been served in 1885 and was marketed around the United States in 1904. In addition to the USA, Dr. Pepper is now sold in Australia, New Zealand, South Africa, South America, Asia, and Europe.
| Detail | Description |
|---|---|
| Brand | Dr Pepper |
| Ownership Structure | Wholly owned subsidiary |
| Parent Company | Keurig Dr Pepper Inc. |
| Acquisition Date | July 2018 (merger between Dr Pepper Snapple Group and Keurig Green Mountain) |
| Founding Date | 1885 (Dr Pepper) |
| Founder | Charles Alderton |
| Headquarters | Frisco, Texas, USA |
| Primary Business | Manufacturing and selling soft drinks, juices, teas, mixers, and other non-alcoholic beverages |
| Strategic Goals | Expanding product portfolio, increasing market share in North America, leveraging the coffee and beverage synergies from the merger, and enhancing distribution channels |
Additional Ownership Details
- Corporate Structure and Ownership: Dr Pepper is a brand under Keurig Dr Pepper Inc., a publicly traded company on the NASDAQ under the ticker symbol KDP. This company was formed through the merger of Keurig Green Mountain and Dr Pepper Snapple Group in July 2018. The combined entity is controlled by JAB Holding Company, a Luxembourg-based investment firm that holds a significant stake in the company. JAB Holding Company is a private equity firm with a focus on consumer goods and is managed by the Reimann family, one of Europe’s wealthiest families.
- History and Brand Development: Dr Pepper is one of the oldest major soft drink brands in the United States, dating back to its creation in 1885 by Charles Alderton, a pharmacist in Waco, Texas. The drink gained popularity for its unique blend of 23 flavors, which set it apart from other sodas. Over the years, Dr Pepper became a staple in American beverage culture, known for its distinct taste and marketing campaigns. The brand was previously part of the Dr Pepper Snapple Group, which included other popular beverage brands such as 7UP, Schweppes, and Snapple.
- Business Model and Revenue Streams: Keurig Dr Pepper Inc. operates a diversified business model, producing and distributing a wide range of beverages, including carbonated soft drinks, juices, teas, mixers, and coffee products. The company generates revenue through direct sales to retailers, grocery stores, restaurants, and vending machines, as well as licensing agreements and partnerships with bottlers and distributors. Keurig Dr Pepper’s business model leverages its extensive portfolio of well-known brands to drive sales across multiple beverage categories.
- Product Innovation and Portfolio Diversification: Dr Pepper continues to innovate by introducing new flavors and product variants to meet changing consumer preferences. The brand offers products such as Dr Pepper Cherry, Dr Pepper Zero Sugar, and limited-edition flavors that appeal to a wide audience. The merger with Keurig Green Mountain expanded the company’s product offerings to include coffee products, enhancing its ability to reach consumers across different beverage segments. Keurig Dr Pepper focuses on expanding its product portfolio to capture new market opportunities and cater to diverse consumer tastes.
- Market Expansion and Distribution: Keurig Dr Pepper Inc. has a strong presence in North America, where it holds a significant market share in the soft drink and coffee sectors. The company’s distribution strategy emphasizes direct store delivery and partnerships with independent bottlers to ensure broad availability of its products. Keurig Dr Pepper continues to explore opportunities for international expansion, particularly in regions where the Dr Pepper brand is less established. The company’s robust distribution network and strategic partnerships enhance its ability to reach consumers and drive growth in key markets.
- Brand Positioning and Marketing: Dr Pepper positions itself as a distinctive and flavorful alternative to traditional colas, appealing to consumers who seek unique taste experiences. The brand’s marketing strategy focuses on emphasizing its heritage, uniqueness, and the blend of 23 flavors that make it stand out in the market. Dr Pepper leverages advertising campaigns, social media engagement, and sponsorships to connect with its target audience and reinforce its brand identity. The company’s marketing efforts aim to build brand loyalty and attract new consumers by highlighting the versatility and appeal of Dr Pepper.
