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News Update: Dr Pepper Snapple Agreed To License Certain Brands To Coca-Cola For $715 Million

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Uploaded by on Jun 7, 2010

6/7/2010- Dr Pepper Snapple Group (NYSE:DPS) announced that it has agreed to license certain brands to Coca-Cola (NYSE:KO) on the completion of Coke's acquisition of Coca-Cola Enterprises' (NYSE:CCE) North American Bottling Business.

Coca-Cola will distribute Dr Pepper in the U.S. and Canada Dry in the Northeast U.S.

The new agreements with have an initial term of 20 years, with 20-year renewal periods.

"These agreements build a strong foundation for the continued growth of Dr Pepper and our leading flavor brands," said Larry Young, president and CEO of DPS. "It solidifies Coke's support of the Dr Pepper trademark while enabling us to optimize our route-to-market by assuming distribution of several key brands. Additionally, we're increasing our fountain presence, enabling millions of consumers to sample our brands each day - a great win for Dr Pepper."

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