Snapple 2009 Annual Report Download - page 47

We sell our finished beverages through all major Mexican retail channels, including the “mom and pop” stores,
supermarkets, hypermarkets, and on premise channels.
Acquisitions
On July 11, 2007, we acquired Southeast-Atlantic Beverage Corporation (“SeaBev”). SeaBev is included in
our consolidated statements of operations beginning on its date of acquisition.
Volume
In evaluating our performance, we consider different volume measures depending on whether we sell beverage
concentrates or finished beverages.
Beverage Concentrates Sales Volume
In our Beverage Concentrates segment, we measure our sales volume in two ways: (1) “concentrates case
sales” and (2) “bottler case sales.” The unit of measurement for both concentrates case sales and bottler case sales
equals 288 fluid ounces of finished beverage, or 24 twelve ounce servings.
Concentrates case sales represent units of measurement for concentrates sold by us to our bottlers and
distributors. A concentrates case is the amount of concentrate needed to make one case of 288 fluid ounces of
finished beverage. It does not include any other component of the finished beverage other than concentrate. Our net
sales in our concentrates businesses are based on concentrates cases sold.
Although our net sales in our concentrates businesses are based on concentrates case sales, we believe that
bottler case sales are also a significant measure of our performance because they measure sales of our finished
beverages into retail channels.
Packaged Beverages Sales Volume
In our Packaged Beverages segment, we measure volume as case sales to customers. A case sale represents a
unit of measurement equal to 288 fluid ounces of packaged beverage sold by us. Case sales include both our owned-
brands and certain brands licensed to and/or distributed by us.
Volume in Bottler Case Sales
In addition to sales volume, we also measure volume in bottler case sales (“volume (BCS)”) as sales of
packaged beverages, in equivalent 288 fluid ounce cases, sold by us and our bottlers to retailers and independent
distributors.
Bottler case sales and concentrates and packaged beverage sales volumes are not equal during any given period
due to changes in bottler concentrates inventory levels, which can be affected by seasonality, bottler inventory and
manufacturing practices, and the timing of price increases and new product introductions.
Results of Operations
Executive Summary — 2009 Financial Overview and Recent Developments
• Net sales totaled $5,531 million for the year ended December 31, 2009, a decrease of $179 million, or 3%,
from the year ended December 31, 2008, largely due to the termination of our distribution agreement with
Hansen Natural Corporation (“Hansen”) and unfavorable foreign currency rates in Mexico.
• Net income for the year ended December 31, 2009, was $555 million, compared to a net loss of $312 million
for the year ended December 31, 2008, an increase of $867 million, or 278%, primarily due to the absence of
impairment of goodwill and intangible assets and favorable commodity costs in the current year.
• Diluted earnings per share was $2.17 for the year ended December 31, 2009, compared with a diluted loss
per share of $1.23 the prior year.
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