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PepsiAmericas Signs Agreement with Dr Pepper Snapple Group to Further Boost Crush Brand Distribution

Thursday, September 18, 2008 8:04 AM

Deal strengthens PepsiAmericas flavor portfolio, expands availability of DPS' brand in the South and Midwest

PepsiAmericas, Inc. (NYSE: PAS), and Dr Pepper Snapple Group, Inc. (NYSE: DPS), today announced an agreement that will increase the availability of the Crush beverage brand in PepsiAmericas' territories.

Under the agreement, PepsiAmericas further aligns its fruit-flavored carbonated soft drink (CSD) portfolio behind the DPS Crush brand, which includes such flavors as orange, diet orange, grape and strawberry. The licensing agreement with DPS increases Crush availability to approximately 80 percent of PepsiAmericas' U.S. system through the transfer of existing rights and the addition of new Crush markets. PepsiAmericas will transfer distribution rights for certain brands, including Hawaiian Punch, to DPS as part of the transaction. Other terms of the agreement, which is expected to close in early 2009, were not disclosed.

"PepsiAmericas is committed to providing a diverse portfolio of products to our customers and consumers," said Michael Durkin, executive vice president of U.S. sales and marketing for PepsiAmericas. "Crush is a great brand and it brings more consistency to our flavored product offerings, while meeting growing consumer demand for flavored CSDs."

DPS' agreement with PepsiAmericas is the second deal involving the Crush brand announced in the past month. In August 2008, Pepsi Bottling Group agreed to carry the Crush brand throughout most of its territory. In total, DPS' recent deals will more than double the current U.S. penetration of the Crush brand and position it well for future growth.

"PepsiAmericas has long been a valued partner as a bottler and distributor of Crush, Dr Pepper and other brands within our portfolio," said Jim Johnston, DPS president of sales. "We look forward to working closely with them to expand Crush in their territories and to realize the brand's potential as a leading flavor CSD."

Flavored carbonated soft drinks now account for almost half of all CSD sales in the U.S., and Orange and Diet Orange Crush compete in the fourth largest segment of the flavor category. Orange, grape and strawberry flavors represent about a 6 percent share of the CSD market in the U.S. Market research shows that three out of four Americans are aware of the brand.

About PepsiAmericas

PepsiAmericas, Inc.


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