Snapple 2008 Annual Report Download - page 31

transactions. Key brands include Snapple, Mott’s, Hawaiian Punch, Clamato, Nantucket Nectars, Venom Energy,
Yoo-Hoo, Orangina, Mistic, Mr and Mrs T, Rose’s, Margaritaville, Stewart’s and IBC.
We are a leading manufacturer of NCBs by retail sales in the United States, according to The Nielsen
Company.
Our Finished Goods products are manufactured in several facilities across the United States and are distributed
to retailers and their warehouses by our own distribution network or third party distributors. The raw materials used
to manufacture our finished beverages include aluminum cans and ends, glass bottles, PET bottles and caps, paper
products, sweeteners, juices, water and other ingredients.
We sell our Finished Goods brands through all major retail channels, including supermarkets, fountains, mass
merchandisers, club stores, vending machines, convenience stores, gas stations, small groceries, drug chains and
dollar stores. In 2008, Wal-Mart Stores, Inc., the largest customer of our Finished Goods segment, accounted for
approximately 18% of our net sales in this segment.
Bottling Group
Our Bottling Group segment is principally a bottling and distribution business. In this segment, we manu-
facture and distribute finished beverages, including our brands, third party owned brands and certain private label
beverages in the United States. In 2008, our Bottling Group segment had net sales of approximately $3.1 billion
before the elimination of intersegment transactions.
Approximately 89% of our 2008 Bottling Group net sales of branded products come from our own brands, such
as Dr Pepper, 7UP, Snapple, Sunkist, A&W and Canada Dry, with the remaining from the distribution of third party
brands such as FIJI mineral water and Arizona tea. In addition, a small portion of our Bottling Group sales come
from bottling beverages and other products for private label owners or others for a fee. Although the majority of our
Bottling Group’s net sales relate to our brands, we also provide a route-to-market for third party brand owners
seeking effective distribution for their new and emerging brands. These brands give us exposure in certain markets
to fast growing segments of the beverage industry with minimal capital investment.
Our Bottling Group products are manufactured in several facilities across the United States and sold to
retailers. The raw materials used to manufacture our products are concentrates, sweeteners and other ingredients,
aluminum cans and ends, PET, glass bottles, paper products and water.
The majority of the Bottling Group’s sales are through direct store delivery supported by a fleet of more than
5,000 trucks and approximately 12,000 employees, including sales representatives, merchandisers, drivers and
warehouse workers. Our Bottling Group’s product portfolio is sold within the United States through approximately
200,000 retailer accounts across all major retail channels. In 2008, Wal-Mart Stores, Inc. accounted for approx-
imately 11% of our Bottling Group’s net sales.
Mexico and the Caribbean
Our Mexico and the Caribbean segment is a brand ownership and a bottling and distribution business. This
segment participates mainly in the carbonated mineral water, flavored CSD, bottled water and vegetable juice
categories, with particular strength in carbonated mineral water and grapefruit flavored CSDs. In 2008, our Mexico
and the Caribbean segment had net sales of $427 million with our operations in Mexico representing approximately
90% of the net sales of this segment. Key brands include Peñafiel, Squirt, Clamato and Aguafiel.
In Mexico, we manufacture and distribute our products through our bottling operations and third party bottlers
and distributors. In the Caribbean, we distribute our products through third party bottlers and distributors. In
Mexico, we also participate in a joint venture to manufacture Aguafiel brand water with Acqua Minerale
San Benedetto. We provide expertise in the Mexican beverage market and Acqua Minerale San Benedetto provides
expertise in water production and new packaging technologies.
We sell our finished beverages through all major Mexican retail channels, including the “mom and pop” stores,
supermarkets, hypermarkets, and on premise channels.
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