
In the event you did not get a free can of Dr Pepper on your commute to work Wednesday, then you may not be aware that Dr Pepper Snapple Group Inc. is now officially
independent from Cadbury plc as the former Cadbury Schweppes Americas Beverages unit begins trading on the New York Stock Exchange.
Continue reading below
The new beverage company, which is listed under the ticker DPS, opened at $25.20 a share, which is lower than the $30 expected. Many analysts have recommended the stock will underperform and have graded it as such or as a sell.
Meanwhile former parent Cadbury plc opened in New York at $50.13, down $1.57 from the prior close. Nonetheless, the company is trading higher then competitor the Hershey Co., which is trading above $38, but is trading under Wm. Wrigley Jr. Co., which is trading above $75. Mars Inc.'s acquisition of Wrigley prompted rumors that Cadbury may be bought out by Hershey or Kraft Foods Inc. (trading at $30).
It will be interesting to see how Dr Pepper Snapple does between an economic slowdown, the rising price of sugar and corn syrup, and a weakening of consumer demand for carbonated soft drinks.
Granted, the portfolio of products not only includes soft drinks like 7UP, Canada Dry, RC Cola and more, but also juices and teas like Mott's, Clamato, Hawaiian Punch, and of course Snapple. At least the company didn't choose to hand out cans of Clamato to celebrate its IPO. - Maria Woehr
See Dealscape: Cadbury drinks spinoff to induce takeover?
See Dealscape: Palmer: Kraft could divest brands to buy Cadbury
See Dealwatch: Confectioners: Mars, Wrigley, Cadbury and Hershey
See Dealwatch: Natural Tea could join Coca Cola
See Dealwatch: Coke thirsty for Glaceau
Comments
What the heck does this mean:
Meanwhile former parent Cadbury plc opened in New York at $50.13, down $1.57 from the prior close. Nonetheless, the company is trading higher then competitor the Hershey Co., which is trading above $38, but is trading under Wm. Wrigley Jr. Co., which is trading above $75.
On what basis are these trading higher or lower? Simply on the basis of actual $/share? What a worthless bit of info. Hope I'm missing something.