Snapple 2010 Annual Report Download - page 56

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Beverage Concentrates
The following table details our Beverage Concentrates segment's net sales and SOP for 2009 and 2008 (in millions):
Net sales
SOP
For the Year Ended
December 31,
2009
$ 1,063
683
2008
$ 983
622
Amount
Change
$80
61
Net sales for the year ended December 31, 2009, increased $80 million compared with year ended December 31, 2008, due
to a 6% increase in volumes as well as concentrate price increases. The expanded distribution of Crush added an incremental
$74 million to net sales for the year ended December 31, 2009. The increase in net sales was partially offset by higher fountain
food service discounts and coupon spending.
SOP increased $61 million for the year ended December 31, 2009, as compared with the year the ended December 31,
2008, primarily driven by the increase in net sales and favorable manufacturing and distribution costs partially offset by
increased marketing investments and higher personnel costs.
Volume (BCS) increased 5% for the year ended December 31, 2009, compared with the year ended December 31, 2008,
primarily driven by the expanded distribution of Crush, which added an incremental 44 million cases in 2009. Dr Pepper
increased 2% led by the launch of the Cherry line extensions and strength in Diet Dr Pepper. The volume of our Core 4 brands
declined 1%.
Packaged Beverages
The following table details our Packaged Beverages segment's net sales and SOP for 2009 and 2008 (in millions):
Net sales
SOP
For the Year Ended
December 31,
2009
$ 4,111
573
2008
$ 4,305
483
Amount
Change
$(194)
90
Sales volumes increased less than 1% for the year ended December 31, 2009, compared with the year ended December 31,
2008. The absence of sales of Hansen’s products following the termination of that distribution agreement during the fourth quarter
of 2008 negatively impacted total volumes by approximately 1%. Total CSD volumes increased 1% led by increases in Dr Pepper
whose volumes increased high single digits led by the launch of the Cherry line extensions. Volumesfor our Core 4 brands increased
low single digits. Total NCB volumes increased 1% due to a shift to value products such as Hawaiian Punch, which increased low
double digits, partially offset by volume declines in the other NCB brands.
Net sales decreased $194 million for the year ended December 31, 2009, compared with the year ended December 31, 2008.
Hansen’s termination reduced net sales for the year ended December 31, 2009, by $200 million. Additionally, net sales were
favorably impacted by volume and price/mix increases, primarily in CSDs, offset by unfavorable impact of product mix.
SOP increased $90 million for the year ended December 31, 2009, compared with the year ended December 31, 2008. The
increase was driven primarily due to lower commodity costs, including packaging materials and sweeteners, and lower
transportation and warehouse costs driven by supply chain network optimization efforts in addition to a decrease in fuel costs and
carrier rates. These increases in SOP were partially offset by increased advertising and marketing costs and costs associated with
information technology (“IT”) infrastructure upgrades. The Hansen’s termination reduced SOP by approximately $40 million.
36