Beverage company, Dr Pepper Snapple Group Inc.(DPS) reported that it plans to buy back distribution rights for Snapple in Asia.
The company said that they plan to buy back Snapple’s distribution rights in Asia from Mondelez International. Although DPS’s business is primarily based in the U.S, the company is still the third largest U.S. soft drink producer behind Coca-Cola(KO) and PepsiCo(PEP).
DPS will now have distribution rights in Australia, Malaysia, Singapore, China, Hong Kong, Japan and South Korea.
The deal will allow DPS to grow in the Asian market and diversify its revenue beyond the U.S. The company also said that it has made a deal to acquire a bottling company in western U.S.
Dr Pepper Snapple Group shares were mostly flat during Wednesday morning trading. The stock has increased 16% in the past year.
The Bottom Line
Shares of Dr Pepper Snapple Group Inc.(DPS) have a 3.44% yield, based on Wednesday morning’s price of $44.14
Dr Pepper Snapple Group Inc.(DPS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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