Time to Invest in the Dr. Pepper Spin

Dr. Pepper Snapple Group (A.K.A. “Dr. Pepper") (DPS) stands out from other spin-offs due to its well-known brand names, discounted valuation to comparables and added selling pressure due to its listing in a the US from a parent with a UK shareholder base. Dr Pepper officially became an independent company after the demerger from its parent company, Cadbury Schweppes (CBY) (who is also trading under a new ticker symbol), was completed on May 7^th, 2008.

Dr. Pepper is in the great business of selling sugar water. They, of course, have very well-known brand names, which include: Dr Pepper, Snapple, 7UP, Mott’s, A&W, Canada Dry, Hawaiian Punch, Schweppes, IBC, Sunkist, Nantucket Nectars and Yoo-hoo. The branded beverage business has been a great business for decades. Recently, there have been some concerns about the growth rates of carbonated beverages.