Dr Pepper Snapple Realignment Produces New CMO

Dr Pepper Snapple Realignment Produces New CMO

Dr Pepper Snapple Realignment Produces New CMO

As part of a broader restructuring, Dr Pepper Snapple Group (DPS) has a new chief marketer.

Jim Trebilcock, currently senior VP marketing and a 21-year DPS veteran, is assuming overall responsibility for the company's marketing efforts. He will report to DPS President/CEO Larry Young.

Randy Gier, formerly executive VP, marketing and R&D, has "decided to pursue career opportunities outside the company," according to DPS.

The just-announced organizational changes are designed to "provide greater clarity around roles and accountabilities, speed decision-making, drive simplification and enhance retail execution," said Young. "It's the logical next step in ensuring that our focus and resources are squarely aligned with our customers and channel partners and that we continue to respond nimbly to the evolving demands of the marketplace."

In addition to the marketing power shift, DPS, which formally separated from parent Cadbury Schweppes in May, outlined the following responsibility structure:

• Rodger Collins will assume responsibility for the company's finished-goods business in addition to his responsibilities as president of bottling group sales. This is designed to optimize DPS's direct-to-store and national warehouse distribution network and support high-priority initiatives, such as its cold drink strategy.

• Pedro Herran, president of the Mexico and Caribbean divisions, will assume responsibility for corporate strategy.

• Tina Barry, currently VP corporate communications, will move into a newly created corporate affairs role, reporting to Young. David Thomas, senior VP R&D, will also report directly to Young.

• Jim Johnston will continue to lead the beverage concentrates business as well as national account sales for the full brand portfolio across all retail channels, fountain/foodservice and Canada. Johnston will be charged with driving growth in the segment through innovative, brand-led sales programs, working with key retailers and Coke-affiliated, Pepsi-affiliated and independent bottlers and distributors.

• Derry Hobson, executive VP, supply chain, will continue to aligning sales demand, manufacturing and logistics and lead the company's efforts to build a world-class supply chain.

With approximately $5.7 billion in sales, DPS is the No. 3 carbonated soft drink (CSD) company, with approximately 15% CSD share to Coca-Cola Company's 43% and PepsiCo's 31%.

The Dr Pepper brand ranks fourth among all CSDs by volume (behind Coke, Pepsi and Mountain Dew), with a 3.8% market share last year, according to Beverage Marketing Corporation (BMC). The soda's volume declined by 2.5%, to 1.2 billion gallons.

New, higher-end teas have helped revive the Snapple brand, which had been losing ground for years. Snapple is also switching from high-fructose corn syrup to cane sugar as of early next year, in response to consumers' increasing aversion to HFCS (despite no evidence that it's any more unhealthy than sugar). Snapple Antioxidant Water, which has had an uphill battle competing with Vitaminwater, is among the DPS brands that will get new packaging.

However, it remains to be seen whether Snapple's revitalization will be sustainable, points out BMC. In addition, flavored CSDs--which along with diet sodas have in recent years been outperforming the rest of this declining category and driving much of DPS's growth-- have been slipping this year.

"DPS remains poised for growth, albeit possibly not as strong as in the period prior to the de-merger," BMC concludes. "Growth in today's marketplace requires both successful innovation and strong marketing. The company has done well with marketing in the past, but has not been especially innovative in an arena where newer beverage styles like sports beverages, energy drinks and enhanced waters have given rivals competitive edges."