As of this week, Dr Pepper distribution is shifting away from Coca-Cola affiliated fountains in select markets as Keurig Dr Pepper takes back control of its own supply chain, all thanks to a Texas court ruling that ended the long-standing distribution deal between Keurig Dr Pepper and Reyes Coca-Cola Bottling.
While some fountain locations may experience temporary disruptions during the transition, Keurig Dr Pepper emphasizes that Dr Pepper will continue to be widely available at fountain locations across America. The change affects the distribution method—moving from Coca-Cola’s trucks to KDP’s own distribution network—not the availability of the beverage itself.
The court order, which went into effect Monday, gives Dr Pepper full control of its own supply chain for the first time in decades and creates an opportunity for Coca-Cola to promote Mr. Pibb in its beverage lineup.
First launched in 1972 as a direct Dr Pepper rival, Mr. Pibb has always lived in the shadow of its better-known competitor; it’s the kind of soda you only notice when Dr Pepper runs out. Now, it’s having a moment.
Coca-Cola quietly relaunched Mr. Pibb earlier this month, complete with updated packaging and a new pitch – “high caffeine, bold spice.” Each 12-ounce can packs in 41 to 54 milligrams of caffeine. That positions it closer to the energy-drink market than the nostalgic soda aisle.
“It’s an intensely flavored, spicy cherry alternative,” Coca-Cola said in a statement, leaning into the idea that Mr. Pibb isn’t just a stand-in, but it’s a comeback.
The split marks the end of a long and complicated distribution arrangement between two giants. For years, Coca-Cola handled the fountain distribution of Dr Pepper across several markets in the U.S., despite the brands being corporate rivals. The arrangement worked until Keurig Dr Pepper decided it wanted its brand back under its own control.
It’s important to note that the shift won’t affect bottled or canned Dr Pepper sales at retail stores. While the distribution method is changing in certain markets, KDP expects minimal impact to consumers and anticipates Dr Pepper will remain widely available at fountain locations.
In a statement, Keurig Dr Pepper said: “Recent reports on changes to Dr Pepper availability are highly misleading. We are excited to take back Dr Pepper distribution onto our own trucks in a few key geographies, and we anticipate little to no impact to consumers. Dr Pepper is in high demand – the most popular beverage with Gen Z – and it will continue to be at your favorite retailer and to be one of the most-widely available fountain beverages in America.”
For devout Dr Pepper drinkers at locations where fountain options change during the transition, that could mean temporarily adjusting to alternatives like Mr. Pibb.
The timing is uncanny. Coca-Cola’s cane-sugar “Classic Coke” is just starting to roll out, and now Mr. Pibb, its long-forgotten sidekick, is suddenly back in the spotlight.
Whether the move helps Coca-Cola promote Mr. Pibb as an alternative option or simply reminds people of their Dr Pepper preference remains to be seen. But for the first time in a long while, Mr. Pibb has a stage, and the soda wars just got even more interesting.
Editor’s Note: This article has been updated to clarify that the distribution change involves Keurig Dr Pepper taking direct control of Dr Pepper distribution in select markets, and does not represent a removal of Dr Pepper from fountain availability.
Source: Bloomberg