Snapple 2015 Annual Report Download

2015 HIGHLIGHTS
RETURNING CASH TO SHAREHOLDERS OVER TIME
*CURRENCY NEUTRAL FINANCIAL METRICS DETERMINED BY CONVERTING OUR CURRENT
PERIOD LOCAL CURRENCY FINANCIAL RESULTS USING THE PRIOR PERIOD FOREIGN CURRENCY
EXCHANGE RATES.
**2015 CORE DILUTED EARNINGS PER SHARE EXCLUDES UNREALIZED COMMODITY-RELATED
MARK-TO-MARKET LOSSES, A NON-CASH BRAND IMPAIRMENT CHARGE FOR GARDEN COCKTAIL
AND AN ADJUSTMENT TO A PREVIOUSLY DISCLOSED LEGAL PROVISION. 2014 CORE DILUTED
EARNINGS PER SHARE EXCLUDES UNREALIZED COMMODITY-RELATED MARK-TO-MARKET
LOSSES, SEPARATION RELATED CHARGES, AN ADJUSTMENT TO A PREVIOUSLY DISCLOSED LEGAL
PROVISION AND A SETTLEMENT CHARGE RELATED TO THE PURCHASE OF ANNUITIES FOR CERTAIN
PARTICIPANTS RECEIVING BENEFITS IN OUR U.S. DEFINED BENEFIT PENSION PLANS.
COMPOUND ANNUAL GROWTH RATE INCLUDES CHANGES
IN STOCK PRICE SINCE DEC. 31, 2010, AND REINVESTMENT OF
DIVIDENDS. THE PEER GROUP INDEX COMPRISES: THE COCA-COLA
CO., PEPSICO, INC., MONSTER BEVERAGE CORP., THE COTT CORP.
AND NATIONAL BEVERAGE CORP.
* DPS MADE A TAX PAYMENT OF $531 MILLION IN 2012 RELATED TO THE PEPSICO, INC. AND THE COCA-COLA CO. LICENSING AGREEMENTS.
NET
SALES
DPS
S&P 500
SEGMENT
OPERATING
PROFIT
**CORE
EARNINGS
PER SHARE
2012 2013 2014 2015
DIVIDENDS PAID
SHARE REPURCHASES
2015 • $6,397
2015 • $1,629
2015 • $4.10
2014 • $6,121
2014 • $1,504
$284 $302 $317 $355
$400 $400 $400
$521
2014 • $3.65
At Dr Pepper Snapple Group, our success is driven by our leadership position in fl avors, our great people, and our proven, consistent
strategy to build our brands, execute with excellence and drive rapid continuous improvement (RCI) across the organization.
In 2015, this winning combination resulted in another year of strong performance. We grew both dollar and volume share in carbonated
soft drinks (CSDs) and shelf-stable juices on key brands and packages. Our brand partnerships and product tie-ins with sporting events,
music and movies engaged consumers and built our brands while bringing fun and fl avor to our growing fan base. Through product
and package innovation, we met consumers’ evolving tastes and needs with new products such as Snapple Straight Up Tea and on-
the-go packaging options such as Hawaiian Punch pouches. RCI is becoming the way we work at DPS, and our Lean tracks, which are
cross-functional project teams targeting the areas of greatest opportunity for breakthrough change in our organization, helped to drive
growth and productivity improvements. In addition, we rolled out visual management boards across the company, and our teams are
using them to visually track their progress as they create effi ciencies and target growth in areas they control. Finally, we continued to
deliver shareholder value, returning $876 million to our shareholders through dividends and share repurchases in 2015.
25%
10%
PEER GROUP
INDEX 12%
$876
$717
$702
$684*
ANNUALIZED TOTAL
SHAREHOLDER RETURN
+12%
+8%
+5%
(IN MILLIONS, EXCEPT EARNINGS PER SHARE)
(THROUGH DEC. 31, 2015)
(IN MILLIONS)
CURRENCY NEUTRAL FINANCIAL SNAPSHOT*
BUILDING OUR BRANDS
SUCCESSFUL MARKETING PROGRAMS – SUCH AS THE LONG-STANDING
DR PEPPER TUITION GIVEAWAY AND THE STADIUM-FAVORITE LARRY CULPEPPER
CAMPAIGN – DROVE CONSUMER ENGAGEMENT AND RESULTED IN DR PEPPER
OUTPERFORMING THE CSD CATEGORY IN VOLUME GROWTH BY +2.5 POINTS
DURING THE CAMPAIGN PERIOD. SOURCE: NIELSEN
POINTS
+2.5
+9%
+7%
+14%
VOLUME
MOTT’S SINGLE-SERVE JUICE
VOLUME
PEÑAFIEL BRAND
MOTT’S SINGLE-SERVE SAUCE
CLAMATO WAS USED TO MIX MORE THAN
AT A MAJOR LEAGUE BASEBALL STADIUM.
