This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

15 Food Stocks Hit by Commodity Inflation

Stocks in this article: MKC DPS DRI CAG GIS HSY K MCD KFT SLE SBUX SJM PEP PNRA CMG

Dr Pepper Snapple

Dr Pepper Snapple (DPS)

Company Profile : Plano, Texas-based Dr Pepper Snapple is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a diverse portfolio of flavored carbonated soft drinks and non-carbonated beverages. Brands include Dr Pepper, Sunkist soda, 7UP, A&W, Canada Dry, Schweppes, Snapple, Mott's, Hawaiian Punch and Clamato, among others.

In late March Dr Pepper Snapple said that costs for plastic bottles and fuel to transport beverages have been rising as oil prices march higher.

Dr Pepper Snapple reiterated its forecast that total costs of goods will grow between 6% and 7% in 2011, though the recent spike in oil prices was not factored into that projection.

Oil prices affect the price of polyethylene terephthalate, or PET, the plastic used by companies like Dr Pepper Snapple to make soda bottles. Dr Pepper Snapple and others, like Coca-Cola (KO) and PepsiCo (PEP - Get Report), cannot hedge their prices of PET because the material is not traded like other commodities.

Dr Pepper Snapple intends to raise prices and implement other cost savings initiatives in an effort to offset higher costs. Some other initiatives include more efficiently spending marketing dollars, and shipping certain products directly to retailers.

3 of 16

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs