Dr. Pepper Snapple Merger With Keurig – Impact on the Beverage Aisle

The merger of Dr. Pepper Snapple Group with Keurig Green Mountain, which was initially announced in January, was finalized recently. The deal creates the new publicly traded company known as Keurig Dr. Pepper, according to Bev Net is the 3rd largest beverage company in North America.

The merger is going to have a direct impact on the beverage aisle because the combined entity will be utilizing their respective strengths together to create unique delivery systems for the consumer in the future.

The beverage industry is another sector of the economy which is in a “grow or die” phase at this point. In my professional experience in the industry as well as my time covering mergers and acquisitions, the key factor in this segment of business is the distribution network.

That is the main determining factor behind why Coca-Cola and Pepsi dominate the beverage aisle at the grocery store: it is all driven by distribution and shelf space. The smaller brands have a very difficult time competing with the big players in this space because of the costs associated with distributing the product and gaining shelf space for the product.

The executives at the former Dr. Pepper Snapple Group were faced with having to grow in order to compete with the top two players in the industry. The deal with Keurig allows them to do precisely that, it grows their business and their market share.

The deal also includes Allied Brands which is a distribution network that will now be run by the combined Keurig Dr. Pepper which features 125 different brands. This collection of brands are a mix of beverage offerings that are either wholly owned, partially owned, or not owned at all by Keurig Dr. Pepper.

The news over the past five days is about which brands will be dropping out of the new Allied Brands distribution situation. The ripple effect left by these changes will have a definite impact on the beverage industry. Some brands will be promoted on a regional basis in a more visible way.

Conversely, some brands most notably Fiji bottled water will be leaving Allied Brands, according to CNBC, in order to start their own distribution network. The result of these changes will most certainly have a price impact on the consumer, especially if the new or spin-off brands from the Allied distribution network fold into smaller distribution agreements.

The combined strengths of Keurig Dr. Pepper could translate into lower prices or more advantageous bulk sale pricing for the consumer, but that remains to be seen. The single serve delivery system technology that Keurig has mastered could translate into some new concepts that integrate the Snapple iced tea beverage line or create some new innovations on the delivery of Dr. Pepper and its signature flavor.

The merger also helps both entities compete in a grocery channel that is being shaped by Wal-Mart and Amazon/Whole Foods. The persistent pursuit of low prices by Wal-Mart which they require of their suppliers can put the squeeze on profit margins. The combined Keurig Dr. Pepper now has the distribution and production capabilities to compete in a profitable way against the forces of Wal-Mart and Amazon.

It is in this perspective where the consumer will see enhanced value on their favorite soft drinks whether it is Dr. Pepper, 7UP, A&W Root Beer, or Snapple. The distribution of Keurig and their famous pods of all types and varieties and the Green Mountain Coffee products will all see a significant increase into the grocery channel. In addition, perhaps the drug store channel as well given the relationships that Dr. Pepper/Snapple/Allied Brands have developed over decades of time.

The other consideration here is that the combined Keurig Dr. Pepper company can now be an active player in acquisitions which will alter the landscape of the beverage industry. The combined publicly traded entity could target consolidations within the beverage industry, or could seek to enhance their delivery systems or packaging with a purchase of a smaller player in those industry sub-classes.

Keurig Dr. Pepper has a significant positive component working for them in the future: they have a very loyal base of consumers. The consumers in various survey data have identified as “fans” of Keurig and “fans” of Dr. Pepper. The new leadership team of the combined company will utilize new technologies through social media to build deeper relationships with those loyal consumers with cross-branding opportunities to grow revenue further.

The newly combined company features brands that are iconic in America: Dr. Pepper, Snapple, A&W, 7UP, and Sunkist. These brands have multiple products merchandised around them from tee shirts, cups, keychains, and more. They have an identity of their own and this merger promises that these brands will be relevant for a long time to come.

Keurig Dr. Pepper is the largest beverage merger in history and it will dynamically shape the future for the beverage aisle and provide new innovations to the delivery of beverages in an increasingly fast paced way of life for the consumer.

(some background information and industry data courtesy of Bev Net and CNBC)

Marketing Your Message Through All “The Noise”

The central component for a start-up business, small business, independent contractor, or solo practitioner to be able to master to succeed is marketing your unique message. This is much easier stated than actually executed because of all “the noise” that is present today.

The social media alerts, the networking updates from LinkedIn, texts, “tweets”, and Instagram feeds make it very difficult to differentiate your message from the sea of posts popping up literally every second.

