PLANO, Texas, Oct. 6 /PRNewswire-FirstCall/ -- Dr Pepper Snapple Group
(NYSE: DPS) today said it expects to receive formal notification from Hansen
Natural Corporation terminating its agreements to distribute Monster Energy as
well as its other beverage brands in certain U.S. markets.
'Monster energy drinks are in less than one-third of our company-owned
footprint,' said Larry Young, president and CEO of DPS. 'The successful
launch of Venom, Dr Pepper Snapple's own energy drink brand, which was
recently endorsed by Cowboys football star Terrell Owens, as well as expanded
distribution of HYDRIVE, an enhanced energy drink in which DPS has an equity
stake, together with our integrated business model give us confidence that we
will be able to build a broader and even stronger energy portfolio and
continue to participate in the long-term growth of this category.'
Year-to-date through September 2008, DPS said it generated approximately
$170 million and $30 million in revenue and operating profits, respectively,
distributing Hansen Natural brands in the U.S. The company will record a
one-time gain related to the contract termination when terms are finalized.
The company expects to provide more details related to the gain and the 2008
and 2009 financial impact on or before its third quarter earnings call in
November 2008.
About Dr Pepper Snapple Group
Dr Pepper Snapple Group, Inc. (NYSE: DPS) is an integrated refreshment
beverage business marketing more than 50 beverage brands to consumers
throughout North America. In addition to its flagship Dr Pepper and Snapple
brands, the company's portfolio includes 7UP, Mott's, A&W, Sunkist Soda,
Hawaiian Punch, Canada Dry, Schweppes, Squirt, RC Cola, Diet Rite, Penafiel,
Rose's, Yoo-hoo, Clamato, Mr & Mrs T and other well-known consumer favorites.
Based in Plano, Texas, Dr Pepper Snapple Group employs approximately 20,000
people and operates 24 bottling and manufacturing facilities and more than 200
distribution centers across the United States, Canada, Mexico and the
Caribbean. For more information on DPS, please visit
http://www.drpeppersnapple.com.
Forward looking statement
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, in particular,
statements about future events, future financial performance, plans,
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cost and availability of raw materials. Forward-looking statements include all
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forward-looking terminology such as the words 'may,' 'will,' 'expect,'
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terms or similar expressions. These forward-looking statements have been based
on our current views with respect to future events and financial performance.
Our actual financial performance could differ materially from those projected
in the forward-looking statements due to the inherent uncertainty of
estimates, forecasts and projections, and our financial performance may be
better or worse than anticipated. Given these uncertainties, you should not
put undue reliance on any forward-looking statements. All of the
forward-looking statements are qualified in their entirety by reference to the
factors discussed under 'Risk Factors,' 'Special Note Regarding
Forward-Looking Statements,' and elsewhere in our Registration Statement on
Form 10 filed with the Securities and Exchange Commission on April 22, 2008.
Forward-looking statements represent our estimates and assumptions only as of
the date that they were made. We do not undertake any duty to update the
forward-looking statements, and the estimates and assumptions associated with
them, after the date of this release, except to the extent required by
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SOURCE Dr Pepper Snapple Group