PLANO, Texas—Shares of the company that makes Dr Pepper and Snapple officially began trading Wednesday on the New York Stock Exchange, out from under the umbrella of former owner Cadbury Schweppes.
"Today marks the beginning of a new era for our business," said Larry Young, president and chief executive of the new company. He expressed confidence in "seizing the opportunities as a stand alone company."
The company said shares began trading on a "when-issued" basis April 28, meaning early trades were settled when the stock was officially issued. The when-issued shares opened at $29 but lost $1.95 April 28, then rallied before sliding to Wednesday's opening price of $25.05.
Shares of Dr Pepper Snapple Group Inc. rose 45 cents to $25.50 on Wednesday.
The Plano-based company had $5.7 billion in sales last year, when it was part of Cadbury Schweppes PLC. It bottles soft drinks, tea, water and other beverages under brands including 7UP, Canada Dry, Schweppes, Mott's, Sunkist and RC Cola.
Cadbury spun off the beverages division to focus on its core candy business.
Last month, a Lehman Brothers analyst said the beverages company will face many challenges, including high commodity costs and competition from The Coca-Cola Co. and PepsiCo Inc., which have much larger market shares.
