Who Owns 7UP Today? From Small Soda to Global Brand Empire

7UP ranked as the world's third most popular soft drink during the 1970s. The beverage started its journey with an unusual name - Bib-Label Lithiated Lemon-Lime Soda that contained lithium citrate. The iconic brand's ownership structure now spans two major beverage companies. Keurig Dr Pepper manages 7UP operations in the United States, while PepsiCo oversees the brand internationally.

The Origins of 7UP: From Bib-Label to Beverage Icon

The 7UP story starts with an entrepreneur who failed twice before creating one of the world's best-known beverages. A single inventor's determination would change a simple lemon-lime formula into a global sensation, long before big corporations fought over ownership rights.

Charles Leiper Grigg and the Howdy Company

Charles Leiper Grigg was born on May 11, 1868, in Prices Branch, Missouri. He moved to St. Louis to build his career in advertising and sales for soft drink companies. His trip into the beverage industry started when he joined Vess Jones's manufacturing company around 1919. He created his first soft drink there—an orange-flavored soda named "Whistle".

Grigg left the company after management disputes and gave up his rights to Whistle. He stayed determined and joined Warner Jenkinson Company. There he developed flavoring agents for soft drinks and created another orange soda called "Howdy". This time, he kept Howdy's rights when he left.

He then teamed up with financier Edmund G. Ridgway and lawyer Frank Gladney to start the Howdy Company. The company's original success didn't last as Orange Crush dominated the orange soda market. Instead of fighting a losing battle, Grigg made a smart move to the untapped lemon-lime category.

The original formula and lithium content

Grigg launched what would become 7UP in October 1929—just two weeks before the Wall Street Crash that sparked the Great Depression. His timing turned out lucky. The drink succeeded in part because of its unique formula during one of America's toughest economic times.

The original formula's standout ingredient was lithium citrate, a mood-stabilizing drug common in patent medicines back then. This wasn't just any ingredient—it was a key selling point. Grigg marketed the drink's mood-boosting properties during the Depression, positioning it as the perfect pick-me-up.

The FDA banned lithium in beer and soft drinks in 1948. The company had to change 7UP's formula two years later. The drink's popularity kept growing despite this change. By the late 1940s, 7UP had become America's third most popular soft drink.

Why the name '7UP'?

The brand's name remains its biggest mystery. The product's original name sparks much debate. Many sources say it launched as "Bib-Label Lithiated Lemon-Lime Soda". "Bib-Label" came from paper labels that hung around bottle necks like bibs.

Evidence suggests this long name might be a myth. The "SEVEN-UP" trademark was granted in 1928. Newspaper ads from 1930 show "7-Up Lemon Soda" with no mention of "Bib-Label". The name became just "7UP" in 1936.

Grigg never revealed the meaning behind "7UP". Here are some theories:

• Seven ingredients theory: The "7" matched the drink's seven ingredients: sugar, carbonated water, essence of lemon and lime oils, citric acid, sodium citrate, and lithium citrate

• Bottle size theory: 7UP came in seven-ounce bottles while competitors like Coca-Cola used six-ounce bottles

• Lithium connection: The "7" might refer to lithium's atomic mass (about 7), with "UP" suggesting the mood-lifting effect

• Dice game winnings: A less proven theory claims Grigg named it after winning money rolling several 7s in craps

The simple name worked well in the market. The mix of a catchy name, unique flavor, and supposed health benefits turned 7UP into a soaring win when most businesses struggled to stay alive.

Ownership Timeline: Who Has Owned 7UP Over the Years?

7UP's ownership story shows how a family business turned into a corporate asset through mergers, acquisitions, and mutually beneficial alliances. Let's look at who owns 7UP and its experience with different parent companies.

Philip Morris and the 1978 acquisition

7UP's founding families managed to keep private ownership for 58 years until a big change came in 1978. That year, tobacco giant Philip Morris started an aggressive takeover bid at $41 per share—adding up to $440 million. Family members who controlled more than 45% of 7UP's stock rejected the offer right away. Philip Morris ended up buying the company anyway.

The final price went up by a lot from the original offer, with Philip Morris paying about $520 million for the beverage maker. This purchase helped Philip Morris branch out, following their earlier purchase of Miller Brewing Company in 1970.

7UP had only 7% of the soda market when Philip Morris bought it, far behind Coca-Cola's 36% and Pepsi's 17%. In spite of that, Philip Morris executives felt sure they could grow the brand. "We intend to be a major factor in the soft drink business," said Ross Millhiser, vice chairman of 

Philip Morris. The company saw similarities with their Miller Brewing success story, which grew from 4.5% market share in 1970 to 19% by 1978.

Cadbury Schweppes and the 1995 transition

Philip Morris didn't keep 7UP long. They split it into two parts in 1986—selling international operations to PepsiCo and the US business to an investment group led by Hicks & Haas. This investment group combined 7UP with Dr Pepper in 1988, creating Dr Pepper/Seven Up Companies, Inc..

