BOSTON — Dr Pepper, which turns 140 years old next year, is not showing any signs of slowing down. Tim Cofer, chief executive officer of Keurig Dr Pepper, Inc., sees growth opportunities for the brand in three areas: distribution, Dr Pepper Zero Sugar and product introductions.
Keurig Dr Pepper still may expand Dr Pepper’s reach through distribution, he said Sept. 4 at Barclays Global Consumer Staples Conference in Boston.
“Certain sizes, flavors, and certain geographies, believe it or not, we have the right, given the velocity and the track record, to be further distributed,” Cofer said, later mentioning Arizona as a promising market.
“Arizona was kind of a white space for us,” Cofer said. “It’s a great state, a large population, high growth, multicultural, and now we’ve got KDP assets on the ground, two facilities, Tempe and Tucson, and we can service that entire state.”
Dr Pepper Zero is attracting young and multicultural consumers, Cofer said.
“We’ve got a lot of head space of growth still on Dr Pepper Zero,” he said.
Next year, Keurig Dr Pepper will launch another Dr Pepper variety, which will follow recent Strawberries & Cream and Creamy Coconut introductions under the brand.
“Last year Strawberries & Cream was a $300 million success at retail, No. 1 CSD (carbonated soft drink) new innovation in the entire country, and then this year, we followed it up with Creamy Coconut,” Cofer said. “Creamy Coconut is our most successful LTO, limited-time offering.”
Sales in Keurig Dr Pepper’s US Refreshment Beverages unit, which includes Dr Pepper, increased to $2.41 billion in the second quarter ended June 30, which compared with $2.33 billion in the previous year’s second quarter.
US Coffee business unit sales in the quarter fell to $950 million from $970 million. In coffee, Keurig Dr Pepper will offer the Keurig Alta Brewer for a variety of hot and cold barista-style beverages.
“So this new brewer starts by providing all types of beverages, the traditional drip long black coffee, but also a high-pressure espresso, your lattes, your cappuccinos and cold coffee, so every form of coffee you'd like in one brewer,” Cofer said.