Snapple 2008 Annual Report Download - page 33

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Our Trademarks. Our trademark portfolio includes more than 2,000 registrations and applications in the
United States, Canada, Mexico and other countries. Brands we own through various subsidiaries in various
jurisdictions include Dr Pepper, 7UP, A&W, Canada Dry, RC, Schweppes, Squirt, Crush, Peñafiel, Aguafiel,
Snapple, Mott’s, Hawaiian Punch, Clamato, Mistic, Nantucket Nectars, Mr & Mrs T, ReaLemon, Venom and Deja
Blue. We own trademark registrations for all of these brands in the United States, and we own trademark
registrations for some but not all of these brands in Canada and Mexico. We also own a number of smaller regional
brands. Some of our other trademark registrations are in countries where we do not currently have any significant
level of business. In addition, in many countries outside the United States, Canada and Mexico, our rights in many of
our brands, including our Dr Pepper trademark and formula, have been sold to third parties including, in certain
cases, to competitors such as Coca-Cola.
Trademarks Licensed from Others. We license various trademarks from third parties, which licenses
generally allow us to manufacture and distribute on a country-wide basis. For example, we license from third
parties the Sunkist, Welch’s, Country Time, Orangina, Stewart’s, Rose’s, Holland House and Margaritaville
trademarks. Although these licenses vary in length and other terms, they generally are long-term, cover the entire
United States and include a royalty payment to the licensor.
Licensed Distribution Rights. We have rights in certain territories to bottle and/or distribute various brands
we do not own, such as Arizona tea and FIJI mineral water. Some of these arrangements are relatively shorter in
term, are limited in geographic scope and the licensor may be able to terminate the agreement upon an agreed period
of notice, in some cases without payment to us.
Intellectual Property We License to Others. We license some of our intellectual property, including
trademarks, to others. For example, we license the Dr Pepper trademark to certain companies for use in connection
with food, confectionery and other products. We also license certain brands, such as Dr Pepper and Snapple, to third
parties for use in beverages in certain countries where we own the brand but do not otherwise operate our business.
Cadbury Schweppes Name. We have removed “Cadbury” from the names of our companies after our
separation from Cadbury. Cadbury can continue to use the “Schweppes” name as part of its companies’ names
outside of the United States, Canada and Mexico (and for a transitional period, inside of the United States, Canada
and Mexico).
Marketing
Our marketing strategy is to grow our brands through continuously providing new solutions to meet
consumers’ changing preferences and needs. We identify these preferences and needs and develop innovative
solutions to address the opportunities. Solutions include new and reformulated products, improved packaging
design, pricing and enhanced availability. We use advertising, media, merchandising, public relations and pro-
motion to provide maximum impact for our brands and messages.
Manufacturing
As of December 31, 2008, we operated 24 manufacturing facilities across the United States and Mexico.
Almost all of our CSD beverage concentrates are manufactured at a single plant in St. Louis, Missouri. All of our
manufacturing facilities are either regional manufacturing facilities, with the capacity and capabilities to man-
ufacture many brands and packages, facilities with particular capabilities that are dedicated to certain brands or
products, or smaller bottling plants with a more limited range of packaging capabilities. We intend to build and open
a new, multi-product manufacturing facility in Southern California within the next two years.
We employ approximately 5,000 full-time manufacturing employees in our facilities, including seasonal
workers. We have a variety of production capabilities, including hot fill, cold-fill and aseptic bottling processes, and
we manufacture beverages in a variety of packaging materials, including aluminum, glass and PET cans and bottles
and a variety of package formats, including single-serve and multi-serve packages and “bag-in-box” fountain syrup
packaging.
In 2008, 88% of our manufactured volumes were related to our brands and 12% to third party and private-label
products. We also use third party manufacturers to package our products for us on a limited basis.
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