Keeping afloat changing preferences

The carbonated soft drink business has had to adapt to shifting consumer preferences. Mark Docherty, VP drug accounts for Dr Pepper Snapple Group, believes there is still plenty of opportunity in carbonated and other beverages categories. He spoke to Drug Store News about how DPSG is meeting new challenges in the market.

Drug Store News: Dr Pepper Snapple Group recently won top honors in the Product of the Year USA awards for Canada Dry Green Tea Ginger Ale and Mott’s for Tots. What consumer needs do you think these innovative products fulfill?

Docherty: Mott’s For Tots and Canada Dry both answer consumer calls for great flavor and functionality in their beverages. Mott’s for Tots was developed in response to doctor recommendations for mothers to dilute juice for their toddlers to cut down the sweetness. We saved Mom the step by pre-diluting Mott’s apple juice with purified water, but the vitamins in each serving are the same as for a full-strength juice. Canada Dry Green Tea has brought the benefits of green tea and antioxidants to a soft drink, showing consumers that they can get functional benefits in a great-tasting carbonated soft drink.

DrSN: Will enhanced beverages become a bigger part of the category? What types of products are we likely to see in the future?

Docherty: As consumers continue to become more health-minded, they continue to look for beverages that fit into their healthy lifestyles. We have been focused not only on offering great-tasting beverages without the calories, but also on innovating new products with added functionality across different segments.

Our enhanced CSDs are helping drive excitement into the category. We see a lot of potential for this segment to continue to grow, based on the success of Canada Dry Green Tea Ginger Ale. We’re introducing a diet version of Canada Dry Green Tea Ginger Ale this year, as well as a new Cherry 7UP with Antioxidant. And outside the CSD category, we’ll continue to build on the success of functional beverages, [such as] Mott’s for Tots, Mott’s Plus for Kids/Mott’s Plus Lite and Snapple Super Premium teas and juices.

DrSN: Flavored carbonated beverages seem to have renewed popularity among consumers. Where is that trend going?

Docherty: Consumers are seeking variety and, as a result, they are gravitating to flavored CSDs, while colas continue to lose share. With a portfolio focused primarily on flavors, we’ve been able to grow our share of the CSD market for four consecutive years. We see that trend continuing to gain momentum going forward.

DrSN: What other segments of the beverage category are expected to grow in this tight economy?

Docherty: We continue to be optimistic about our flavored CSD portfolio, especially as consumers continue to look for value. In addition, as the economy tightened last year, we saw growth in multi-serve juice drinks, [such as] Hawaiian Punch.