Optimize Your Pet Food Distribution: Learn from Dr Pepper's Success (and Risks)

What do pet food and soda have in common? Both navigate the complexities of distribution. Dr Pepper has achieved an enviable position in the highly competitive soft drink industry by adopting a hybrid distribution model that blends self-distribution with third-party partnerships—most notably with its biggest competitors, Coca-Cola and PepsiCo. However, This unconventional approach comes with its own set of risks, mirroring some of the challenges pet food companies face. 

A Hybrid Distribution Model That Delivers Results 

Unlike Coca-Cola and PepsiCo, which manage their own bottling and distribution networks, Dr Pepper relies on a franchise bottling system, allowing both Coca-Cola and PepsiCo bottlers to distribute their products. This arrangement enables Dr Pepper to tap into the established infrastructure of its rivals, ensuring the national availability of its products without the need for massive capital investments in bottling facilities.   

Similarly, pet food brands often rely on established distributors, retailers, or online marketplaces. This allows for wider market penetration without the immediate need for extensive infrastructure. However, this can leave brands open to conflict with prioritization and loss of control—especially around pricing, promotions, product placements, and disruption to distribution.  

Market  Reach 

In markets where Keurig Dr Pepper (KDP) has direct control, including 30 states and Canada, it manages its distribution and autonomy over pricing and promotions. However, in regions where KDP lacks an immediate presence, other US states, and internationally,  it leverages the vast networks of its rivals to distribute its beverages. This strategy has enabled Dr Pepper to maintain a strong foothold across the U.S., ensuring its products reach consumers efficiently while minimizing operational overhead.  While allowing for expansion into international locations including the UK, Japan, S.Korea and Europe.  

Prioritization 

The benefits of this model are clear: Dr Pepper gains nationwide reach without bearing the full burden of managing an extensive distribution network. However, this approach is not without risks. Since Coca-Cola and PepsiCo bottlers prioritize their own products, Dr Pepper can sometimes be deprioritized, leading to inconsistencies in availability or slower adoption of new products in certain markets. Additionally, any shifts in the agreements between these companies could have significant repercussions on Dr Pepper’s distribution capabilities. 

The Impact of Packaging Innovation and Distributor Influence on Consumer Appeal 

Beyond its distribution prowess, Dr Pepper has leveraged packaging innovation to enhance consumer appeal and drive sales. In addition to experimenting with different bottle designs and formats to capture interest, Dr Pepper’s packaging can also vary depending on which distributor—Coca-Cola or PepsiCo—is handling the product in each region. Dr Pepper's packaging innovations and regional variations highlight the importance of brand presentation and adaptation. Similarly, pet food brands must innovate, maintain brand consistency, and respond to consumer trends/demands. 

Differences in bottle appearance and labeling often reflect the distributor’s unique manufacturing and bottling processes. While the core branding remains consistent, subtle variations in bottle shape, label style, and even cap design may be noticeable to keen-eyed consumers. This adds a layer of complexity to Dr Pepper’s packaging strategy, allowing for localized flexibility while maintaining brand integrity. This is true for pet food brands when expanding across multiple channels. 

Recent innovations, such as sleek 20-ounce bottles and mini cans, have resonated particularly well with younger consumers seeking convenient, on-the-go options. Mini cans have gained traction among health-conscious buyers looking for portion-controlled choices. In pet food, convenient formats like single-serve pouches or resealable bags cater to modern pet owners, mirroring Dr Pepper's newer options. 

By constantly refreshing its packaging while balancing distributor-driven variations, Dr Pepper has successfully maintained relevance in a crowded market. This multifaceted approach helps the brand appeal to diverse segments, from health-conscious consumers to those seeking novelty and variety, all while navigating the complexities of a dual-distribution system. In pet food, this can be seen with the rise of specialized diets and sustainable packaging reflecting the evolving market. 

