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4
•#1 portfolio of mixer brands in the U.S.
•#1 Bloody Mary brand (Mr & Mrs T) in the U.S.
•Leading mixers (Margaritaville and Rose's) in their flavor categories
_______________________________________________________
The market and industry data in this Annual Report on Form 10-K is from independent industry sources, including The
Nielsen Company ("Nielsen") and Beverage Digest. See "Market and Industry Data" below for further information.
All information regarding our brand market positions in the U.S. is from Nielsen and is based on retail dollar sales in
2012.
The Sunkist soda logo is a registered trademark of Sunkist Growers, Inc. The Rose's logo is a registered trademark of
Cadbury Ireland Limited, which was acquired by International, Inc. (" ") (formerly known as Kraft
Foods, Inc.) on February 2, 2010. The Margaritaville logo is a registered trademark of Margaritaville Enterprises, LLC.
Each of these logos are used by us under license.
All other logos in the table above are registered trademarks of DPS or its subsidiaries.
In the CSD market in the U.S. and Canada, we participate primarily in the flavored CSD category. Our key brands are Dr
Pepper, Canada Dry, 7UP, Squirt, Crush, A&W, Sunkist soda, Schweppes and Sun Drop, and we also sell regional and smaller
niche brands. In the CSD market we distribute finished beverages and manufacture beverage concentrates and fountain syrups.
Beverage concentrates are highly concentrated proprietary flavors used to make syrup or finished beverages. We manufacture
beverage concentrates that are used by our own Packaged Beverages and Latin America Beverages segments, as well as sold to
third party bottling companies. According to Nielsen, we had a 20.7% share of the U.S. CSD market in 2012 (measured by retail
sales), which increased 0.1% compared to 2011. We also manufacture fountain syrup that we sell to the foodservice industry
directly, through bottlers or through third parties.
In the NCB market segment in the U.S., we participate primarily in the ready-to-drink tea, juice, juice drinks and mixer
categories. Our key NCB brands are Snapple, Hawaiian Punch, Mott's, and Clamato, and we also sell regional and smaller niche
brands. We manufacture most of our NCBs as ready-to-drink beverages and distribute them through our own distribution network
and through third parties or direct to our customers' warehouses. In addition to NCB beverages, we also manufacture Mott's apple
sauce as a finished product.
In Mexico and the Caribbean, we participate primarily in the carbonated mineral water, flavored CSD, bottled water and
vegetable juice categories. Our key brands in Mexico include Squirt, Peñafiel, Aguafiel, Crush and Clamato. In Mexico, we
manufacture and sell our brands through both our own manufacturing and distribution operations and third party bottlers. In the
Caribbean, we distribute our products solely through third party distributors and bottlers.
In 2012, we manufactured and/or distributed approximately 47% of our total products sold in the U.S. (as measured by volume).
In addition, our businesses manufacture and distribute a variety of brands owned by third parties in specified licensed geographic
territories.
OUR STRENGTHS
The key strengths of our business are:
Strong portfolio of leading, consumer-preferred brands. We own a diverse portfolio of well-known CSD and NCB brands.
Many of our brands enjoy high levels of consumer awareness, preference and loyalty rooted in their rich heritage, which drive
their market positions. Our diverse portfolio provides our bottlers, distributors and retailers with a wide variety of products and
provides us with a platform for growth and profitability. We are the #1 flavored CSD company in the U.S. Our largest brand, Dr
Pepper, is the #2 flavored CSD in the U.S., according to Nielsen, and our Snapple brand is a leading ready-to-drink tea. Overall,
in 2012, approximately 83% of our volume was generated by brands that hold either the #1 or #2 position in their category. The
strength of our significant brands has allowed us to launch innovations and brand extensions such as our Snapple Diet Half 'n Half
in 2012. During 2012, we test marketed five new additions (7UP, Sunkist soda, A&W, Canada Dry and RC Cola) to our TEN
platform and launched these products nationally in early 2013.