Snapple 2010 Annual Report Download - page 51

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Net sales decreased $13 million for the year ended December 31, 2010, compared with the year ended December 31, 2009,
primarily as a result of the $53 million decline in contract manufacturing. Additionally, net sales were favorably impacted by
volume increases in NCBs and changes in foreign currency, partially offset by the unfavorable impact of product mix and decreases
in price/mix primarily attributable to CSDs.
SOP decreased $37 million for the year ended December 31, 2010, compared with the year ended December 31, 2009. The
decrease was driven primarily by $19 million of higher expenses associated with labor, co-packing, unfavorable yield, and an
underabsorption of manufacturing overhead as a result of our strike at our Williamson, New York manufacturing facility as we
continued to produce product and service customers during this work stoppage, which ended on September 13, 2010. Other factors
negatively affecting this comparison include decreases in price/mix primarily attributable to CSDs, costs and depreciation
associated with the startup of our manufacturing facility in Victorville, California, higher transportation costs, higher benefit costs,
higher commodity costs, an unfavorable comparison of the actuarial adjustments for certain insurance plans, and a $5 million
unfavorable non-cash adjustment to rent expense for certain leases. These items were partially offset by volume growth in our
NCB category, ongoing supply chain efficiencies and changes in foreign currency.
Latin America Beverages
The following table details our Latin America Beverages segment's net sales and SOP for year ended December 31, 2010 and
2009 (dollars in millions):
Net sales
SOP
For the Year Ended
December 31,
2010
$ 382
40
2009
$ 357
54
Amount
Change
$25
(14)
Sales volumes increased 6% for the year ended December 31, 2010, compared with the year ended December 31, 2009. The
increase in volume was driven by a transfer of concentrates sales of certain brands in the Caribbean from our Beverage Concentrates
segment, a 10% increase in Squirt due to higher sales to third party bottlers, a 31% increase in Crush with the continued growth
from the introduction of new flavors in a 2.3 liter value offering, as well as additional distribution routes added throughout 2009
and 2010. These volume increases were partially offset by an 8% decrease in Peñafiel due to decreased sales to third party
distributors driven by increased competition.
Net sales increased $25 million for the year ended December 31, 2010, compared with the year ago period, primarily due to
a $21 million favorable impact of changes in foreign currency and an increase in sales volumes, partially offset by an unfavorable
impact related to product mix and higher discounts.
SOP decreased $14 million for the year ended December 31, 2010, compared with the year ended December 31, 2009, as a
result of higher discounts, higher marketing investments, route expansion costs, investments in information technology
infrastructure and increase in commodity costs, partially offset by increases in sales volumes and the favorable impact of changes
in foreign currency.
Items Impacting the Consolidated Statements of Operations
The following transactions related to the Company’s separation from Cadbury were included in the Consolidated Statements
of Operations for the years ended December 31, 2010 and 2009 (in millions):
Incremental tax (benefit) expense related to separation, excluding indemnified taxes
Impact of Cadbury tax election
2010
$4
(1)
2009
$(5)
—
31