Pepsi Bottling Group and Dr. Pepper Snapple to Make Crush Portfolio Available in PBG's Territories

PBG | Quote | Chart | News | PowerRating -- The Pepsi Bottling Group and Dr Pepper Snapple Group 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.

"At PBG, we continue to look for ways to strengthen and diversify our product portfolio. This agreement is an important part of our strategy to do so, as it aligns our flavored offerings across the U.S. and Canada," 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."

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, company officials noted that 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.

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.

The Pepsi Bottling Group is a manufacturer, seller and distributor of Pepsi-Cola beverages.

Dr Pepper Snapple Group, is an integrated refreshment beverage business marketing more than 50 beverage brands to consumers throughout North America.

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