Snapple 2008 Annual Report Download - page 7

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r
Letter to Stockholders
We generated $709 million of cash from operations.
Our strong, stable cash  ow enabled us to pay down
$395 million of our  oating rate term loan in 2008,
pu ing us signi cantly ahead of our repayment
schedule and giving us the  exibility to invest in
growth opportunities.
Defi ning and Delivering Against Our
Strategic Priorities
As an independent company, we have established a
strategy that re ects and builds upon our position
as the leading  avored beverage business in the U.S.
Accordingly, we set  ve key priorities:
Building and enhancing our leading brands•
Pursuing pro table channels, packages and formats•
Leveraging our integrated business model •
Strengthening our route to market•
Improving operating e ciency•
is report highlights the progress we are making in
advancing those strategies.
Building and Enhancing Our Leading Brands
Dr Pepper Snapple has an outstanding portfolio of
well-loved, consumer-preferred brands. In 2008, we
refocused our e orts on the strengths of our top-tier
brands based on consumer insights that informed
successful marketing and product innovation. Once
again, we outperformed the industry in dollar share
growth in CSDs. Dr Pepper volume held steady and
Diet Dr Pepper grew more than 2 percent while
Canada Dry volume increased approximately 3 percent
on the strength of the successful launch of Canada Dry
Green Tea Ginger Ale. Conversely, 7UP declined
7 percent compared with strong results in 2007, which
bene ted from the completed rollout of 7UP with
100% Natural Flavors and the launch of a reformulated
Diet 7UP.
Our juice and juice drink portfolio grew on the
strength of Hawaiian Punch, Mo ’s and Clamato.
However, we were disappointed in the performance
of Snapple as we lapped heavy promotional activity
from the prior year and economic pressures steered
consumers away from premium beverages toward
value-priced o erings. With a complete relaunch of
Snapple premium teas and juices planned in 2009,
as well as the continued rollout of value teas, we are
optimistic about the long-term potential of this
great brand.
We are seeing greater e ciency and e ectiveness
from our product innovation and commercialization
activities a er relocating our R&D Center to our
Plano headquarters.  is best-in-class center has
brought R&D functions under the same roof as
our sales and marketing teams.  is means greater
alignment, faster decision-making and more nimble
response to emerging consumer trends.
Driving consumer preference for our core brands and
their supporting innovation will be key to our success
in 2009. In addition to major advertising e orts for
Dr Pepper and Diet Dr Pepper, we’re fueling up for
a signi cant push behind all of our biggest brands,
3
Once again, we
outperformed the
industry in dollar
share growth
in CSDs.
DPS has the leading fl avored CSD portfolio in the U.S. with
six of the top 10 non-cola beverages.