Report
Sonia Vora
EUR 101.80 For Business Accounts Only

We think Dr Pepper Snapple's brand assets and scale in the U.S. warrant a wide moat rating.

Wide-moat Dr Pepper Snapple’s second-quarter results were largely in line with our expectations, and we don’t anticipate material changes to our $89 fair value estimate. Net sales increased 6% during the quarter (with a 1% contribution from the Bai acquisition), two thirds of which was driven by volume, and we think the firm remains on track to meet our expectation for annual growth around 4%. The company also continued to invest substantial resources behind its core brands, including $36 millio...
Underlying
Dr Pepper Snapple Group Inc.

Dr Pepper Snapple Group is a brand owner, manufacturer and distributor of non-alcoholic beverages in the U.S., Canada and Mexico with a portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, water and mixers. In the CSD market, the company's primary brands are Dr Pepper, Canada Dry, 7UP, Crush, A&W, Sunkist soda, Schweppes and Squirt. In the NCB market segment in the U.S., the company participates primarily in the ready-to-drink tea, juice, juice drinks and mixer categories. The company's segments are: Beverage Concentrates, Packaged Beverages and Latin America Beverages.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Sonia Vora

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