Pepsi and Dr Pepper to Help Expand Crush Soda

The Pepsi Bottling Group and Dr Pepper Snapple Group today announced that the companies have signed an agreement to make the Crush beverage portfolio available in the majority of PBG’s territories throughout the United States.

Jim Johnston, DPS President of Sales, said: “PBG already has a proven track record when it comes to building and enhancing Crush, having helped us grow the brand into one of the leading flavored soft drinks in Canada. With flavors playing an increasingly important role in the carbonated soft drink category, we’re confident that together we can repeat that success in the U.S. and make Crush a popular national brand available to more consumers in more outlets. Simply put, it’s a brand with tremendous untapped potential.”

Under the terms of the agreement, PBG will have a perpetual license to manufacture, sell and distribute the brand, which includes such flavors as Orange Crush, Diet Orange Crush, and Grape Crush, in about 80 percent of its territories throughout the United States. The agreement is effective immediately and PBG will begin distribution in early 2009. Financial terms were not disclosed. 

“At PBG, we continue to look for ways to strengthen and diversify our product portfolio, said PBG North America President Rob King. "The addition of Crush greatly enhances our position in the flavored soft drink category, as it’s a terrific brand with broad consumer appeal and attractive growth prospects.”

The Crush brand is currently available in less than 40 percent of the U.S. The agreement with PBG will nearly double its market penetration, positioning the brand well for future growth.

Flavored carbonated soft drinks now account for almost half of all carbonated soft drink (CSD) sales in the U.S., and Orange Crush and Diet Orange compete in the fourth largest segment of the flavor category. Orange and grape flavors represent a five percent share of the CSD market in the U.S.

FREE News Updates ... Subscribe to Packaging Digest Newsletters Now