Snapple 2012 Annual Report Download - page 3

DPS IS
GROWING
IN FOUNTAIN
ALL OTHER
DPS BRANDS
DIET DR PEPPER
DR PEPPER 66,497
29,663
36,254
Since 2010, DPS has placed more than 130,000 valves in
food service and other establishments selling fountain drinks.
2010 | 13,745
2011 | 12,426
2012 | 10,083
2010 | 9,198
2011 | 9,499
2012 | 10,966
2010 | 19,921
2011 | 22,428
2012 | 24,148
The strategies that we established as a new stand-alone company remain as relevant today as they did in 2008.
We continue to build and enhance our leading brands; pursue profitable channels, packages and categories; leverage
our integrated business model; strengthen our route to market and improve our operating efficiency – all with
a mindset of rapid continuous improvement (RCI). Here’s a taste of our wins in 2012:
฀ •฀We฀grew฀Dr฀Pepper฀dollar฀share฀for฀the฀fifth฀consecutive฀year,฀up฀0.2฀points.฀
฀ •฀Based฀on฀positive฀consumer฀response฀to฀Dr฀Pepper฀TEN we tested five additional TEN products: 7UP TEN,
A&W TEN, Sunkist® TEN™ Soda, Canada Dry TEN and RC TEN. In test markets for these products,
฀ ฀ 40฀percent฀of฀dollar฀sales฀were฀incremental฀to฀the฀CSD฀category.฀Backed฀by฀these฀promising฀results,฀we฀took
these TEN products nationwide in January 2013.
฀ •฀We฀grew฀Snapple฀volume฀3฀percent,฀ensuring฀that฀Snapple฀is฀enjoyed฀by฀more฀consumers฀across฀the฀country.
฀ •฀We฀launched฀Snapple฀Diet฀Half฀‘n฀Half฀Lemonade฀Iced฀Tea,฀which฀gained฀distribution฀quickly฀and฀has฀already฀฀
become the fourth fastest-selling SKU in the Snapple product line.
฀ •฀Driven฀by฀local฀activation฀events฀such฀as฀sponsorships฀of฀sporting฀events฀and฀The฀Latin฀GRAMMY® Awards,
Clamato sales continued to outperform the vegetable juice category, up 15 percent in 2012.
฀ •฀Canada฀Dry฀volume฀increased฀6฀percent฀on฀top฀of฀double-digit฀gains฀in฀2011.
฀ •฀Retail฀sales฀on฀priority฀brands฀in฀Canada฀were฀up฀1฀percent,฀outpacing฀the฀liquid฀refreshment฀beverages
฀ ฀ (LRB)฀category฀by฀0.2฀percentage฀points.฀
฀ •฀Our฀Latin฀America฀Beverages฀segment฀grew฀volume฀2฀percent,฀driven฀by฀increases฀in฀Peñafiel,฀Crush,฀Clamato฀฀
฀ ฀ and฀Squirt.฀In฀Mexico,฀we฀grew฀dollar฀share฀of฀total฀LRB฀by฀0.2฀points.
฀ •฀We฀increased฀trial฀and฀sampling฀opportunities฀at฀the฀fountain,฀adding฀more฀than฀45,000฀valves฀and฀growing
fountain volume by 3 percent.
฀ •฀With฀a฀focus฀on฀quality฀placements
and the right product selections, we
added more than 14,000 pieces of
฀ ฀ cold-drink฀equipment.฀
฀ •฀We฀increased฀display฀tie-in฀rates฀by
1.2 percentage points on regular
Dr Pepper within the Coca-Cola
bottling system.
฀ •฀Since฀beginning฀our฀rapid฀continuous
improvement (RCI) journey in 2011,
more than 3,000 employees have
participated in 200-plus RCI projects
across the company. As a result,
we’ve reduced days sales in inventory
by 40 percent and closed 10 outside
warehouses, freeing up resources to
redirect into growing the business.
In addition, we’ve cut our fleet delivery
miles traveled by more than 1 million,
removing 3.7 million pounds of
greenhouse gas emissions from
the atmosphere.
DPS฀is฀uniquely฀positioned฀to฀continue฀to฀capitalize฀on฀these฀trends.฀In฀fact,฀we’re฀adding฀incremental฀sales฀to฀the฀
being฀a฀line฀extension,฀TEN฀is฀a฀critical฀part฀of฀a฀long-term฀strategy฀designed฀to฀increase฀consumption฀frequency฀and฀
Our฀iconic฀flavors฀and฀their฀devoted฀followers฀are฀
flavors฀have฀grown฀21฀percent฀over฀the฀last฀three฀years.฀In฀California,฀there’s฀a฀new฀sales฀team฀in฀town฀–฀our฀Latino฀
value,฀one฀thing฀remains฀the฀same:฀When฀it฀comes฀to฀liquid฀refreshment,฀taste฀is฀king.฀In฀2013,฀our฀unrivaled฀brand฀
around฀goal฀deployment,฀ensuring฀alignment฀across฀functions฀and฀cultivating฀a฀Lean฀mindset฀in฀our฀senior฀leaders฀and฀
our฀leaders฀and฀their฀teams฀through฀our฀Mobilizing฀for฀ACTION฀initiative.฀The฀talent฀and฀commitment฀of฀our฀employees฀
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