Dr Pepper Snapple Makes $30M Push Behind TEN Platform

PLANO, Texas – A year after the national rollout of Dr Pepper TEN, the Dr Pepper Snapple Group (DPSG) is investing more than $30 million in the brand.

The news came as DPSG made its 2013 full-year guidance in its earnings conference call on Wednesday.

"As I look back on 2012, I am proud of the team's continuing ability to outperform the [carbonated soft drink] category, growing dollar share as measured by Nielsen and closing distribution gaps across CSDs, teas and juices," said DPSG President and CEO Larry Young.

"Moving forward, nothing is more important than reinvigorating the CSD category and giving lapsed consumers a reason to come back to the brands they know and love. Our new TEN platform provides consumers the great taste and full mouth-feel of a regular CSD, but with only 10 calories per 12 ounce serving. These products have been well-received by both consumers and our retail and bottling partners and, collectively with Dr Pepper TEN, give us great confidence that we can bring excitement and lapsed users back to the category," he added.

The company's huge bet on the TEN platform could be a drag on earnings growth for 2013, according to Bonnie Herzog, managing director of tobacco, beverage and consumer research at Wells Fargo Securities LLC. However, the brand could prove a winner down the road.

"Although we have heard initial mixed reviews from our retailer contacts in our recent Beverage Buzz survey results, we are optimistic that the TEN Platform could be incremental for DPS over the long term," she added.

In late December, DPSG revealed that it would be expanding its TEN line, adding 10-calorie versions of its 7-Up, Sunkist, Canada Dry, RC Cola and A&W Root Beer brands to complement its existing Dr Pepper TEN, as CSNews Online previously reported.