Snapple 2010 Annual Report Download - page 3

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PRESIDENT & CEO
LARRY D. YOUNG
CHAIRMAN OF THE BOARD
WAYNE R. SANDERS
‘‘DPS’s strategy
is unchanged,
and it’s working.
’’
LETTER TO STOCKHOLDERS
To Our Stockholders:
The foundation is set. The portfolio is unrivaled. At
Dr Pepper Snapple Group, we are flavored to win.
In the three years since our listing on the New
York Stock Exchange, we have built a foundation
for sustainable growth, and our efforts are
consistently paying off. In 2010, we grew U.S.
dollar share in carbonated soft drinks (CSDs)
for the sixth straight year while delivering solid
top- and bottom-line results. We now hold
a 40.4 percent dollar share of the non-cola
category, up 0.2 points in 2010. Moreover,
our healthy cash flow allowed us to pay down
our debt to targeted levels and return more
than $1.3 billion to shareholders in the form
of dividends and share repurchases.
We have maintained an unwavering focus on the
fundamentals of our business and the needs of
our customers. Our wins in 2010 have been a
significant step toward achieving our long-term
goals. Here’s just a taste:
•฀ 2010 was our first full year of dividends,
with our quarterly dividend increasing
67 percent to 25 cents, and we raised our
share repurchase plan to $2 billion, of which
$1.1 billion has already been completed.
•฀ We closed historic licensing deals with
PepsiCo, Inc. and The Coca-Cola Co.,
bringing in one-time payments of more than
$1.6 billion, creating millions of sampling
occasions and returning 25 million cases
to our own distribution system.
•฀ Dr Pepper is now available in virtually all of
the nearly 14,000 McDonald’s® restaurants in
the United States, and Diet Dr Pepper nearly
quintupled its availability there.
•฀ We turned Snapple around with new products,
packages and distribution, demonstrating our
ability to grow brands profitably through the
strength of our execution.
•฀Our Victorville, Calif., plant opened
on time and under budget, improving
distribution in the West.
•฀Mott’s Medleys, a juice that delivers
a total of two fruit and vegetable servings
in every 8-oz. glass, was recognized
as Best New Ready-to-Drink Beverage
at the inaugural InterBev Beverage
Innovation Awards. Mott’s also gained
market share in Canada with the
success of Garden Cocktail.
•฀ Building upon route expansions in 2009, Latin
America Beverages grew volume share
in every major category except flavored water.
•฀ We published our first-ever corporate social
responsibility (CSR) report, “Sustainability
in ACTION,” which established ambitious
CSR goals through 2015.
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