UPDATE 4-Dr Pepper profit beats Street view; outlook raised

* Q1 EPS ex-items 37 cents; Wall Street view 29 cents

* Strong demand for Crush and Hawaiian Punch brands

* Raises 2009 profit forecast

* Shares pare gain to up 2 pct after touching 8.4 pct (Adds company comments, industry details, updates stock move)

By Dhanya Skariachan

BANGALORE, May 13 (Reuters) - Dr Pepper Snapple Group Inc (DPS.N: Quote, Profile, Research) reported a higher-than-expected quarterly profit and raised its 2009 forecast on Wednesday as consumers looking to curb spending choose its lower-priced soft drinks.

While demand for its value-priced drinks like Crush and Hawaiian Punch has been strong during the recession, the company's more expensive brands -- particularly Snapple -- have suffered as consumers cut back.

Shares of Dr Pepper, whose other brands include A&W, 7UP and Canada Dry, were up 2 percent in afternoon trading after jumping 8.4 percent earlier.

Dr Pepper, which was separated last year from British confectionary company Cadbury Plc (CBRY.L: Quote, Profile, Research), is the third-largest soft-drink maker in the United States behind Coke and Pepsi. It has increased its U.S. market share and is trying to grow through increased marketing and expanded distribution.