Coke continues to dominate as America’s top soda, but Dr. Pepper has overtaken Pepsi for the number two position. Dr. Pepper surpassed Pepsi to become the second most popular soda brand in 2023, according to market share data from Beverage Digest.
Coke leads with 19.2% of the U.S. soda market by volume, based on Beverage Digest data. Dr. Pepper and Pepsi each hold 8.3%, with Dr. Pepper slightly ahead. Sprite and Diet Coke, both Coca-Cola brands, follow at 8.1% and 7.8%, respectively.
Dr. Pepper, known for its blend of 23 flavors, has been increasing in popularity, leveraging its unique appeal and current trends.
Founded in 1885 by Charles Alderton, Dr. Pepper predates both Coca-Cola and Pepsi. Coke and Pepsi have held the top two spots in the rankings since Beverage Digest started collecting data in 1995. While Pepsi remains a major player in the $97 billion U.S. soda market, it has been concentrating on its extensive food business, which includes brands like Frito Lay, Quaker, and Sabra
Once a regional favorite, Dr. Pepper marketed itself nationally in the 1970s. Today, it continues to grow with new flavors, like Dr. Pepper Strawberries & Cream, which CEO Timothy Cofer described as a “standout success.” The brand also introduced limited-time flavors such as Dr. Pepper Creamy Coconut, inspired by TikTok’s dirty soda trend. “Swicy,” or sweet and spicy, products are trending in the food and beverage sector. Even Coca-Cola has joined in with a spiced variant released in February.
Pepsi, on the other hand, may have been too focused on its broader portfolio. Unlike Coca-Cola and Keurig Dr. Pepper, Pepsico has a vast food division, including brands like Quaker and Frito-Lay. In beverages, Pepsi seems to be emphasizing its zero-sugar lines over classic Pepsi.
Story Behind Dr. Pepper
Dr Pepper’s history began in the early 1880s at Morrison’s Old Corner Drug Store in Waco, Texas. Unlike today’s pharmacies, this store featured a soda fountain. Charles Alderton, a pharmacist there, enjoyed concocting different soda flavors in his spare time.
Inspired by the store’s unique aroma, Alderton set out to create a soda that captured that scent. He approached this task scientifically, experimenting with various flavor combinations and meticulously recording his results. After numerous trials, he crafted a flavor he found satisfactory and shared it with Wade Morrison, the store owner. Morrison liked it, and they refined the formula together, soon serving it to customers who quickly grew fond of the new drink.
As demand soared, other soda fountains sought to offer the beverage, but Alderton had no interest in expanding production. Consequently, he sold the company to Morrison and beverage chemist Robert S. Lazenby. They established the Artesian Manufacturing and Bottling Company in 1891, and in 1904, they showcased Dr Pepper at the World’s Fair Exposition in St. Louis, introducing it to nearly 20 million people.
Initially called “Waco” after its birthplace, the name “Dr Pepper” likely originated from Morrison, though its exact inspiration remains unclear. Some believe it referenced a Dr. Charles Pepper, while others suggest it symbolized the “pep” the drink provided.
One early slogan, “King of Beverages,” proved prophetic, although the company faced challenges, including bankruptcy in the 1920s. Despite these setbacks, Dr Pepper persevered, rebranding as the Dr. Pepper Company and ramping up production and advertising. A notable campaign during the 1920s and 1930s promoted drinking Dr Pepper at 10:30, 2:30, and 4:30 to combat energy slumps.
During World War II, sugar rationing led Dr Pepper to market itself as both a drink and a food source, coining the slogan, “Drink a bite to eat at 10, 2, and 4.” Surviving the Great Depression and two world wars, Dr Pepper remained a regional favorite in the South until the 1960s.
A legal battle with Pepsi in the 1960s resulted in a landmark decision recognizing Dr Pepper as not a cola, which expanded its distribution nationwide. Woodrow Wilson “Foots” Clements, who rose from salesman to CEO, drove the company’s success from 1968 to 1977, quintupling sales and establishing Dr Pepper as a major competitor.
