Dr Pepper Snapple Group buys stake in Big Red

by Eric Schroeder
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PLANO, TEXAS — Dr Pepper Snapple Group, Inc. (DPS) reached agreement to acquire a minority interest in Big Red, Inc., maker of the No. 1 selling red soda, Big Red.

Financial terms of the transaction were not disclosed.

DPS is the largest distributor of Big Red products in the United States, accounting for approximately 80% of the brand’s overall case volume. In addition to Big Red soda, the Waco, Texas-based privately-held company markets Big Peach, Big Pineapple, Big Punch and other flavored soft drink brands.

"Allied brands are an important part of our overall route to market strategy, enabling us to enhance our own brand portfolio with strong regional players like Big Red whose consumer base overlaps well with our bottling and distribution footprint," said Rodger Collins, president of Dr Pepper Snapper Bottling Group. "Taking an equity stake in allied brands gives us a greater opportunity to participate in their marketing, growth and long-term success."

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