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, Mexico, and the Caribbean. In 2009, U.S. sales constituted 90% of total net sales. Although the company has a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSD) and noncarbonated soft drinks (non-CSD; including ready-to-drink teas, juices, juice drinks, and mixers), we believe that CSDs account for a significant
