KDP Grows DSD Footprint With Dr Pepper Expansion
Keurig Dr Pepper (KDP) is zoning in on its route-to-market approach as part of five key pillars within the company’s strategic roadmap.
As a result, it has been investing in its direct-store-delivery (DSD) to unlock new expansion opportunities.
KDP is adding Dr Pepper to its DSD portfolio in key markets within California, Nevada and the Midwest.
The company expects to drive increased efficiencies across its DSD network to directly influence point-of-sale trends and generate halo effects that benefit other DSD brands, according to CEO Timothy Cofer, who shared details during the latest earnings call.
The move helps scale efforts already underway in those regions, he added, and will generally help grow the electrolyte offerings within the sports hydration business — including for brands Ghost and C4 — which is the fastest-growing subset of the category (up 30% in Q2) and benefits from DSD-enabled distribution expansion.