Challenges and Future Considerations 

Dr Pepper’s hybrid distribution strategy has been instrumental in its success, but it presents a double-edged sword. Because Dr Pepper relies on Coca-Cola and PepsiCo bottlers in many regions, it remains vulnerable to potential shifts in these partnerships. Any change in contractual agreements or priorities among its bottling partners could disrupt the seamless distribution network that Dr Pepper currently enjoys. 

To mitigate these risks, Keurig Dr Pepper is actively expanding its direct-to-consumer (DTC) capabilities and e-commerce presence, which provides greater control over product availability and pricing. Conversely, pet food brands that invest in DTC models gain greater control over their supply chains and customer experiences. This allows for targeted marketing, personalized service, and direct customer feedback—all of which are crucial for building brand loyalty. 

A Double-Edged Sword: Benefits and Risks  

By partnering with Coca-Cola and PepsiCo bottlers, Dr Pepper has maintained a consistent presence in the market while focusing on brand development and innovation. However, this reliance on its competitors for distribution introduces a layer of vulnerability that could pose challenges in the future. The most significant risk Dr Pepper faces—potential formula exposure to competitors—has a parallel in the pet food industry. While pet food formulas may not be as closely guarded as a soft drink recipe, the reliance on third-party manufacturers or co-packers can raise concerns about intellectual property protection. 

 Perhaps the most overlooked and potentially dangerous risk in this arrangement is that Coca-Cola and PepsiCo bottlers have access to the Dr Pepper formula. While the exact recipe remains a closely guarded secret, bottlers still handle the product at various stages. Though legal safeguards and confidentiality agreements are in place, the mere fact of intellectual property with a competitor poses a latent threat. If either Coca-Cola or PepsiCo were to leverage this knowledge to develop a competing product or undermine Dr Pepper’s position, it could create a serious competitive disadvantage.  

Just as Dr Pepper's bottlers have access to product composition, pet food manufacturers must ensure robust confidentiality agreements and quality control measures to protect their formulas. Additionally, competitors may gain insights into production processes and ingredient sourcing through shared facilities or distribution networks, posing a risk to brand differentiation. 

Conclusion 

As the beverage landscape continues to evolve, Dr Pepper’s ability to adapt its distribution strategy, invest in DTC and e-commerce channels, and expand globally will determine whether it can maintain its hard-earned position in the U.S. soft drink market. While its current approach has propelled it to the top tier of the industry, the next chapter of Dr Pepper’s growth will hinge on reducing its dependence on rivals while building a more resilient, independent distribution network. 

Like Dr Pepper, pet food brands must carefully balance the benefits of wider distribution with the risks of losing control and exposing proprietary information. By adopting a strategic and adaptable approach, pet food companies can navigate the complexities of the market and secure long-term success.  

Don’t leave your pet food brand vulnerable. At BSM Partners, we can help analyze distribution strategies and help find a balance to protect IP while maximizing reach in distribution.  

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About the Authors

Lee Ann Hagerty is Director of Customer Enrichment and Consumer Insights on the BSM Product Innovation team with 29+ years in the pet food industry, working for Iams/Eukanuba, Procter & Gamble, and Mars Pet Care. She brings a unique combination of project management skills with consumer insights, product design, animal nutrition, and sensory science which drives an in-depth understanding of the pet and consumer. Lee Ann has a passion for helping dogs. Over the last year and a half, she has fostered over 22 dogs. Many of them were senior dogs who had lived their entire lives outside as hunting dogs. She has been a foster pet parent for many years, and it brings her great joy to see these pets find fur-ever homes where they live with families indoors with love and care.

Dr. Stephanie Clark is a board-certified companion animal nutritionist, veterinary nurse and nutrition specialist, a pet owner, and a mother who had a baby during the formula shortage. She has spent the past almost two decades dedicating her career to the welfare of pets, livestock, and wildlife. She currently provides nutritional consultations for veterinary clinics and works in the pet food industry.