Dr Pepper Snapple Takes Strategic Step Away From Soft Drinks

In a move that signals a strategic decision to diversify its product line away from sugary soft drinks and toward healthful beverages, Dr Pepper Snapple Group (DPS) said it will acquire Princeton, N.J.-based Bai Brands, LLC. Bai’s better-for-you product lineup includes high-growth premium antioxidant infused beverages such as Bai Bubbles, Antiwater, and Cocofusions. The cash price of $1.7 billion includes a tax benefit of about $400 million financed through new unsecured notes and short-term commercial paper. DPS invested in Bai in 2015 and has been a distribution partner since 2013. DPS CEO Larry Young said the relationship with Bai “contributed greatly” to its allied brand portfolio in the last six years.