Dr Pepper sues rival Pepsi over new Mountain Dew Ice
The parent of Plano-based 7Up has filed suit against soft drink rival Pepsi, arguing that its new Mountain Dew Ice is so much like 7Up it violates a non-compete provision in an eight-year-old pact between the two.
The suit was filed Tuesday in U.S. District Court for the Eastern District in Sherman by Dr Pepper Snapple Group. The legal dustup stems from a 2010 licensing agreement in which PepsiCo, parent of Plano-based Frito-Lay, won distribution rights in 70 west and south Texas counties for certain brands owned by the Dr Pepper Snapple Group.
In the deal, Pepsi agreed not to sell anything in those counties that bears too much resemblance to a Dr Pepper product, according to the suit. Dr Pepper largely gets to decide what counts as too close for comfort.
PepsiCo has been marketing Mountain Dew Ice heavily in the 70-county area, even though the new drink has the "same or substantially the same characteristics and flavor designation as 7Up," the suit said, noting that both are clear, carbonated lemon-lime drinks.
Read more: https://www.dallasnews.com/business/retail/2018/03/07/bringing-heat-dr-pepper-sues-rival-pepsi-new-mtn-dew-ice