How Dr Pepper went from local favorite to major player
Dr Pepper was founded in 1885 in Waco, Texas. It is the fourth most popular soda in the country after Coke, Pepsi and Mountain Dew. Dr Pepper grew its dollar share by 9% from 2003 to 2021, compared to a 26% drop in carbonated soft drinks category overall. Dr Peppers, Coca-Cola and PepsiCo are the three largest soda companies in $37 billion US market.
Dr Pepper was invented by Charles Alderton. Wade Morrison is credited with patenting the drink and naming it. Legend has it that Morrison named the beverage after Charles Pepper, the father of a woman he loved. Joy Summar-Smith, associate director of the Dr Pepper Museum in Waco, said this story doesn't hold up. Dr. Pepper encouraged customers to drink a Drpper three times a day, at around 10 a.m., 2 p. m. and 4 p., to keep their energy up in the 20th century. In the 1950s, Dr Peppers branded itself "the friendly Pepper-Upper"
Dr Pepper went from being a local favorite to a major player. It is now the third-largest soft drink maker in the country. In the early 20th century, Dr Pepper was distributed only in Texas and nearby states. In 1963, a judge ruled for the bottler and opened the door to the product's national expansion. Dr Peppers started promoting itself as a treat in 1977. Today, it uses a pint-sized mascot called Lil' Sweet in its commercials.
Coca-Cola tried to buy Dr Pepper in 1986, but the FTC blocked the deal. Dr Peppers and 7Up merged in the late 1980s. Cadbury Schweppes took stakes in both companies and later took full ownership. In 2008, Cadburys spun off its North American beverage division to create the Drpeps Snapple Group. Keurig Green Mountain merged with that company in 2010 to form Keursy DrPepper.
Dr Pepper has been gaining momentum while some of its competitors struggle. People reach for Dr Pepper when they want a treat. Dr pepper is the number one most differentiated trademark in beverage. It's where KDP has won. The company has a focus on flavored drinks. Food-service providers have an agreement with either Coke or Pepsi for their soda fountains.
