Why Coca-Cola Should Copy Dr Pepper Snapple and Make One Blockbuster Acquisition
Executivess at Coca-Cola (KO) may want to look at a blockbuster deal pulled off by Dr Pepper Snapple Group (DPS) for some inspiration on what it should do with Monster Beverage (MNST) .
The maker of Canada Dry and Dr Pepper sodas said Tuesday it will spend $1.7 billion in cash to acquire the entire portfolio of Bai Brands, which mostly makes flavored still water filled with antioxidants, an increasingly important niche inside of the broader growing bottled water market. Not only will Bai Brands give Dr Pepper Snapple Group greater access to all things flavored still water, but it will allow it to capture growth from the brand's newer ventures such as tea and flavored sparkling beverages.
Such a deal for Bai Brands isn't a shocker.
Dr Pepper Snapple Group already distributes the company's drinks under an agreement inked in 2013. The growing distribution channels for Bai Brands has helped to...