How Dr Pepper took on Pepsi to become the new #2 soda.
“Coke vs. Pepsi” has been over-explained.
Consumers were forced to take a side during the cola wars, documentaries were filmed, articles were written…
But nobody saw Dr Pepper coming 👀
They distanced themselves from the cola wars and leaned into differentiation to stand out. It didn't start out that way though.
Despite first being served in 1885 (one year before Coca-Cola), Dr Pepper didn’t see immediate success like Coke and Pepsi did.
Their messaging was by-the-books and similar to other sodas at the time. They also had limited distribution compared to Coke and Pepsi, focusing more on Texas and the surrounding states.
(this was common for sodas at the time, as many bottlers that worked with Coke and Pepsi were barred from partnering with competitors)
But in the 1960s, they got their first big win by differentiating.
They argued that they weren’t a “cola" and were able to legally open up PepsiCo and Coca-Cola bottlers—expanding distribution across the country.
And that’s where things get really interesting.
They continued marketing themselves as an alternative to colas throughout the 1970s, and business boomed. So much so that in the 1980s, Coca-Cola tried acquiring them.
But after the deal was blocked by the FTC, Dr Pepper merged with 7Up instead—another highly differentiated soda, famous for their “Uncola” campaign.
Dr Pepper didn't completely remove itself from colas though. In fact, it partners with PepsiCo to distribute its brand to restaurants.
Why? Most restaurant chains sign exclusivity contracts with either Coca-Cola or Pepsi in exchange for a discount. By partnering with PepsiCo for distribution, Dr Pepper can reap the benefits of wider distribution without forcing restaurants to serve their soda exclusively.
Today, Dr Pepper is manufactured and distributed under Keurig Doctor Pepper and is clearly showing no signs of slowing down.
