Snapple 2009 Annual Report Download - page 21

PART I
ITEM 1. BUSINESS
Our Company
Dr Pepper Snapple Group, Inc. is a leading integrated brand owner, manufacturer and distributor of non-
alcoholic beverages in the United States, Canada and Mexico with a diverse portfolio of flavored (non-cola)
carbonated soft drinks (“CSDs”) and non-carbonated beverages (“NCBs”), including ready-to-drink teas, juices,
juice drinks and mixers. We have some of the most recognized beverage brands in North America, with significant
consumer awareness levels and long histories that evoke strong emotional connections with consumers. References
in this Annual Report on Form 10-K to “we”, “our”, “us”, “DPS” or “the Company” refer to Dr Pepper Snapple
Group, Inc. and its subsidiaries, unless the context requires otherwise.
The following table provides highlights about our company:
• #1 flavored CSD company in the United States
• Approximately 75% of our volume from brands that are either #1 or #2 in their
category
• #3 North American liquid refreshment beverage business
• $5.5 billion of net sales in 2009 from the United States (90%), Canada (4%) and
Mexico and the Caribbean (6%)
History of Our Business
We have built our business over the last three decades through a series of strategic acquisitions. In the 1980’s
through the mid-1990’s, we began building on our then existing Schweppes business by adding brands such as
Mott’s, Canada Dry and A&W and a license for Sunkist soda. We also acquired the Peñafiel business in Mexico. In
1995, we acquired Dr Pepper/Seven Up, Inc., having previously made minority investments in the company. In
1999, we acquired a 40% interest in Dr Pepper/Seven Up Bottling Group, Inc., (“DPSUBG”), which was then our
largest independent bottler, and increased our interest to 45% in 2005. In 2000, we acquired Snapple and other
brands, significantly increasing our share of the United States NCB market segment. In 2003, we created Cadbury
Schweppes Americas Beverages by integrating the way we managed our four North American businesses (Mott’s,
Snapple, Dr Pepper/Seven Up and Mexico). During 2006 and 2007, we acquired the remaining 55% of DPSUBG
and several smaller bottlers and integrated them into our Packaged Beverages segment, thereby expanding our
geographic coverage.
Separation from Cadbury and Formation of Our Company
In 2008, Cadbury Schweppes plc (“Cadbury Schweppes”) separated its beverage business in the United States,
Canada, Mexico and the Caribbean (the “Americas Beverages business”) from its global confectionery business by
contributing the subsidiaries that operated its Americas Beverages business to us. The separation involved a number
of steps, and as a result of these steps:
• On May 1, 2008, Cadbury plc (“Cadbury plc”) became the parent company of Cadbury Schweppes. Cadbury
plc and Cadbury Schweppes are hereafter collectively referred to as “Cadbury” unless otherwise indicated.
• On May 7, 2008, Cadbury plc transferred its Americas Beverages business to us and we became an
independent publicly-traded company listed on the New York Stock Exchange under the symbol “DPS”. In
return for the transfer of the Americas Beverages business, we distributed our common stock to Cadbury plc
shareholders. As of the date of distribution, a total of 800 million shares of our common stock, par value
$0.01 per share, and 15 million shares of our undesignated preferred stock were authorized. On the date of
distribution, 253.7 million shares of our common stock were issued and outstanding and no shares of
preferred stock were issued.
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