Cadbury Schweppes, the London-based soda and candy corporation, bought Dr Pepper/Seven Up in 1995 for $1.7 billion, or $33 per share. Cadbury already owned 25.9% of Dr Pepper/Seven Up stock before the complete purchase.

This purchase made Cadbury stronger in the American beverage world. The deal put Dr Pepper together with Cadbury's other brands—including Schweppes, Canada Dry, Crush, and others—giving Cadbury about 17% of the US carbonated beverage market. It also let Cadbury control almost half of the $16.8 billion American market for non-cola soft drinks.

Keurig Dr Pepper and PepsiCo split ownership

The ownership structure from 1986—PepsiCo holding international rights and another company controlling US distribution—still exists today. More corporate changes happened after Cadbury bought the company.

Cadbury Schweppes created the independent Dr Pepper Snapple Group in 2008 by spinning off its beverage division. Keurig Green Mountain bought Dr Pepper Snapple Group for $18.7 billion in 2018, creating Keurig Dr Pepper. The new company started trading on the New York Stock Exchange under "KDP".

These corporate moves mean the answer to "who owns 7UP?" depends on location:

• United States: Keurig Dr Pepper owns and distributes 7UP

• International markets: PepsiCo maintains ownership rights

This split ownership setup stands out in the beverage industry, where most global brands have single owners across all markets.

Who Owns 7UP Today? A Split Between Two Giants

The ownership of 7UP stands out as one of the most unique arrangements in the beverage industry. Understanding who owns 7UP today requires a look at a corporate split that has lasted almost 40 years. This split divides the famous lemon-lime soda between two beverage giants.

Keurig Dr Pepper: U.S. ownership

Keurig Dr Pepper (KDP) owns 7UP in the United States. The story began in 1986 when Philip Morris sold 7UP's U.S. business to an investment group led by Hicks & Haas. The company then merged with Dr Pepper in 1988 to create Dr Pepper/Seven Up.

Cadbury Schweppes bought the combined company in 1995. A big change came in 2008 when Dr Pepper Snapple Group split from Cadbury Schweppes.

The final change happened on July 9, 2018. Keurig Green Mountain bought Dr Pepper Snapple Group for $18.7 billion. This deal created today's Keurig Dr Pepper, which runs Dr Pepper Snapple Group as a business unit.

Keurig Dr Pepper now has headquarters in Burlington, Massachusetts and Frisco, Texas. The company makes more than 125 hot and cold beverages. They have hired around 28,000 people as of September 2023.

PepsiCo: International rights

PepsiCo owns 7UP outside the United States. They bought the international division from Philip Morris in 1986 for $246 million cash. This deal included distribution rights and two Canadian bottling plants in Toronto and Ottawa.

Seven-Up International's headquarters were in Lausanne, Switzerland at the time. The company ranked third among soft drink makers outside the United States and operated in more than 85 countries.

This purchase helped PepsiCo increase its overseas volume by 17.8% to 1.65 billion cases yearly. Robert H. Beeby, president of Pepsi Cola International, noted: "It will close the gap, but Coke is still in a superior position overseas".

PepsiCo now distributes 7UP in most global markets. Some places have different arrangements, like the UK where Carlsberg Britvic handles distribution.

How the dual ownership works

The company that owns 7UP changes based on location. The same brand operates under two different companies with separate shareholders.

The arrangement works like this:

• Keurig Dr Pepper makes and distributes 7UP in the United States

• PepsiCo handles 7UP operations in most other countries

• Some markets like the UK have special distributors (Carlsberg Britvic) working under PepsiCo's license

This setup creates interesting competition. 7UP competes against PepsiCo's Mountain Dew and Sierra Mist/Starry brands in the U.S. In other countries, PepsiCo sells 7UP along with its other drinks.

Market data shows Coca-Cola has about 39% market share and Pepsi 29% in the United States. Adding 7UP to either company's lineup brought great strategic value, which explains why this complex ownership structure continues today.

How 7UP Evolved: Branding, Lawsuits, and Market Shifts

7UP's standing in the beverage market changed dramatically due to product changes and fierce market battles.

Recipe changes and legal challenges

7UP went through a major recipe change in 2006. The company marketed it as "100% natural" after removing calcium disodium EDTA and switching sodium citrate with potassium citrate. This change brought down sodium levels in 12-oz cans by almost half, from 75mg to 40mg.

Legal challenges quickly followed the "100% natural" claim. The Center for Science in the Public Interest threatened to sue in 2007, which made 7UP's parent company switch their marketing to "100% Natural Flavors". The debate focused on high-fructose corn syrup, which advocacy groups said wasn't "natural" due to its manufacturing process.

The company faced another lawsuit in 2012 about antioxidant claims in its Cherry, Mixed Berry, and Pomegranate flavors. The lawsuit claimed these products misled consumers by suggesting antioxidants came from fruits shown on labels, when they actually contained vitamin E acetate without real fruit juice. Dr Pepper Snapple Group settled the case in 2013 and agreed to remove antioxidant mentions.

