Snapple sales rose 3% during Dr Pepper Snapple Group’s first quarter.

The US drinks company behind the 7UP, Sunkist and Dr Pepper brands, Dr Pepper Snapple Group (DPS), has posted a 5% lift in first quarter segment operating profit to $211 million (£107 million).

The results, which are the first unveiled by the company since it demerged from Cadbury this month, were generated by a 3% rise in net sales to $1.3 billion. Profits were helped by higher pricing, which offset sales volumes declines, DPS said.

Sales of non-carbonated drinks Snapple and Mott’s were particularly strong, up 3% and 6% respectively. Dr Pepper volume was down 2% whilst ‘core brands’ 7UP, Sunkist, A&W and Canada Dry declined 5%.

DPS President and CEO Larry Young commented on  the results: “We’re off to a solid start in 2008, having delivered good top- and bottom-line results while successfully achieving a number of key initiatives: we realized the benefits of necessary pricing actions taken in 2007, while still continuing to provide value to our consumers.”

Looking forward, Young expects the remainder of 2008 to be challenging. He said: “With escalating commodity costs and a slowing U.S. economy, 2008 is set to be a challenging year for the beverage industry as a whole… We remain alert to the impact commodity cost inflation is having on our consumers and the channels they shop. We are committed to executing our long term plans and investing in our brands.”

To read the financial results in full, click here ^[1]

By Natasha Piscitelli