Dr. Pepper Buys Back Asian Snapple Rights from Mondelez
Dr. Pepper Snapple (NYSE:DPS) inked a deal on Monday with Mondelez International (NASDAQ:MDLZ) to reacquire the distribution rights for Snapple and other non-carbonated beverage brands in parts of the Asia-Pacific.
Terms were not disclosed.
The transaction gives the Plano, Texas-based soft drink maker the rights to distribute Snapple in Australia, Malaysia, Singapore, China, Hong Kong, Japan and South Korea. In Australia, Dr. Pepper will also have distribution rights for popular brands like Mott’s and Yoo-hoo.
The pact with Mondelez, a former entity of Kraft Foods known for food brands like Cadbury eggs, Oreos and Trident gum, gives the beverage giant a foothold in a rapidly growing region, allowing it to tap into those areas for future development.
“This agreement enables us to explore opportunities for expanding the presence of Snapple and other non-carbonated brands in an important region of the world,” said Jim Johnston, president of Dr. Pepper’s beverage concentrates and Latin America beverages group.
Dr. Pepper said the deal isn’t expected to have a material effect on its fiscal 2013 earnings.