The rise of Sprite and market competition

The question of who owns 7UP became less important than its declining market position against rivals. Coca-Cola launched Sprite in 1961 to challenge 7UP's control of the lemon-lime category. Sprite took 7UP's crown as the leading lemon-lime soda by 1986.

Sprite held 6.1% of the $38 billion carbonated drink market in 1997, while 7UP had just 2.6%. This gap grew even wider by 2017, with Sprite commanding 8% market share compared to 7UP's 2%.

The competition turned legal when Seven-Up sued Coca-Cola for using misleading promotional presentations that convinced independent bottlers to switch from 7UP to Sprite. The jury found these presentations had swayed two bottlers to make the change.

Decline in cultural relevance

The company that owns 7UP tried several recipe changes and rebranding efforts throughout the 1990s. The company changed 7UP's recipe three times between 1996 and 2006 to improve flavor and compete with Sprite.

Sprite secured its position by getting endorsements from LeBron James, Kobe Bryant, J. Cole, and Drake, which appealed to younger audiences. 7UP lost its way in contrast. The brand that once captured attention with its distinctive "Uncola" campaign in the late 1960s slowly disappeared from public awareness.

7UP’s Modern Strategy: Rebranding and Global Reach

Keurig Dr Pepper and PepsiCo have moved 7UP into a new era as they tackle declining market share. Their shared ownership demands coordinated work to revive a brand that once led the market but now struggles against competitors like Sprite.

The 2023 rebrand and 'UPliftment' campaign

7UP revealed its first global rebrand in seven years with the "UPliftment" campaign in January 2023. The brand wanted to refresh its image in all markets whatever who owns 7UP in each region. A modernized logo, clean green and yellow color scheme, and updated typography created a more contemporary visual identity.

The "UPliftment" concept stands at the heart of this campaign. This positioning strategy connects the brand with positive, uplifting moments. The new approach marks a transformation from earlier marketing efforts and brings consistency between territories that both parent companies control.

7UP Zero Sugar and health-conscious products

The company that owns 7UP has made sugar-free offerings a top priority as consumer priorities evolve. Under Keurig Dr Pepper's direction, 7UP Zero Sugar has become the centerpiece of marketing campaigns in North America.

This product line expansion mirrors the industry's move toward healthier options as consumers avoid sugary drinks. The 7UP brand has also explored natural flavoring alternatives and lower calorie options that appeal to health-conscious consumers while keeping its signature lemon-lime taste.

Targeting Gen Z and Millennials

Who makes 7UP recognizes younger demographics as crucial to future success and has adapted its marketing approach. Both owners have boosted their digital media investment and social platform presence to reach Gen Z and millennial consumers.

The brand's revival strategy taps into nostalgia marketing. It leverages 7UP's rich history while making it relevant today. Creative collaborations with musicians, artists, and influencers help introduce the brand to younger generations who might not know its cultural impact from previous decades.

Conclusion

7UP's trip from a lithium-infused soda to a split-ownership global brand definitely shows the beverage industry's development. The iconic drink faces fierce competition from Sprite, yet Keurig Dr Pepper and PepsiCo continue to revitalize it through rebranding efforts and health-conscious options. The brand's future relevance will depend on its appeal to younger demographics without doubt.

FAQs

Q1. Who currently owns the 7UP brand? 

The ownership of 7UP is split between two companies. In the United States, Keurig Dr Pepper owns and distributes 7UP, while PepsiCo holds the ownership rights for international markets.

Q2. What was 7UP originally called when it was first introduced? 

When 7UP was first introduced in 1929, it was reportedly called "Bib-Label Lithiated Lemon-Lime Soda," although there is some debate about this initial name. The trademark "SEVEN-UP" was granted in 1928, and the name was officially shortened to just "7UP" in 1936.

Q3. Did 7UP really contain lithium in its original formula? 

Yes, the original formula of 7UP contained lithium citrate, a mood-stabilizing drug. This ingredient was actually used as a selling point during the Great Depression, marketed for its mood-enhancing properties. However, the FDA banned lithium in soft drinks in 1948, leading to a reformulation of 7UP.

Q4. How has 7UP's market position changed over the years? 

7UP was once the third most popular soft drink in the United States in the late 1940s. However, its market position has declined significantly since then, particularly with the rise of competitors like Sprite. As of 2017, 7UP held only about 2% of the carbonated drink market share, compared to Sprite's 8%.

Q5. What recent changes has 7UP made to stay relevant in the beverage market? 

In 2023, 7UP launched a global rebrand called the "UPliftment" campaign, which included a modernized logo and updated visual identity. The brand has also focused on expanding its sugar-free offerings, such as 7UP Zero Sugar, to appeal to health-conscious consumers. Additionally, 7UP has increased its digital marketing efforts to target younger generations like Gen Z and millennials.