Tuesday, March 31, 2009

DR Pepper Snapple Jargon Challenged

Just a few days ago Dr. Pepper Snapple (DPS) released Q4 and year end results. They continued on the corporate auto pilot of jargon and rhetoric. They immediately refer to macroeconomic deterioration and then throw in the proverbial term "market conditions" for good measure. They then proceed to share with investors that they are experiencing weak demand, finding the at home trend to be not working in their favour and their overall value proposition is not resonating the consumer.

The executives are over complicating the issue. times are bad. Its easy to not spend money on a Snapple. So what are you going to do? They make noises about better marketing. fine but what about cost reduction. Can Snapple and Dr Pepper skinny down and become financially attractive. If this management group cannot do it the next one will.