Snapple 2010 Annual Report Download - page 29

Intellectual Property and Trademarks
Our Intellectual Property. We possess a variety of intellectual property rights that are important to our business. We rely on
a combination of trademarks, copyrights, patents and trade secrets to safeguard our proprietary rights, including our brands and
ingredient and production formulas for our products.
Our Trademarks. Our trademark portfolio includes more than 2,500 registrations and applications in the U.S., Canada,
Mexico and other countries. Brands we own through various subsidiaries in various jurisdictions include Dr Pepper, 7UP, A&W,
Canada Dry, RC Cola, Schweppes, Squirt, Crush, Peñafiel, Sun Drop, Aguafiel, Snapple, Mott’s,Hawaiian Punch, Clamato, Mistic,
Nantucket Nectars, Mr & Mrs T, ReaLemon, Venom and Deja Blue. We own trademark registrations for most of these brands in
the U.S., and we own trademark registrations for some but not all of these brands in Canada, Mexico and other countries. 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 U.S., Canada and Mexico, our rights to many of
our brands, including our Dr Pepper trademark and formula, were sold by Cadbury beginning over a decade ago 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 generally allow us to manufacture
and distribute throughout the U.S. and/or Canada and Mexico. For example, we license from third parties the Sunkist soda, 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 U.S. and/or Canada and Mexico and generally 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.
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, sponsorships, merchandising, public relations and promotion to provide maximum impact for our brands and
messages.
Manufacturing
As of December 31, 2010, we operated 21 manufacturing facilities across the U.S. 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 manufacture 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 employed approximately 5,000 full-time manufacturing employees in our facilities as of December 31, 2010, 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 2010, 90% of our manufactured volumes came from our brands and 10% from third party and private-label products. We
also use third party manufacturers to package our products for us on a limited basis.
We owned property, plant and equipment, net of accumulated depreciation, totaling $1,092 million and $1,044 million in the
U.S. and $76 million and $65 million in international locations as of December 31, 2010 and 2009, respectively.
9