PLANO (AP) - Dr Pepper Snapple Group Inc. filed a lawsuit against one of its bottlers Tuesday over what it says are license agreement violations.
The beverage maker said Dr Pepper Bottling Co. of Dublin, Texas, is selling Dr Pepper beyond a six-county territory allowed under its license agreement and is selling soda with a “Dublin Dr Pepper” labeling on packaging and other merchandise that violates its agreement.
The bottler, according to the company, is marketing a version of the beverage made with cane sugar as “Dublin Dr Pepper.” It is one of several bottlers authorized to make the drink with cane sugar, but it is not allowed to modify the name and logo as such, according to the agreement.
“In the simplest terms, the bottler in Dublin is using a logo that is no longer authorized and is taking business from fellow Dr Pepper bottlers who play by the rules and sell within their defined territories,” said Jim Johnston, president of beverage concentrates for DPS. “We owe it to our other bottlers to stop these unauthorized practices.”
DPS, a subsidiary of the parent company, filed the lawsuit in the U.S. District Court in the Eastern District of Texas.
DPS owns the Dr Pepper brand and through its subsidiaries licenses it to more than 170 bottlers across the U.S. and Canada.
Dr Pepper Snapple shares rose 14 cents to $40.69 in afternoon trading.
(Copyright 2011 by The Associated Press. All Rights Reserved.)