Wednesday, January 18, 2012
Dublin Dr Pepper
Dublin Dr Pepper
Put
Dr Pepper in any other bottle and it’s Plain O (Plano) sugar water, but put it
in a Dublin Dr Pepper bottle and it becomes a magic elixir worthy of its 10, 2
and 4 dosage instructions.
However,
the godfather of all Plain O sweet drinks declared, “Enough! We’ve got to
protect the integrity of our trademark. How dare Dublin keep putting their name
on those little bottles! Who do they think they are, anyway! Just because
they’ve had it all to themselves for 121 years, they think they have a right to
it. I’m tired of them rubbing their success in our faces -- we need to show
them who’s boss: We’ll sue them.”
Last
June the boys from back east filed a lawsuit against Dublin Dr Pepper in federal
court. Dr Pepper-Snapple Group (DPS) alleged that Dublin was selling Dr Pepper
beyond the 44-mile radius territory designated in its franchise agreement. At
the time of this agreement, back in the 1920s, Dublin could have asked for a
larger area, but at that time a 44-mile circle seemed awfully big for Dublin’s
little plant. The suit also sought to end what it said was the bottler’s
“unauthorized use” of the term “Dublin Dr Pepper” on product packaging and on
other merchandise. DPS asked the court to terminate its licensing agreement with
Dublin Dr Pepper and to prevent sales of the beverage on Dublin Dr Pepper’s
website and via its toll-free number. It should be noted that at one time the
corporate fathers had approved the use of “Dublin Dr Pepper” on cans and
bottles.
The
Dublin company began selling Dr Pepper in Texas in 1891 and has enjoyed a good
run at it. Business was good in its territory, but when 800 phone numbers and
the internet became such good purchasing partners, business literally boomed.
The Dublin management had to limit customer orders to only 20 cases. The drink
was so popular that people traveled to Dublin from all over Texas, the nation,
and even foreign countrys to purchase a supply of their favorite beverage.
One
would naturally think that the parent would be proud of Dublin’s success.
Dublin was never a threat to the financial well-being of the Plano-based giant.
Dublin Dr Pepper, with about $7 million in annual revenue, sold less than one tenth
of one percent of Dr Pepper’s $5 billion annual sales. The big guy from Plano
today controls a portfolio of brands that includes Sunkist soda, Mott’s Apple
juice and Snapple tea. So what was under the saddle blanket that gave Plano’s
ride such discomfort?
Since
Plano isn’t saying anything outside their allegations of wrongdoing against
Dublin, they could have been unhappy with the success Dublin was having by the
continued use of the two alleged infractions. Historically, big Dr Pepper has
not had the same success over the long haul as Dublin.
Dr
Pepper became insolvent in the 1980s, prompting an investment group to take the
company private. Sometime later the same company acquired Seven Up from Phillip
Morris. About the same time Coca-Cola attempted to acquire Dr Pepper but was
blocked from doing so by the Federal Trade Commission.
Twice,
in 1951 and 1972, Dr Pepper sued Coca-Cola for selling their colas for a nickel
and for trademark infringement over “Peppo” and
“Dr. Pibb” names. Finally, Mr. Pibb was approved.
Over
the years the two companies had a good working relationship. For those at Dr
Pepper who knew and remembered Billie Kloster, from the time he was an employee
to when he was the owner of Dublin Dr Pepper, there were no complaints --
nothing but respect, admiration and cooperation. However, those days and those
people are gone, replaced by a new group of savvy business people, who know
only one thing-- the bottom line rules. There can be no give and take; Dublin
cannot be allowed to prosper at daddy’s expense. Buying them out will
eventually allow Plano to have 100 percent of the pie, so that makes the
acquisition good business. For Dublin and the 18 men and women who lost their
jobs, that’s tough luck -- just the cost of doing business.
Understandably,
the folks in Dublin were demoralized when they first heard the news. At a
meeting Tuesday at the “new” Dublin Bottling Works, there was a different, more
positive attitude taking over. As a group, the employees and townspeople
decided to let go of their hostility and move forward.
What’s
done is done, Dr Pepper is gone, but they still have Dublin Bottling Works and
several drinks to bottle and sell, virtually anywhere they like. Dr Pepper took
away all those restrictions when they purchased all things Dr Pepper, leaving
Dublin free to do business as usual, just without their famous drink.
“The
meeting was upbeat,” said Karen Wright, director of the Dublin Economic
Development Corporation. “Folks said there is no use being negative about all
this, there is a lot to be positive about. We still have some great drinks to
market. If we get behind them and push them like we have Dr Pepper all these
years, we’ll be okay. Our trademark beverage is gone but its history is not.”
Dublin
Bottling Works (the original name of the plant when it was formed in 1891) will
produce Triple XXX Root Beer, Big Red, Nu Grape, as well as some others
previously bottled at Dublin. Things are looking up already in Dublin.
If
the folks in Dublin can feel this positive, so can we. If we like corporate’s
sugar Dr Pepper, go ahead and buy it. But when there’s a choice between Dr
Pepper and Triple XXX Root Beer, Big Red or Nu Grape we can choose. As for me,
I like a root beer float.
By
the way, in case anyone has wondered why I kept leaving off the period after Dr
-- it wasn’t a mistake. The period (full
stop) after “Dr” was discarded for stylistic and legibility reasons in
the 1950s.
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