Keurig Dr Pepper Inc (NYSE:KDP) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 08:00 am ET
the latest quarter. The strength of our differentiated portfolio is unprecedented. We were the first company to combine hot and cold beverages at scale, including leading positions in single serve coffee, flavored CSDs, premium water, juices and mixers.
Our core portfolio was very strong in the quarter as we gain market share of total liquid refreshment beverages with gains in the majority of the categories segments in which we compete. Specifically in CSDs we gained 1.2 share points and moved to the Number 2 CSD player in a number of key grocery customers, driven by broad-based core brand strength, strong in market execution and innovations such as Dr Pepper & Cream Soda and Canada Dry Bold.
In fact, Dr Pepper & Cream Soda is the best performing innovation in the CSD category so far this year. The Dr Pepper brand has now delivered 17 consecutive quarters of growth at retail, while Canada Dry has done the same for 13 consecutive years. What's important for our longer-term outlook however, is the fact that our -- mention of CSDs has been heavily driven by a double-digit increase in new households purchasing many of our brands. And we confident that we will be able to retain a portion of the these new households once we emerge from this crisis.
In the hot portfolio, we have a commanding leadership position of single serve coffee with a combination of owned, licensed and partner brands and the Keurig brand is ranked by consumers as one of the most relevant brands in the country, not just in CPG, but among all brands. In the second quarter, our coffee systems segment grew pod volume 9.5% and brewer volume 11.6% and that's on top of 19% growth in the year ago period, primarily reflecting new households entering the system.
These results reflect significant growth in coffee consumption at home, partially offset by the away from home channel, particularly our large office coffee business and to a lesser extent our hospitality business, which were down significantly in the quarter. Our share of K-Cup Pods manufactured by KDP held steady at 82% and retail pricing for the category increased by 2%, as promotional activity lessened and mix shifted towards premium brands.
Further, share trends for our portfolio of owned and license brands also improved. We've previously discussed our seven distinct routes to market at some length and today I think it is relevant to highlight DSD and e-commerce, using examples of their contributions in the second quarter to also illustrate our long-term strategy. Our DSD network has served us very well during this crisis by enabling the highest levels of flexibility, speed and delivery.
We have been able to pivot on a granular basis at both the products skew and local marketplace level to react to changes in demand, using near real-time data that's simply not available in other distribution systems. We see opportunity to continue to invest to improve our DSD system and look forward to sharing more with you