Snapple 2012 Annual Report Download - page 5

Without flavors, w e'd be just another cola company.
Consumers selected DPS as the best among soft drink
companies in the American Customer Satisfaction Index™
report for 2012. We earned a score of 87, an increase
of 6 percent over 2011.
DPS was named to The Civic 50 as one of the top 50
S&P companies making a difference in their communities.
฀ •฀We฀grew฀Dr฀Pepper฀dollar฀share฀for฀the฀fifth฀consecutive฀year,฀up฀0.2฀points.฀
฀ •฀Based฀on฀positive฀consumer฀response฀to฀Dr฀Pepper฀TEN
฀ ฀ 40฀percent฀of฀dollar฀sales฀were฀incremental฀to฀the฀CSD฀category.฀Backed฀by฀these฀promising฀results,฀we฀took
฀ •฀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฀฀
฀ •฀Driven฀by฀local฀activation฀events฀such฀as฀sponsorships฀of฀sporting฀events฀and฀The฀Latin฀GRAMMY
฀ •฀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
฀ •฀With฀a฀focus฀on฀quality฀placements
฀ ฀ cold-drink฀equipment.฀
฀ •฀We฀increased฀display฀tie-in฀rates฀by
฀ •฀Since฀beginning฀our฀rapid฀continuous
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฀
Board of Directors and Corporate Governance Update
Since our spin-off in 2008, we have been privileged to have a distinguished and experienced board of directors to
provide oversight and help guide our business. Going forward, we will miss the contributions of one of our directors,
Mike Weinstein, who announced his resignation from the board effective Dec. 31, 2012. We thank Mike for his
leadership during his nearly four years of service to DPS.
From a governance perspective, we provided shareholders with a stronger voice in the election of our directors in
2012, eliminating our classified board structure and establishing annual elections beginning in 2015.
Looking Forward
While today’s consumer is changing, becoming more aware of health and wellness and seeking more convenience and
value,฀one฀thing฀remains฀the฀same:฀When฀it฀comes฀to฀liquid฀refreshment,฀taste฀is฀king.฀In฀2013,฀our฀unrivaled฀brand฀
portfolio positions us to win with innovative products such as our TEN platform that delivers both great taste and
fewer calories. We’ll also grow our brands by continuing to invest heavily behind them, developing strong marketing
campaigns such as our “/1” or “one of one” Dr Pepper campaign, which engages consumers by celebrating what
makes each of them one of a kind.
In addition to building our brands and engaging consumers, we’ll continue to use RCI to deliver improvements in cash
flow and profitability and create a sustainable foundation for long-term growth. In 2013, we’ll focus our RCI efforts
around฀goal฀deployment,฀ensuring฀alignment฀across฀functions฀and฀cultivating฀a฀Lean฀mindset฀in฀our฀senior฀leaders฀and฀
their teams.
We’ve found that the best change and improvement comes from our people, so in 2013 we’ll conduct RCI events at
additional sites to engage more of our employees. At the same time, we’ll continue to build our bench by developing
our฀leaders฀and฀their฀teams฀through฀our฀Mobilizing฀for฀ACTION฀initiative.฀The฀talent฀and฀commitment฀of฀our฀employees฀
drive the success and growth of our business, and we thank each individual for his or her contributions.
At DPS, we firmly believe in turning up the volume on flavor. With a focus on bringing consumers back to CSDs and
energizing the category, we’ll use the strength of our entire brand portfolio and the commitment of our team to drive
profitable volume and sales growth and create shareholder value in 2013 and beyond.
Sincerely,
Wayne R. Sanders
Chairman of the Board
Larry D. Young
President & Chief Executive Officer
March 4, 2013
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