Snapple 2014 Annual Report Download - page 40

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37
LATIN AMERICA BEVERAGES
The following table details our Latin America Beverages segment's net sales and SOP for the years ended December 31, 2013
and 2012 (in millions):
For the Year Ended
December 31,
2013 2012 Change
Net sales $ 462 $ 416 $ 46
SOP 61 51 10
Volume. Sales volume increased 3% for the year ended December 31, 2013 as compared with the year ended December 31,
2012. The increase in volume was led by a double-digit increase in Peñafiel as a result of product and package innovation and a
6% increase in Aguafiel due to increased promotional activity. Clamato increased 8% while Dr Pepper increased by double-digits.
Our other brands in total increased 7%. These increases in sales volume were partially offset by a 4% decline in Squirt as a result
of higher pricing and inventory reductions by third party bottlers, a double-digit decline in 7UP and a 5% decrease in Crush.
Net Sales. Net sales increased $46 million for the year ended December 31, 2013 compared with the year ended December
31, 2012. Net sales increased as a result of favorable product mix, increased sales volumes and $12 million of favorable foreign
currency translation.
SOP. SOP increased $10 million for the year ended December 31, 2013 compared with the year ended December 31, 2012,
primarily due to the gross margin impact of favorable product mix, increased sales volumes and ongoing productivity improvements.
These favorable drivers were partially offset by increases in people costs, marketing investments, other manufacturing costs,
commodity costs, which were led by sweeteners, and higher logistics costs.
LIQUIDITY AND CAPITAL RESOURCES
Trends and Uncertainties Affecting Liquidity
Customer and consumer demand for our products may be impacted by various risk factors discussed in Item 1A, "Risk Factors",
including recession or other economic downturn in the U.S., Canada, Mexico or the Caribbean, which could result in a reduction
in our sales volume. Similarly, disruptions in financial and credit markets may impact our ability to manage normal commercial
relationships with our customers, suppliers and creditors. These disruptions could have a negative impact on the ability of our
customers to timely pay their obligations to us, thus reducing our cash flow, or the ability of our vendors to timely supply materials.
We believe that the following trends and uncertainties may also impact liquidity:
• our continued repurchases of our outstanding common stock pursuant to our repurchase programs;
• continued payment of dividends;
• continued capital expenditures;
• seasonality of our operating cash flows could impact short-term liquidity;
• our ability to issue unsecured commercial paper notes ("Commercial Paper") on a private placement basis up to a maximum
aggregate amount outstanding at any time of $500 million;
• acquisitions of regional bottling companies, distributors and distribution rights to further extend our geographic coverage
or access to new products; and
• our ability to refinance $500 million of our outstanding 2.90% senior notes due January 15, 2016 (the "2016 Notes"). We
intend to issue senior notes to refinance the 2016 Notes before the due date.