The past five years, while working on messaging as a freelance writer and then in the past 14 months as a Certified Professional Coach, I have learned in a “trial by fire” type of way about messaging. It takes time, patience, constant energy and true thoughtfulness to make it all work.

The best way to build and share that message is to connect in an honest and authentic way. It starts by networking within small groups on social media in a very organic way. That communication and sharing could lead you to start an email list with a newsletter or a link to your blog, or YouTube/ Facebook Live type of posts.

The interaction on social media has shifted from text based to video based messaging, especially over the past six months, which can make your unique central message stand out or get overlooked by an audience that seeks something else.

The most important aspect for the individual business owner or independent contractor to keep in mind is that you are not going to reach everyone. You are not going to be “all things to all people”, and a quick fact here: you do not want to be. The objective should be to have an idea of your target audience: who do you want to reach?

The next step is obviously: how are you going to reach them? You are not going to join a Facebook group for middle aged men if your target audience is 22 – 25-year-old new entrants into the workforce. The key is to find direct avenues to where that audience spends time: Instagram, a YouTube channel, or hosting a Facebook Live event.

The communication that you have with your target audience should be more about teaching than selling. A good general rule of thumb is that people are skeptical of everything and do not like being “sold something”. The more viable pathway is to provide a message that teaches, helps, or inspires your target audience.

The goal of clear communication of your message should provide direct and concrete ways that the other party can benefit from the interaction or from your business services.

In this age of social media updates when somebody eats a cheeseburger, or publishes a book, or takes a vacation. It has invariably become very self-focused, very individualized.
It is in this light that this next point is very important: beware of self-promotion. The social media/online profile of some people I have worked with in the past has had tendencies to go toward the self-promotion route. It is a dangerous point to which there is no going back.

The end result once you get labeled as a self-promoter is very detrimental to your business or your practice, or whatever you are trying to achieve. That does not “play well” with people. It can alienate you from developing a base of followers or a target audience of potential clients.

It is far more positive to share news about your business or your practice by remaining humble and coming from a place of gratitude. This is not only the right way to conduct yourself, but it also helps to foster better and more genuine connections to others in your network.

That ties into my final point on this topic, and that is to build trust and rapport with your target audience. This is done over a period of time. It is done through direct and authentic communication. The old principle that we all learned in Kindergarten: be yourself.

In my experience, going into an interaction with a group of potential clients/customers I have had far more success when I “showed up” as myself. In the instances when I felt like I was not going to get a contract or a writing assignment unless I had different experience, those situations never worked out well.

I have had interactions with people where I went years without asking them for anything. In this way, I built a true relationship and trust with them, and they were far more willing to help me in those situations.

I have learned from those experiences and I resist that sometimes natural human instinct to “go for it” by returning to the person that I am, and presenting my talents and skills: what I can “bring to the table”. In the event that is not enough, well it was not meant to be, and the focus shifts to who I can help and who I can work with in a positive way.

In summary, the best way to communicate a marketing message through “the noise” is to find out where your target audience spends their time to reach them effectively, being okay with the fact that you cannot be “all things to all people”, be clear by getting to the point, teach versus selling something, and build trust with your target audience. I hope that this advice helps you to build your own personal brand and market your message accordingly to reach people in a positive way.

Happy 4th of July

Happy 4th of July to all of you and your families. I want to thank you for your support of this blog. I really appreciate the feedback after posting on this site for over five years now.

The birthday of America is a special day, and for all of the service members in our military forces I thank you in a special way. Thank you for your sacrifice for us, so that we may live in peace and freedom.

I just finished recording a 4th of July podcast for Life Coach Radio Network. Some of you know that I host a podcast series called, “Undivided” and the show is one year old now. It has been a blessing to reach people with messages of hope, unity, harmony and peace.

My latest episode was on America: Individualism versus Community. Many people think that individualism is a “good thing” and certainly individual freedoms are the core of American society and should be celebrated.

However, it has come at the expense of our communities and our sense of community. We have lost that collective and shared responsibility for one another, that sense of community, was once a bedrock of American society.

There are many causes for that disconnection: technology, the economic phases, and other sociological situations. The podcast looks at the role of the individual contrasted against the collective. It provides concrete ways to move beyond your own individual focus and find pathways to increased community involvement.

I invite all of you to listen to my podcast and I hope it helps you to foster better connections to your community. That is how we can truly move America forward in unity and harmony.

Please use this link to listen:
http://www.blogtalkradio.com/lifecoachradionetwork/2018/07/03/undivided-episode-25–america-individualism-versus-community
Thank you all for your support. I wish you and your families a safe and Happy 4th of July!