Snapple 2008 Annual Report Download - page 6

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President & CEO Larry Young and Chairman of the Board Wayne Sanders
Letter to Stockholders
To Our Stockholders:
With a portfolio fueled by  avor, Dr Pepper Snapple
Group began a new life as an independent beverage
company in 2008.
Our spino from Cadbury and May 7 listing on the
New York Stock Exchange was the culmination of
a series of moves to create a company with the
leading portfolio of  avors and a broad and  exible
route to market. It was also one of many signi cant
accomplishments in a year of change. In the midst
of the most di cult economic environment in
more than a generation, we:
Grew U.S. dollar share in carbonated so drinks •
(CSDs) for a  h straight year – the only major
beverage business to achieve that feat
Raised nearly $4 billion in debt despite challenging •
capital and liquidity markets
Generated $709 million in cash from operations and •
paid down $395 million in debt
Relocated our Research & Development Center •
from Trumbull, Conn., to our headquarters in Plano,
Texas, and opened a state-of-the-art pilot plant in
Irving, Texas
Successfully launched innovations such as Canada •
Dry Green Tea Ginger Ale and Venom Energy
Signed major distribution agreements for the Crush •
brand and secured equity positions in the companies
that own and market the Hydrive, Big Red and
All Sport brands
2008 Results: Delivering Top-Line Growth
in a Tumultuous Economic Climate
Even under ideal marketplace conditions, spinning
o a major consumer packaged goods business is
a daunting task. Our ability to manage a complex
separation in such a challenging climate while focusing
on our consumers and customers is a testament to both
our dedicated employees and the support of our great
retailers, bo ling partners and distributors.
On the strength of price increases, comparable revenue
rose 4 percent in 2008, excluding sales of licensed
brands that we no longer distribute and a bo ling
business acquired in mid-2007. Price increases, as well as
savings from a 2007 restructuring program, helped o set
a slight decline in sales volume and higher commodity
and transportation costs. As a result, segment operating
pro t on a comparable basis remained  at.
Due to deteriorating macroeconomic and market
conditions late in the year, we recorded a non-cash,
a er-tax impairment charge of $2.74 per share related
to goodwill and certain intangible assets. Excluding this
charge and certain other items, the company earned
$1.85 per share.
LETTER
STOCKHOLDERS
to
2
If you’re not drinking a cola, chances are you’re enjoying one of our brands.