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FoodBev Media
22 August 2008
Pepsi Bottling Group embraces Crush
The Pepsi Bottling Group (PBG) and Dr Pepper Snapple Group (DPS) have announced that the companies have signed an agreement to make the Crush beverage portfolio available in the majority of PBG’s territories throughout the US.
Under the terms of the agreement, PBG will have a perpetual licence to manufacture, sell and distribute the brand, which includes such flavours as Orange Crush, Diet Orange Crush and Grape Crush, in about 80% of its territories throughout the US. 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% of the US. The agreement with PBG will nearly double its market penetration, positioning the brand well for future growth.
Flavoured carbonated soft drinks now account for almost half of all carbonated soft drink sales in the US, and Orange Crush and Diet Orange compete in the fourth largest segment of the flavour category. Orange and grape flavours represent a 5% share of the CSD market in the US.
Crush has been a fixture in the CSD space for decades, with tremendous name recognition among consumers. Market research shows that three out of four Americans are aware of the brand.