Wait, is Dr. Pepper Actually a Coke Product?

Well, I will tell you this – the answer will surprise you, much as it did me. Now, I know that many of us love Dr. Pepper. It is kind of a peppy soft drink. Some of us would argue that it tastes like prune, licorice, and cherry – but I like it anyway. Say what you want.

What I didn’t know though is this – Dr. Pepper originated in Texas and it is the fourth most popular in the United States, behind Pepsi and Coke. And interestingly, as my research tells me, it is partly owned by both these two giants – Pepsi and Coca Cola! I was always under the thought that only one company owned this drink- and I couldn’t be more wrong.

I will tell you why, but first, tell you what made me fall in love with Dr. Pepper.

1. For one, I love its origin story

It is believed that in the late 1800s, Dr. Pepper was created by a pharmacist named Charles Alderton in the city of Waco. In 1963 it achieved national prominence and the court declared that it is not cola and hence could be bottled by many bottlers. 

It was a very difficult process because Coke and Pepsi were trying their best to not let any new competition come into the picture. After the court’s ruling the brand became a big hit.  

I heard from historians that it was such a problem before the ruling that Dr. Pepper once even tried to modify some things and sell their beverage as a warm drink but that did not work out and finally, they settled on a cold drink, which is how it is consumed to date.

Keurig Dr. Pepper is the parent company of Dr. Pepper which is the seventh largest in the United States in the category of beverage brands. It has over 100 distribution centers and employs close to twenty-five thousand people.

Today, my research tells me that they are owned by Australian company JAB Holdings and American company Mondelez, they also own other brands like Cinnabon, Canada Dry, and Kahlua.  It’s also cool because I don’t think you have many drinks like this one – which has so much of variety – even after being sort of a single drink.

The Icy Whiz team talked to Kayden Roberts, the Chief Marketing Officer at CamGo, about the unique history and complex ownership structure of Dr. Pepper. Here is what she said:

“The unique history and intricate structure of ownership that foreshadowed Dr. Pepper had established the brand’s importance culturally and across international markets as a riveting case study into brand evolution and consumer loyalty.

Such complexity in the ownership structure of Dr. Pepper’s licensing and distribution across many companies and regions has been vital for market penetration and adaptability.

Dr. Pepper is owned, but not entirely, by any beverage conglomerate—a situation totally unlike many of the rest of the competitors.

Culturally, it has also been able to align itself with feeling unique and being comfortable in one’s skin—a very well-played role for those who feel they do not conform.

The marketing campaigns are, for the most part, almost always about the uniqueness of the product, urging freaks to “Be a Pepper” and celebrate their weirdness. Messages like these bring along with them a loyal fan base, right through the generations and across geographies.

Not just a drink but a cultural icon—this kind of relevance and heritage position is something only very strong brands can claim. Dr. Pepper best represents a balanced ideal of tradition and innovation that is globally relevant.

The brand has effectively localized flavor while keeping the mother brand flavor constant across markets.

The company has brilliantly used limited-edition flavors and local influencers and events that have positioned the brand. Dr. Pepper is a striking case—a brand of a well-made product and a strong brand identity in an age taken over by health-aware and conscious trends.

In other words, Dr. Pepper is just a great brand; it has been able to endure historical turns and ownership structures.

Dr. Pepper managed to maintain its place; by sticking to its roots, it maneuvered the issues of global distribution for years with an ever-evolving consumer taste and was still on top of mind as an iconic brand.”

2. I love The Recipe of Dr. Pepper

And believe me, this recipe isn’t simple. It is believed to be composed of 23 ingredients, although the recipe remains a secret. Where is the recipe hidden, you ask? It is said to be safe in Dallas, in a bank safe.

Now, I will remind you that in 2009 a recipe did come out which was said to be for “D Peppers Pepsin Bitters.” And there was a lot of controversy in the news. After much hustle and bustle, the company claimed that the recipe found was of some other product and not their iconic beverage. 

3. I like that I can try out Different Types of Dr. Pepper

Although it is now known very widely, the beverage has three types, and I hope you get to taste all of them.  

• Dublin Dr.Pepper – Primarily sold in Texas and nearby places. The most popular flavor is Raspberry. It is even produced in Dublin. 
• Diet Dr. Pepper – This is the calorie-free version of the beverage as they use Aspartame in the production, although available nationally it is largely sold in central and south Texas. The most popular flavor is cherry. 
• Original Formula Keurig Dr. Pepper – For anybody living not in Texas, this is the drink you consume. 

Corrie Duffy, Chef and Food Blogger at Corrie Cooks talked to the Icy Whiz team about the cultural significance and market presence of Dr. Pepper. Here is an excerpt from the interview:

“Dr. Pepper’s cultural significance and global market presence are deeply influenced by its unique history and complex ownership structure. Originating in Waco, Texas, Dr. Pepper embodies American innovation and regional flavors.

Its marketing campaigns, like “What’s the worst that could happen?” and collaborations with cultural icons, resonate across generations, shaping its brand identity.