- Leadership and Governance: Keurig Dr Pepper Inc. is led by a team of experienced executives and a board of directors responsible for guiding the company’s strategic direction. Robert Gamgort serves as the Chairman and CEO, bringing extensive experience in the consumer goods industry. The company’s leadership emphasizes innovation, operational excellence, and strategic growth to navigate the competitive beverage landscape effectively. Keurig Dr Pepper’s governance structure includes oversight from JAB Holding Company, ensuring alignment with the firm’s broader investment goals and priorities.
| Aspect | Description | Analysis | Examples |
|---|---|---|---|
| Products and Services | Dr. Pepper offers a variety of carbonated soft drinks under its brand, including the iconic Dr. Pepper soda, Diet Dr. Pepper, Dr. Pepper Cherry, and other flavor variants. The brand also produces and markets other beverages, such as Snapple, 7UP, and more. Dr. Pepper’s products are known for their unique flavors and appeal to consumers seeking a distinctive taste. | Dr. Pepper’s core products are carbonated soft drinks with unique flavors, including the iconic Dr. Pepper soda. The brand offers a range of flavor variants to cater to diverse consumer preferences. Additionally, Dr. Pepper has expanded its product portfolio through the acquisition of other beverage brands. The brand’s distinctive flavors contribute to its market appeal and consumer loyalty. | Carbonated soft drinks with unique flavors (Dr. Pepper, Diet Dr. Pepper, Dr. Pepper Cherry), expansion of the product portfolio through acquisitions (e.g., Snapple, 7UP), catering to diverse consumer preferences, market appeal driven by distinctive flavors and consumer loyalty. |
| Revenue Streams | Dr. Pepper generates revenue primarily through the sale of its carbonated soft drinks and other beverage products. Key sources of revenue include the sales of Dr. Pepper soda, Diet Dr. Pepper, Dr. Pepper Cherry, Snapple, and 7UP, among others. The brand also earns income through licensing agreements and brand partnerships. | The primary revenue source for Dr. Pepper is the sale of its carbonated soft drinks and other beverages. Sales of iconic products like Dr. Pepper soda and expanded product lines contribute significantly. Licensing agreements and brand partnerships provide additional income streams. Dr. Pepper’s diverse product portfolio and brand recognition enhance revenue stability. | Revenue from the sale of carbonated soft drinks and other beverages (Dr. Pepper soda, Diet Dr. Pepper, Dr. Pepper Cherry, Snapple, 7UP), income from licensing agreements and brand partnerships, diverse product portfolio, and brand recognition contributing to revenue stability. |
| Customer Segments | Dr. Pepper targets a broad customer base that includes consumers of all ages. Its products appeal to individuals seeking a unique and refreshing beverage experience. The brand’s various flavor options cater to diverse taste preferences. Dr. Pepper also markets to retailers, restaurants, and convenience stores as distribution partners. | Customer segments for Dr. Pepper encompass consumers of all ages seeking a unique and refreshing beverage experience. The brand’s diverse flavor options make it appealing to individuals with varying taste preferences. Dr. Pepper also collaborates with retailers, restaurants, and convenience stores as distribution partners to reach a wider audience. | Consumers of all ages seeking a unique and refreshing beverage experience, diverse taste preferences addressed through various flavor options, collaboration with retailers, restaurants, and convenience stores as distribution partners for wider reach. |
| Distribution Channels | Dr. Pepper distributes its beverages through a network of retailers, convenience stores, restaurants, vending machines, and online platforms. The brand utilizes a wide range of distribution channels to ensure its products are easily accessible to consumers. Dr. Pepper’s partnerships with distributors and retailers play a crucial role in product availability. | Distribution channels for Dr. Pepper include a wide network of retailers, convenience stores, restaurants, vending machines, and online platforms. These diverse channels ensure that the brand’s products are readily available to consumers. Collaborations with distributors and retailers are essential for product distribution and visibility. Dr. Pepper’s convenience and accessibility contribute to its market presence. | Distribution through retailers, convenience stores, restaurants, vending machines, and online platforms, diverse channels ensuring product accessibility, collaborations with distributors and retailers for distribution and visibility, convenience and accessibility contributing to market presence. |
