As reported in the last issue of Beverage Innovation magazine, Peltz’s Trian hedge fund now owns more than 7% of Dr Pepper Snapple, and following his usual modus operandi, is pressing the DPS management to sharpen its performance.
Weinstein already has business links with DPS as chairman of the INOV8 Beverage Co. One of INOV8’s products is the energy drink Hydrive, in which DPS has a minority stake. Weinstein also ran major brands such as A&W root beer and Snapple iced tea, which were later acquired by what was formerly the North American soft drinks division of Cadbury Schweppes, and is now the independent company Dr Pepper Snapple.
Weinstein will effectively replace DPS chief financial officer John Stewart on the board of directors. Stewart will step down from his directorial role when his initial term ends in May.
“Mike’s wealth of industry experience and success in growing great brands will greatly benefit Dr Pepper Snapple, as we pursue our goal of being the best beverage business in the Americas,” said DPS chairman, Wayne Sanders.
The DPS announcement made no reference to Peltz or Trian, but Trian put out its own release, saying: “We enthusiastically support the appointment of Mike Weinstein. Mike successfully turned around Snapple with us in the 1990s [when the business was owned by Trian through the Triarc group], and later held senior positions at Cadbury Schweppes after it acquired Snapple in 2000.
“Mike is a world-class marketer, and has extensive experience growing and revitalising beverage brands. We believe he will be a great resource for DPS as it works to improve strategic focus and operational execution, and to be more efficient with capital outlays.”
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