Despite mergers and acquisitions, Dr. Pepper maintains brand consistency, adapting to consumer preferences while preserving its core identity.

Its diversified product portfolio, including Diet Dr. Pepper and Dr. Pepper Cherry, captures diverse consumer bases, ensuring relevance in a competitive market. Dr. Pepper’s loyal fan base and nostalgic appeal contribute to its enduring popularity, symbolizing moments of celebration and enjoyment for consumers globally.

Through strategic branding and innovation, Dr. Pepper has established itself as an iconic beverage brand with deep cultural significance.”

4. Coke vs Dr. Pepper 

Both beverages are pretty similar, which is why in the beginning Dr. Pepper had to work very hard to declare that it does not taste like Cola.

Both beverages contain caffeine, natural flavors, corn syrup, sugar, and caramel color. But if you’re like “I taste the fizz more in Coke”, I will tell you why.

I will say that this is because Coke has a higher level of sodium content, as well as caffeine and even more carbonation.

Both the beverages primarily differ in the taste undertone, while Coke has an undertone of citrus fruits and the other one has a little more sweet fruits. The packaging and the bottle sizes are also distinctive. 

5. Now let me tell you Who Owns Dr. Pepper

And the answer to this very complicated question will surprise you. Although Dr. Pepper is owned by Keurig Dr. Pepper, PepsiCo and Coca-Cola own some parts of the operations in countries other than the United States.

So, there are different parts of the brand, and these are owned by different companies. Plus its rights vary around the globe. 

Keurig Dr. Pepper produces coffee-making equipment along with beverages. Some of the brands under it are Sunkist, Snapple, and 7Up to name a few.

And well, we can add to the complexity here. The ownership is not under a singular party rather it is between some. Dr. Pepper has bottlers outside the US also and some of these bottlers are owned by Coca-Cola and PepsiCo, hence the confusion.

I asked around for the issue. Sources tell me that the primary cause of the confusion arises due to the problems of bottling. They “do not support a robust system in-house that can handle all the processes in the production cycle“, so they have contracts with other companies for these processes. 

As we move outside the States, the situation gets more complicated. In countries like New Zealand, Canada, and Australia PepsiCo owns the brand and in Europe, Coca-Cola owns the rights of the brand. And by owning the rights it means that they bottle, distribute and work on the sales of the product. 

This further means that when we ask if Dr. Pepper is a Coke Product, then it is not. This is because it is not a brand under the Coca-Cola company as it does not own the brand Dr. Pepper, the recipe, or the intellectual property, all that remains with the parent company itself.

Similarly, Pepsi which is a brand under PepsiCo does not own Dr. Pepper. It does not even list it on its website because of the same reason stated above.

We interviewed Kenan Acikelli, CEO of Workhy, on Dr. Pepper’s unique history and ownership influence. Here is what he had to say:

“I believe Dr. Pepper’s rich history and complex ownership structure have significantly shaped its cultural impact and market presence. I’ve always found its origins intriguing. Created in 1885, it predates Coca-Cola, which I think gives it a unique position in the soft drink market.

I remember reading about its early marketing as a brain tonic, which I think set the stage for its distinct brand identity.

I’ve noticed that Dr. Pepper’s ownership journey, from independent bottlers to being part of the Dr Pepper Snapple Group, and now under Keurig Dr Pepper, has influenced its market strategies.

I think this complex ownership has allowed Dr. Pepper to maintain a unique identity while leveraging the distribution power of larger conglomerates. I’ve seen how this has helped it penetrate different markets more effectively.

I’ve also observed that Dr. Pepper’s marketing has always emphasized its uniqueness. I remember their “Be a Pepper” campaign, which I think brilliantly reinforced its distinctiveness. I believe these marketing efforts have made Dr. Pepper a beloved brand with a loyal consumer base.

I’ve seen its quirky, non-conformist image resonate with people who prefer something different from the mainstream.

I think Dr. Pepper’s ability to stay relevant while maintaining its unique flavor and brand identity is a testament to its strategic management and deep understanding of consumer behavior. I’ve seen how it continues to thrive by appealing to both nostalgia and the desire for novelty.”

6. But then How did Dr. Pepper Grow?

With hurdles like Coca-Cola and Pepsi on the way, the brand had to work hard on their marketing so they started with creative punchlines like ‘Drink Slow, Doctor’s Orders.

They also brought celebrities on board for promotion like Neil Patrick Harris and Kelsey Grammer.

They even used ongoing trends roped in Marvel characters like Iron Man under their marketing strategy. I hope you remember the Iron Man ads with Dr. Pepper – they were pretty popular in their time. But as I say, and my mother says, you can “achieve the impossible”, if you set your mind to it.

The complete ownership argument is puzzling and a single owner can not be stated. The ownership, rights, operations, sales, and other processes are handled by different brands in different regions of the world. 

Guest Author: Saket Kumar

Last Updated on May 29, 2024 by soubhik