Snapple 2010 Annual Report Download - page 21

PART I
ITEM 1. BUSINESS
Our Company
Dr Pepper Snapple Group, Inc. is a leading integrated brand owner, manufacturer and distributor of non-alcoholic beverages
in the United States ("U.S."), Canada and Mexico with a diverse portfolio of flavored (non-cola) carbonated soft drinks (“CSDs”)
and non-carbonated beverages (“NCBs”), including ready-to-drink teas, juices, juice drinks and mixers. We have some of the most
recognized beverage brands in North America, with significant consumer awareness levels and long histories that evoke strong
emotional connections with consumers. References in this Annual Report on Form 10-K to “we”, “our”, “us”, “DPS” or “the
Company” refer to Dr Pepper Snapple Group, Inc. and its subsidiaries, unless the context requires otherwise.
The following table provides highlights about our company:
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#1 flavored CSD company in the U.S.
Approximately 77% of our volume from brands that are either #1 or #2 in their category
#3 North American liquid refreshment beverage ("LRB") business
$5.6 billion of net sales in 2010 from the U.S. (89%), Canada (4%) and Mexico and the
Caribbean (7%)
History of Our Business
We have built our business over the last three decades through a series of strategic acquisitions. In the 1980’s through the
mid-1990’s, we began building on our then existing Schweppes business by adding brands such as Mott’s, Canada Dry and A&W
and a license for Sunkist soda. We also acquired the Peñafiel business in Mexico. In 1995, we acquired Dr Pepper/Seven Up, Inc.,
having previously made minority investments in the company. In 1999, we acquired a 40% interest in Dr Pepper/Seven Up Bottling
Group, Inc., (“DPSUBG”), which was then our largest independent bottler, and increased our interest to 45% in 2005. In 2000,
we acquired Snapple and other brands, significantly increasing our share of the U.S. NCB market segment. In 2003, we created
Cadbury Schweppes AmericasBeverages by integrating the way we managed our four North Americanbusinesses (Mott’s,Snapple,
Dr Pepper/Seven Up and Mexico). During 2006 and 2007, we acquired the remaining 55% of DPSUBG and several smaller bottlers
and integrated them into our Packaged Beverages segment, thereby expanding our geographic coverage.
Separation from Cadbury and Formation of Our Company
In 2008, Cadbury Schweppes plc (“Cadbury Schweppes”) separated its beverage business in the U.S., Canada, Mexico and
the Caribbean (the “Americas Beverages business”) from its global confectionery business by contributing the subsidiaries that
operated its Americas Beverages business to us. The separation involved a number of steps, and as a result of these steps:
• On May 1, 2008, Cadbury plc (“Cadbury plc”) became the parent company of Cadbury Schweppes. Cadbury plc and
Cadbury Schweppes are hereafter collectively referred to as “Cadbury” unless otherwise indicated.
• On May 7, 2008, Cadbury plc transferred its Americas Beverages business to us and we became an independent publicly-
traded company listed on the New YorkStock Exchange under the symbol “DPS”. In return for the transfer of the Americas
Beverages business, we distributed our common stock to Cadbury plc shareholders. As of the date of distribution, a total
of 800 million shares of our common stock, par value $0.01 per share, and 15 million shares of our undesignated preferred
stock were authorized. On the date of distribution, 253.7 million shares of our common stock were issued and outstanding
and no shares of preferred stock were issued.
We were incorporated in Delaware on October 24, 2007. Prior to separation, Dr Pepper Snapple Group, Inc. did not have any
operations. Refer to Note 3 of the Notes to our Audited Consolidated Financial Statements for further information.
Products and Distribution
We are a leading integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the U.S, Mexico and
Canada and we also distribute our products in the Caribbean. In 2010, 89% of our net sales were generated in the U.S., 4% in
Canada and 7% in Mexico and the Caribbean. We sold 1.6 billion equivalent 288 fluid ounce cases in 2010. The following table
provides highlights about our key brands:
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