| Key Partnerships | Dr. Pepper collaborates with a range of partners to support its operations. It works with bottling companies and distributors to manufacture, package, and distribute its beverages efficiently. The brand also partners with retailers, restaurants, and convenience stores to ensure product availability. Additionally, Dr. Pepper engages in marketing partnerships and sponsorships for brand promotion and visibility. | Collaborations with bottling companies and distributors are essential for manufacturing and distributing beverages efficiently. Partnerships with retailers, restaurants, and convenience stores facilitate product availability and market reach. Marketing partnerships and sponsorships enhance brand promotion and visibility. Dr. Pepper’s strategic partnerships contribute to its market presence and growth. | Collaborations with bottling companies and distributors for efficient manufacturing and distribution, partnerships with retailers, restaurants, and convenience stores for product availability and market reach, marketing partnerships and sponsorships for brand promotion and visibility, strategic partnerships contributing to market presence and growth. |
| Key Resources | Dr. Pepper’s key resources include its diverse portfolio of beverage brands, a team of marketing and distribution experts, manufacturing facilities for producing beverages, a network of bottling partners and distributors, an established brand reputation, and a commitment to product innovation and flavor development. | A diverse portfolio of beverage brands provides market diversification. A skilled team of marketing and distribution experts drives brand visibility and product availability. Manufacturing facilities ensure the production of beverages. Collaborations with bottling partners and distributors support efficient distribution. Dr. Pepper’s established brand reputation reinforces its market position. A commitment to product innovation and flavor development sustains consumer interest. | Diverse portfolio of beverage brands, a team of marketing and distribution experts, manufacturing facilities, network of bottling partners and distributors, established brand reputation, commitment to product innovation and flavor development. |
| Cost Structure | Dr. Pepper incurs costs related to manufacturing and production of beverages, marketing and advertising expenses for brand promotion, distribution and logistics costs, employee salaries and benefits, raw materials and ingredients, packaging materials, and potential regulatory and compliance costs. | Costs related to manufacturing and production are essential for beverage production. Marketing and advertising expenses promote brand recognition and product visibility. Distribution and logistics costs cover transportation and storage. Employee salaries and benefits ensure a skilled workforce. Raw materials and ingredients, as well as packaging materials, are necessary for production. Potential regulatory and compliance costs may arise to meet industry standards. | Costs related to manufacturing and production, marketing and advertising expenses, distribution and logistics costs, employee salaries and benefits, raw materials and ingredients, packaging materials, potential regulatory and compliance costs to meet industry standards. |
| Competitive Advantage | Dr. Pepper’s competitive advantage lies in its diverse portfolio of beverages with unique flavors. The brand’s long-established reputation and consumer loyalty enhance its market position. Strategic partnerships with distributors and retailers ensure widespread product availability. Continuous innovation in flavors and marketing efforts contribute to customer engagement and brand loyalty. Dr. Pepper’s ability to adapt to changing consumer preferences and market trends is a source of resilience and competitiveness. | Dr. Pepper’s competitive advantage is rooted in its diverse portfolio of beverages, distinctive flavors, and long-established reputation. Strategic partnerships with distributors and retailers enhance its market presence. Innovation in flavors and marketing fosters customer engagement and loyalty. The brand’s adaptability positions it as a resilient and competitive player in the beverage industry. | Diverse portfolio of beverages with unique flavors, long-established reputation and consumer loyalty, strategic partnerships with distributors and retailers, innovation in flavors and marketing efforts, adaptability to changing consumer preferences and market trends, resilience and competitiveness. |
JAB BevCo B.V.
JAB BevCo B.V. is an indirect subsidiary of JAB Holding Company. Formed as a partner-led investment firm in 2021, JAB manages around $50 billion in capital across investments in predominantly consumer goods and services. Some of the company’s other key investments include Krispy Kreme, Pret, Snapple, 7-Up, Green Mountain Coffee, and Schweppes.
JAB was formed as an investment partnership between JAB Holding Company and strategic co-investor JCP – a Luxembourg-based investment fund for family offices, endowments, institutional investors, and other professional investors.
Mondelez International Holdings LLC
Mondelēz International is a multinational food and beverage conglomerate with its headquarters located in Deerfield, Illinois, USA. The company was formed in 2012 after a split from Kraft Foods and is listed on the NASDAQ stock exchange under the ticker symbol “MDLZ”.
Mondelēz International operates in more than 150 countries and has a diverse range of popular brands under its portfolio. These include Cadbury, Oreo, Ritz, Toblerone, Philadelphia, Trident, Halls, and Milka, to name a few.
