Snapple 2012 Annual Report Download - page 27

9
INTELLECTUAL PROPERTY AND TRADEMARKS
Our Intellectual Property. We possess a variety of intellectual property rights that are important to our business. We rely on
a combination of trademarks, copyrights, patents and trade secrets to safeguard our proprietary rights, including our brands and
ingredient and production formulas for our products.
Our Trademarks. Our trademark portfolio includes approximately 2,300 registrations and applications in the U.S., Canada,
Mexico and other countries. Brands we own through various subsidiaries in various jurisdictions include Dr Pepper, 7UP, A&W,
Canada Dry, RC Cola, Schweppes, Squirt, Crush, Peñafiel, Sun Drop, Aguafiel, Snapple, Mott's, Hawaiian Punch, Clamato, Mistic,
Nantucket Nectars, Mr & Mrs T, ReaLemon, Venom and Deja Blue. We own trademark registrations for most of these brands in
the U.S., and we own trademark registrations for some but not all of these brands in Canada, Mexico and other countries. We also
own a number of smaller regional brands. Some of our other trademark registrations are in countries where we do not currently
have any significant level of business. In addition, in many countries outside the U.S., Canada and Mexico, our rights to many of
our brands, including our Dr Pepper trademark and formula, were sold by Cadbury Schweppes beginning over a decade ago to
third parties including, in certain cases, to competitors such as Coca-Cola.
Trademarks Licensed from Others. We license various trademarks from third parties, which generally allow us to manufacture
and distribute certain products or brands throughout the U.S. and/or Canada and Mexico. For example, we license from third
parties the Sunkist soda, Welch's, Country Time, Orangina, Stewart's, Rose's, Holland House and Margaritaville trademarks.
Although these licenses vary in length and other terms, they generally are long-term, cover the entire U.S. and/or Canada and
Mexico and generally include a royalty payment to the licensor.
Licensed Distribution Rights. We have rights in certain territories to bottle and/or distribute various brands we do not own,
such as AriZona, FIJI, Vita Coco and Neuro. Some of these arrangements are relatively shorter in term and limited in geographic
scope, and the licensor may be able to terminate the agreement upon an agreed period of notice, in some cases without payment
to us.
Intellectual Property We License to Others. We license some of our intellectual property, including trademarks, to others.
For example, we license the Dr Pepper trademark to certain companies for use in connection with food, confectionery and other
products. We also license certain brands, such as Dr Pepper and Snapple, to third parties for use in beverages in certain countries
where we own the brand but do not otherwise operate our business.
MARKETING
Our marketing strategy is to grow our brands through continuously providing new solutions to meet consumers' changing
preferences and needs. We identify these preferences and needs and then develop innovative consumer and shopper programs to
address the opportunities. Solutions include new and reformulated products, improved packaging design, pricing and enhanced
availability. We use advertising, sponsorships, merchandising, public relations, promotions and social media to provide maximum
impact for our brands and messages.
MANUFACTURING
As of December 31, 2012, we operated 20 manufacturing facilities across the U.S. and Mexico, excluding our manufacturing
facility for our joint venture with Acqua Minerale San Benedetto. Almost all of our CSD beverage concentrates are manufactured
at a single plant in St. Louis, Missouri. All of our manufacturing facilities are either regional manufacturing facilities, with the
capacity and capabilities to manufacture many brands and packages, facilities with particular capabilities that are dedicated to
certain brands or products, or smaller bottling plants with a more limited range of packaging capabilities.
We employed approximately 6,000 full-time manufacturing employees in our facilities as of December 31, 2012. We have a
variety of production capabilities, including hot-fill, cold-fill and aseptic bottling processes, and we manufacture beverages in a
variety of packaging materials, including aluminum, glass and PET cans and bottles and a variety of package formats, including
single-serve and multi-serve packages and "bag-in-box" fountain syrup packaging.
In 2012, 88% of our manufactured volumes came from our brands and 12% from third party and private-label products. We
also use third party manufacturers to package our products for us on a limited basis.
As of December 31, 2012 and 2011, we owned property, plant and equipment, net of accumulated depreciation, totaling $1,117
million and $1,080 million in the U.S. respectively, and $85 million and $72 million in international locations respectively.