Snapple 2012 Annual Report Download - page 19

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1
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 provides highlights about our company:
•#1 flavored CSD company in the U.S.
•Approximately 83% of our volume from brands that are either #1 or #2 in their category
•#3 North American liquid refreshment beverage ("LRB") business
•$6.0 billion of net sales in 2012 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 Americas Beverages by integrating the way we managed our four North American businesses (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.
We were incorporated in Delaware on October 24, 2007. 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.
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 2012, 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 2012. The highlights about
our significant brands are as follows:
CSDs
• #1 in its flavor category and #2 overall flavored CSD in the U.S.
•Distinguished by its unique blend of 23 flavors and loyal consumer following
•Flavors include regular, diet, cherry and Dr Pepper TEN
•Oldest major soft drink in the U.S., introduced in 1885