In recent years, Mondelēz has been reducing its stake in Dr. Pepper. In September 2020, the company owned about 158 million shares in Keurig Dr. Pepper for an 11.2% stake. This has now reduced to about 118 million shares or an 8.3% stake.
BDT Oak Acquisition Vehicle, L.P.
BDT Oak Acquisition Vehicle is an entity registered in the Cayman Islands but with a headquarters in Chicago, Illinois.
The entity is related to BDT Capital Partners (now BDT & MSD Partners) – a merchant bank that incorporates advisory and investment services. BDT & MSD Partners was formed in 2023 as the result of a merger between BDT & Company – founded by Byron Trott in 2009 – and MSD Partners, an investment firm that invests on behalf of Michael Dell among others.
The company currently has offices in Frankfurt, Palm Beach (Florida), London, Dallas, Los Angeles, Chicago, and New York. The BDT Oak Acquisition Vehicle owns 8.1% of Dr. Pepper or around 114 million shares.
Other shareholders
A cohort of 21 Executive Officers and Directors own about 1% of the company, with NEOs Robert Gamgort and Ozan Dokmecioglu and Directors Peter Harf and Olivier Goudet the largest individual shareholders.
It is also worth noting that Goudet and Harf are the CEO and Chairman of JAB respectively. Gamgort is the current Chairman and CEO of Keurig Dr. Pepper who replaced Dokmecioglu after he resigned from the role in November 2022 due to personal conduct violations.
Key takeaways:
- Dr. Pepper is an American carbonated soft drink that, like Coca-Cola, was invented by a pharmacist in the nineteenth century. The three beneficial owners with more than 5% of the company’s common stock include JAB, Mondelēz, and BDT & MSD Partners.
- JAB manages around $50 billion in capital across investments in predominantly consumer goods and services. It was formed as an investment partnership between JAB Holding Company and strategic co-investor JCP.
- Mondelēz International is a multinational food and beverage conglomerate with its headquarters located in Deerfield, Illinois, USA. BDT & MSD Partners was formed in 2023 as the result of a merger between BDT & Company and MSD Partners.
Key Highlights
- Dr. Pepper and Beneficial Owners:
- Dr. Pepper is an American carbonated soft drink invented in the nineteenth century by a pharmacist, similar to the creation of Coca-Cola.
- The three beneficial owners holding over 5% of the company’s common stock are JAB, Mondelēz, and BDT & MSD Partners.
- JAB BevCo B.V.:
- JAB BevCo B.V. is an indirect subsidiary of JAB Holding Company, an investment firm managing around $50 billion in capital.
- JAB’s investments primarily focus on consumer goods and services. Some notable investments include Krispy Kreme, Pret, Snapple, 7-Up, Green Mountain Coffee, and Schweppes.
- Formed through an investment partnership between JAB Holding Company and JCP, an investment fund based in Luxembourg.
- Mondelez International Holdings LLC:
- Mondelēz International is a multinational food and beverage conglomerate headquartered in Deerfield, Illinois, USA.
- Formed in 2012 after splitting from Kraft Foods, the company is listed on the NASDAQ stock exchange under “MDLZ.”
- Operates globally with a diverse brand portfolio including Cadbury, Oreo, Ritz, Toblerone, Philadelphia, Trident, Halls, and Milka.
- Mondelēz’s stake in Dr. Pepper reduced from an 11.2% stake to 8.3% through a reduction in shares.
- BDT Oak Acquisition Vehicle, L.P.:
- BDT Oak Acquisition Vehicle is linked to BDT Capital Partners (now BDT & MSD Partners), a merchant bank providing advisory and investment services.
- BDT & MSD Partners emerged from the merger of BDT & Company and MSD Partners, with a presence in various global locations.
- BDT Oak Acquisition Vehicle owns around 8.1% (114 million shares) of Dr. Pepper.
- Other Shareholders:
- A group of 21 Executive Officers and Directors collectively own about 1% of the company.
- Key individual shareholders include NEOs Robert Gamgort and Ozan Dokmecioglu, and Directors Peter Harf and Olivier Goudet.
- Goudet and Harf hold leadership positions at JAB, while Gamgort is the Chairman and CEO of Keurig Dr. Pepper.
- Leadership Changes:
- Ozan Dokmecioglu, who held the role of Chairman and CEO of Keurig Dr. Pepper, resigned due to personal conduct violations in November 2022.
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