• Business Week, Tuesday, October 20, 2009 10:51 AM

Dr Pepper is experiencing a surprising renaissance, Nanette Byrnes reports, bucking the industry trend of fizzling sales. While overall soda consumption dropped 3% in the first six months of the year, Dr Pepper's sales have risen by the same amount.

CEO Larry D. Young says the turning point came when Plano, Texas-based Dr Pepper Snapple Group was spun off from U.K.-based Cadbury in May 2008. Young was able to cut costs and invest the savings in building up his brands and distribution networks, spending more on quirkier and more plentiful advertising and new products.

"Coke and Pepsi, all they have to do is remind you why you like the brand. Dr Pepper has to tell you why you should drink this more," says Eric Hirshberg, president and chief creative officer at Deutsch LA, DPSG's agency. As much as the advertising helps, an even bigger coup was getting a fountain spigot in McDonald's 14,000 U.S. restaurants.

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