Snapple 2009 Annual Report Download - page 38

ourselves against claims. We cannot be certain that the steps we take to protect our rights will be sufficient or that
others will not infringe or misappropriate our rights. If we are unable to protect our intellectual property rights, our
brands, products and business could be harmed.
We also license various trademarks from third parties and license our trademarks to third parties. In some
countries, other companies own a particular trademark which we own in the United States, Canada or Mexico. For
example, the Dr Pepper trademark and formula is owned by Coca-Cola in certain other countries. Adverse events
affecting those third parties or their products could affect our use of the trademark and negatively impact our brands.
In some cases, we license products from third parties which we distribute. The licensor may be able to
terminate the license arrangement upon an agreed period of notice, in some cases without payment to us of any
termination fee. The termination of any material license arrangement could adversely affect our business and
financial performance.
We could lose key personnel or may be unable to recruit qualified personnel.
Our performance significantly depends upon the continued contributions of our executive officers and key
employees, both individually and as a group, and our ability to retain and motivate them. Our officers and key
personnel have many years of experience with us and in our industry and it may be difficult to replace them. If we
lose key personnel or are unable to recruit qualified personnel, our operations and ability to manage our business
may be adversely affected. We do not have “key person” life insurance for any of our executive officers or key
employees.
We depend on key information systems and third party service providers.
We depend on key information systems to accurately and efficiently transact our business, provide information
to management and prepare financial reports. We rely on third party providers for a number of key information
systems and business processing services, including hosting our primary data center and processing various
accounting, order entry and other transactional services. These systems and services are vulnerable to interruptions
or other failures resulting from, among other things, natural disasters, terrorist attacks, software, equipment or
telecommunications failures, processing errors, computer viruses, hackers, other security issues or supplier
defaults. Security, backup and disaster recovery measures may not be adequate or implemented properly to avoid
such disruptions or failures. Any disruption or failure of these systems or services could cause substantial errors,
processing inefficiencies, security breaches, inability to use the systems or process transactions, loss of customers or
other business disruptions, all of which could negatively affect our business and financial performance.
Weather and climate changes could adversely affect our business.
Unseasonable or unusual weather or long-term climate changes may negatively impact the price or availability
of raw materials, energy and fuel, and demand for our products. Unusually cool weather during the summer months
may result in reduced demand for our products and have a negative effect on our business and financial
performance.
There is growing political and scientific sentiment that increased concentrations of carbon dioxide and other
greenhouse gases in the atmosphere are influencing global weather patterns (“global warming”). Changing weather
patterns, along with the increased frequency or duration of extreme weather conditions, could negatively impact the
availability or increase the cost of key raw materials that we use to produce our products. Additionally, the sale of
our products can be negatively impacted by weather conditions.
Concern over climate change, including global warming, has led to legislative and regulatory initiatives
directed at limiting greenhouse gas (GHG) emissions. For example, proposals that would impose mandatory
requirements on GHG emissions continue to be considered by policy makers in the countries that we operate. Laws
enacted that directly or indirectly affect our production, distribution, packaging, cost of raw materials, fuel,
ingredients, and water could all negatively impact our business and financial results.
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