Snapple 2008 Annual Report Download - page 14

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EMPOWERING
EXECUTION
10
Dr Pepper Snapple Group has a
unique, integrated business model and a broad,  exible
route to market consisting of company-owned direct
store delivery (DSD), third-party DSD, warehouse
and fountain foodservice. Since acquiring the major
pieces of our company-owned route to market, we have
brought our expanded production and distribution
capabilities into full alignment, creating a world-class
supply chain that is helping us execute our plans be er
than ever.
Strengthening Our Manufacturing,
Distribution and Logistics Capabilities
Execution is the key to our success, and nothing
enables execution more than having a lean, pro table
and energized distribution system. In 2008, we opened
three regional distribution centers. Our Tlajomulco
facility serves Northern and Western Mexico, and our
new distribution centers for packaged beverages in
Dallas and Jacksonville, Fla., serve customers across
the Southern U.S.
We also have broken ground on a new 850,000
square-foot manufacturing and distribution center in
Victorville, Calif. When opened in 2010, Victorville will
be an environmentally friendly facility that we expect
to qualify for Leadership in Energy and Environmental
Design (LEED) by the U.S. Green Building Council.
It will be the  h and  nal piece of a regional hub-
and-spoke supply chain giving us comprehensive
manufacturing capabilities in the  ve major regions of
the U.S. while improving customer service and driving
down transportation costs. We will be able to replenish
distribution centers using lower cost intermodal
transport, ful ll orders much closer to our customers
and bring our full portfolio to consumers coast-to-coast
with greater e ciency.
In particular, the ability to produce Mo ’s juices
and applesauces in Southern California, rather than
exclusively in the Northeast, will create signi cant
opportunities to expand the penetration of the brand
west of the Rocky Mountains.
Seizing High Margin Opportunities
With an aggressive plan to add 175,000 coolers and
vending machines over the next  ve years, our recent
investment in handheld technology will help us track
the performance of those assets and support our e ort
to grow share in single serve formats.
Empowering Execution
Our Victorville, Calif.,
facility will be the
fi fth and fi nal
piece of a regional
hub-and-spoke
supply chain.