Snapple 2014 Annual Report Download - page 12

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9
Our Trademarks. Our trademark portfolio includes approximately 2,200 registrations and applications in the U.S., Canada,
Mexico and other countries. Brands we own through various subsidiaries in various jurisdictions include Dr Pepper, Canada Dry,
7UP, Squirt, Peñafiel, Crush, A&W, Schweppes, RC Cola, Sun Drop, Venom, Hawaiian Punch, Snapple, Mott's, Clamato, Aguafiel,
Deja Blue, Mistic, ReaLemon, Mr & Mrs T and Nantucket Nectars. 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 trademark registrations for 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 CSD 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, Country Time, Stewart's, Rose's, Orangina 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 Big Red, FIJI mineral water, AriZona tea, Vita Coco coconut water, Bai 5, Neuro beverages, Sparkling Fruit2O and Hydrive
energy drinks. 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. We also apply a marketing return on investment analysis to ensure we focus our marketing
spend in a manner to drive profitable and sustainable growth in our key brands.
MANUFACTURING
As of December 31, 2014, we operated 21 manufacturing facilities across the U.S. and Mexico. 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 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 2014, 90% of our manufactured volumes came from our brands and 10% from third party and private-label products. We
also use third party manufacturers to package our products for us on a limited basis.