Dr Pepper’s Prescription for the Energy-Starved: Venom
The newly formed Dr Pepper Snapple Group signaled its entry into the increasingly crowded energy drink field with the rollout yesterday of its new Venom beverage brand.
Venom’s first two flavors, Black Mamba and the low-carbohydrate Mojave Rattler, will come in 17-ounce resealable aluminum bottles and carry a suggested $2.29 retail price point. The drinks blend caffeine, I-carnitine, guarana, ginseng and taurine.
“Venom will accelerate Dr Pepper Snapple’s entry into the fast-growing energy drink market by delivering a jolt of killer packaging,” the brand’s marketing director Charlotte Dimery said in a statement.
Dr Pepper Snapple Group was spun off from Cadbury Schweppes PLC in early May. Formerly known as Cadbury Schweppes Americas beverages, the company markets brands such as 7Up, Mott’s, A&W, Sunkist Soda, Hawaiian Punch, Canada Dry, RC Cola and Diet Rite in addition to its namesake brands.
Launching new products like Venom may be particular crucial for Dr Pepper Snapple this year. On June 5, the company reported a 38% increase in net earnings for first quarter 2008 and projected strong earnings results for the full year. But those sales gains were mostly on higher prices and came despite falling sales.
In announcing those financial results, DPSG CEO Larry Schwartz warned that 2008 would be “a challenging year for the beverage industry as a whole,” due to rising commodity costs and a slower economy.
