19 Jul 2024 Dr Pepper overtakes Pepsi as No 2 soda in America
After years of rivalry, Dr Pepper has surpassed Pepsi to claim the title of the second most popular soda in the US, following Coca-Cola.…
Recent insights from Beverage Digest indicate that while both brands have battled for this position for decades, Dr Pepper’s ascent is attributed to a gradual increase in popularity since nearly the year 2000.
This 139-year-old brand has thrived thanks to significant marketing efforts, innovative flavours, and a distribution strategy that places it on more soda fountains than any other beverage.
Over the last 30 years, Coca-Cola has maintained a stable market share of around 20%, fluctuating slightly each year. This figure is more than 10% higher than the next four contenders: Dr Pepper, Pepsi, Sprite, and Diet Coke.
The distinct blend of 23 flavours in Dr Pepper, particularly the cherry and vanilla notes, has likely contributed to its ability to overtake Pepsi in 2024.
In a contemporary food landscape characterised by diverse flavours and changing brand loyalties, particularly among the Gen Z and millennial demographics, this shift in the rankings reflects evolving consumer preferences rather than simply generational differences.
“Dr Pepper has successfully set itself apart through impactful marketing that highlights its unique taste and identity,” commented Andrew Dickow, MD of Greenwich Capital Group and leader of its food and beverage sector. “This approach resonates with younger consumers who are looking for alternatives to standard cola options.”
Dickow pointed out Dr Pepper’s impressive 40% increase in brand value compared to Pepsi’s relatively flat performance. He emphasised that many younger consumers desire “something different from the typical cola flavour”.
In the American soft drink market, consumers typically align with either the Coca-Cola or Pepsi camp, choosing between these two brands at various venues, from restaurants to bars. Both companies have their distribution networks and engage in an ongoing struggle for consumer loyalty.
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Interestingly, Dr Pepper, under the ownership of Keurig Dr Pepper, maintains careful partnerships with both competitors, ensuring its presence wherever Coke or Pepsi can be found.
“Although Coca-Cola remains the top player, Dr Pepper’s rise indicates a shift in consumer tastes,” Dickow added. “Coca-Cola must continue innovating with new flavours and healthier choices to stay ahead.”
Andrew Springate, chief marketing officer at Keurig Dr Pepper, highlighted that the brand is seeing the fastest growth among Gen Z, appealing to those who seek indulgent and unique flavours.
Some background to Dr Pepper
Dr Pepper was created in the 1880s by the American pharmacist Charles Alderton in Waco, Texas, and was first nationally marketed in the United States in 1904. It is manufactured by Keurig Dr Pepper in the US and Canada, by The Coca-Cola Company in the UK, Japan, and South Korea, and by PepsiCo in Europe. Variants include Diet Dr Pepper and, beginning in the 2000s, a line of additional flavours.
Although Dr Pepper has similarities to cola, the American FDA has ruled that Dr Pepper is not a cola, nor a root beer, nor a fruit-flavoured soft drink. Rather, Dr Pepper is said to be in a category of its own kind, called “pepper soda”, named for the brand. Other soft drinks in this category, such as Dublin Original and Pibb Xtra, have a similar flavour profile.
Dr Pepper is the second highest-selling carbonated soft drink in the US, and the sixth highest-selling in the UK.
Source: The Food Institute