CLAMATO
MICHELADAS
VOLUME
VOLUME
CAMPAIGNS SUPPORTING THE LAUNCH OF THE STRAIGHT
UP TEA LINE AND LIMITED-TIME OFFERINGS FOR FLAVORS
SUCH AS LADY LIBERTEA CONTRIBUTED TO SNAPPLE’S
GROWTH. SOURCE: COMPANY DATA
MOTT’S CONTINUES TO DELIGHT MOMS AND KIDS ALIKE WITH
ITS GREAT TASTE AND SNACK & GO PACKAGE OPTIONS. SOURCE: COMPANY DATA
CANADA DRY GINGER ALE MARKET SHARE IS BUBBLING OVER – UP +2.3
POINTS IN 2015 – AND REPRESENTS 56 PERCENT OF THE TOTAL GINGER
ALE CATEGORY VOLUME. SOURCE: NIELSEN
DISTRIBUTION GAINS AND FLAVOR EXTENSIONS SUCH AS FRESADA
CONTRIBUTED TO PEÑAFIEL’S GROWTH. SOURCE: COMPANY DATA
STRONG DISTRIBUTION GAINS IN MEXICO AND FLAVOR EXTENSIONS
SUCH AS PREPARADO AND LIMÓN CONTRIBUTED TO CLAMATO’S GROWTH.
SOURCE: COMPANY DATA
165,000
+8% +30%
VOLUME VOLUME
+12%
CLAMATO BRAND
VOLUME
+6%
SNAPPLE BRAND
OUTPERFORMED
CSD CATEGORY BY
VOLUME
GINGER ALE SPARKLING
UNSWEETENED
WATER
4% VOLUME
GROWTH
ELIMINATED MORE THAN
$5 MILLION NON-WORKING
MARKETING DOLLARS
TO BE REINVESTED BACK
INTO CONSUMER-FACING
ACTIVITIES.
$5MILLION
DRIVING EXECUTIONAL EXCELLENCE
RAPID CONTINUOUS IMPROVEMENT
WE ALSO HELD DISTRIBUTION FOR CSDS ACROSS KEY BRANDS AND
PACKAGES IN THE GROCERY CHANNEL AND GREW DISTRIBUTION OF
SNAPPLE PREMIUM BY +1.2 POINTS IN THE CONVENIENCE CHANNEL.
SOURCE: NIELSEN
SOURCE: 2015 NIELSEN DATA FOR ALL MEASURED CHANNELS: U.S. ALL OUTLETS
COMBINED INCLUDING CONVENIENCE THROUGH JAN. 2, 2016; CANADA THROUGH
DEC. 26, 2015; MEXICO THROUGH DECEMBER 2015.
*LIQUID REFRESHMENT BEVERAGES
VOLUME AND DOLLAR SHARE GROWTH FOUNTAIN FOODSERVICE
ALLIED BRANDS
ALL-COMMODITY VOLUME
DISTRIBUTION GAINS
CANADAUSA MEXICO
CANADA DRY
AND SCHWEPPES
SPARKLING WATER
MOTT’S
SINGLE-SERVE
JUICE
SNAPPLE
PREMIUM
GROCERY
+1%
+0.2 VOLUME
QUICK-SERVICE
RESTAURANT SHARE
POINTS
WHILE REPRESENTING A SMALL PORTION OF OUR TOTAL PORTFOLIO, ALLIED BRANDS
ARE BECOMING A MORE IMPORTANT PART OF OUR STRATEGY, ALLOWING US TO
PARTICIPATE IN EMERGING CATEGORIES. SOURCE: COMPANY DATA
SOURCE: COMPANY DATA
SOURCE: CREST AND
COMPANY DATA
GAINED DISTRIBUTION
AND AVAILABILITY FOR
CANADA DRY BY CLOSING
MORE THAN 29,000
DISTRIBUTION VOIDS.
29,000
ADDED MORE THAN
42,000
NEW
FOUNTAIN
VALVES
OUR ASSORTMENT OF ALLIED BRANDS
CONTRIBUTED TO
IN OUR NON-CARBONATED
PORTFOLIO IN 2015.
REDUCED DRIVER CHECK-
IN/OUT TIME AT DIRECT-
STORE DELIVERY SITES BY
ABOUT 50 PERCENT.
ELIMINATED MORE
THAN 250,000 ANNUAL
TRANSPORTATION MILES
BY SHIPPING DIRECT TO
CUSTOMERS.
INCREASED SALES NEARLY
40 PERCENT FOR ENERGY
AND WATER CATEGORIES IN
OUR OHIO VALLEY TEL-SELL
REGIONS.
50% 250,000 40%
+0.4 +0.8 +1.1
+0.2 +1.0 +1.2
POINTS VOLUME
SHARE OF CSDS POINTS VOLUME
IN LRB* POINTS VOLUME
TOTAL LRB*
(EXCLUDING COLA)
POINTS DOLLAR
SHARE OF CSDS POINTS DOLLAR IN LRB* POINTS DOLLAR TOTAL LRB*
(EXCLUDING COLA)
+9.4+3.5+0.8 POINTSPOINTSPOINTS