Portfolio of brands, with good brand recognition; Good cash flow generation; and Moderate financial policies. Competitive North American non-alcoholic beverage market; Limited geographic diversity and inability to expand as the company does not own brands outside of U.S., Canada, Mexico, and Caribbean; and Exposure to volatile costs of raw materials. The ratings on Plano, Texas-based Dr Pepper Snapple Group Inc. (DPS) reflect its position as the third-largest soft drink company in North America, good brand recognition, and cash flow generation. However, DPS' relatively narrow business and geographic focus and participation in the mature and low-growth markets in which it competes somewhat temper these positives. DPS is a leading integrated-brand owner, bottler, and distributor of nonalcoholic beverages in the U.S., Canada,
