UPDATE 1-Dr Pepper Snapple CEO says not looking to buy brands
NEW YORK, Dec 15 (Reuters) - Dr Pepper Snapple Group Inc (DPS.N) is not actively looking to sell any of its soft drink brands or buy any new brands, its chief executive said on Monday.
Speaking at a conference in New York hosted by trade publication Beverage Digest, CEO Larry Young said the company may make some tiny acquisitions but they would be too small to make a difference.
"Acquisitions are not on our priority list," Young said, adding that Dr Pepper Snapple would rather spend its cash to pay down debt or buy back shares.
When asked whether the company was looking to sell any of its brands, which include Canada Dry, Hawaiian Punch and Clamato, Young said Dr Pepper Snapple is happy with its current portfolio.
Dr Pepper, the third-largest U.S. soft-drink maker behind Coca-Cola Co (KO.N) and PepsiCo Inc (PEP.N), does some contract packaging for private-label brands.
But Young said the company is focused more clearly on national brands, despite a recession that has led some consumers to forego soft-drink splurges in favor of less expensive soft drinks.
Young reiterated comments he made last month when the company posted a lower-than-expected third-quarter profit and cut its 2008 forecasts.
He said sales of premium drinks, such as some Snapple teas and Rose's Mixers, were softening, while less expensive beverages like Dr Pepper and Canada Dry were still selling.
But the recession could have a slight long-term impact on consumers' buying habits, even after the economy recovers, Young said.
Dr Pepper Snapple shares were up 3.2 percent to $16.04 in early afternoon trading on the New York Stock Exchange. (Reporting by Martinne Geller; Editing by Tim Dobbyn)
