Snapple 2009 Annual Report Download - page 10

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expandingdistributionandavailability
One of the greatest opportunities for DPS
rests with our ability to close distribution
gaps and increase the availability of our
brands, particularly the Dr Pepper, Core 4
and Snapple trademarks. Even in areas
where distribution is plentiful, we are working
to expand availability of line extensions and
packaging options. Our balanced route to
market and strong alignment with our
bottling and distributing partners are
key to our success.
Building Per-Capita Consumption
for Priority Brands
As one of the most recognized brands in our
portfolio, Dr Pepper is consistently well-
known and consumer-preferred, but its per-
capita consumption rates vary widely across
the U.S., from a low of eight 8-oz. servings
per person per year in Massachusetts to a
high of 238 servings in Oklahoma. Stepped-
up distribution and availability have the
potential to grow Dr Pepper from a national
average of 62 servings to 100, equating
to a potential 300 million-plus cases of
incremental volume. Likewise, our Core 4
brands and Crush average 11 servings per
person per year, but we believe the per-
capita opportunity, with the right investment
over time, is 20 servings per person. That
would translate to more than 350 million
incremental cases per year. We’re already
tapping into this potential
—
in 2009
we saw Dr Pepper consumption increase
in 80 percent of the coastal markets in
which we made incremental investments.
Capitalizing on the West Coast
Growth Opportunity
Brands that go through our warehouse-
direct system have tremendous upside
in the western United States, and we’re
actively building our business there. Our
new production and distribution facility
in Victorville, Calif., has opened, and we
anticipate that it will be certified as a
Leadership in Energy and Environmental
Design (LEED) facility by the U.S. Green
Building Council. With our Victorville plant,
we’ll dramatically increase our production
capability in the West and complete our
hub-and-spoke model for all five major
regions of the United States. This 850,000
square-foot facility gives us a platform for
growth and will help us boost West Coast
market share for brands like Mott’s
through better customer service and
increased efficiencies in production
and delivery logistics.
In preparation for this expanded capability,
we’ve been ramping up our sales efforts
for our packaged beverages in the region,
achieving impressive results. Our national
account teams have secured more than 1,400
new points of distribution for Mott’s apple
sauce and juice and more than 3,000 new
Hawaiian Punch placements at key retail
accounts and grocery distributors. In 2010
we’ll enhance support for our western growth
plans through an expanded selling team
and a coordinated mix of national account
sales and local retail execution.
DR PEPPER SNAPPLE GROUP 2009 ANNUAL REPORT
8
distribution and availability
No.1 or
No.2 brands
generate
approximately
75%
of our
volume