Imagine being a kid being treated at your favorite restaurant and you order up your favorite food and ask for your favorite drink, a Dr Pepper. The server says they don’t have it. You’re stumped. Then your parent, now acting as interpreter, restates the problem to you as the wheels of commerce continue to slow as you try to solve your problem “what do I want instead of Dr Pepper?” Of course you pick something. But you walk away wondering to yourself or out loud why you can’t have a Dr Pepper. To you, Dr Pepper is everywhere but here. Its delicious, and it should be here too. Maybe somebody should tell the restaurant about it.
Of course they already know. The child’s simple problem had been made complex by a soda war that may have seemed to make sense to great corporate leaders for over 100 years, but in reality, never did.
For decades Dr Pepper drinkers have been denied their delicious beverage at fountains across the universe. Vendors, especially Coca-Cola, have strictly enforced aggressive agreements with restaurants to only sell Coke products, keeping Dr Pepper out. Dr Pepper Snapple Group, Inc. (NYSE: DPS) today announced that it has agreed to license certain brands to The Coca-Cola Company (NYSE: KO) on completion of KO's proposed acquisition of Coca-Cola Enterprises' (NYSE: CCE) North American Bottling Business. This means those restaurants that couldn’t sell Dr Pepper products now will be able to (after the completion of the acquisition).
The restaurants will attract more customers who had been staying away based on soda preferences, they will sell more soda especially to loyal Dr Pepper lovers, they will make their customers happier, those customers will return more frequently, sales will increase for restaurants and obviously for Dr Pepper as well as Coke and money can now flow like the fountain it should have been so long ago.
It’s a great idea. Why does this idea make sense in the year 2010 that didn’t make sense in 2000 or 1910? What arcane business practice do you continue that you should change?