Snapple 2009 Annual Report Download - page 52

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Beverage Concentrates
The following table details our Beverage Concentrates segment’s net sales and SOP for 2009 and 2008 (dollars
in millions):
2009 2008
Amount
Change
For the Year Ended
December 31,
Net sales ............................................ $ 1,063 $ 983 $ 80
SOP ............................................... 683 622 61
Net sales for the year ended December 31, 2009, increased $80 million compared with year ended Decem-
ber 31, 2008, due to a 6% increase in volumes as well as concentrate price increases. The expanded distribution of
Crush added an incremental $74 million to net sales for the year ended December 31, 2009. The increase in net sales
was partially offset by higher fountain food service discounts and coupon spending.
SOP increased $61 million for the year ended December 31, 2009, as compared with the year the ended
December 31, 2008, primarily driven by the increase in net sales and favorable manufacturing and distribution costs
partially offset by increased marketing investments and higher personnel costs.
Volume (BCS) increased 5% for the year ended December 31, 2009, compared with the year ended
December 31, 2008, primarily driven by the expanded distribution of Crush, which added an incremental 44 million
cases in 2009. Dr Pepper increased 2% led by the launch of the Cherry line extensions and strength in Diet Dr
Pepper. The volume of our Core 4 brands declined 1%.
Packaged Beverages
The following table details our Packaged Beverages segment’s net sales and SOP for 2009 and 2008 (dollars in
millions):
2009 2008
Amount
Change
For the Year Ended
December 31,
Net sales ............................................ $ 4,111 $ 4,305 $ (194)
SOP................................................ 573 483 90
Sales volumes increased less than 1% for the year ended December 31, 2009, compared with the year ended
December 31, 2008. The absence of sales of Hansen’s products following the termination of that distribution
agreement during the fourth quarter of 2008 negatively impacted total volumes by approximately 1%. Total CSD
volumes increased 1% led by increases in Dr Pepper whose volumes increased high single digits led by the launch of
the Cherry line extensions. Volumes for our Core 4 brands increased low single digits. Total NCB volumes increased
1% due to a shift to value products such as Hawaiian Punch, which increased low double digits, partially offset by
volume declines in the other NCB brands.
Net sales decreased $194 million for the year ended December 31, 2009, compared with the year ended
December 31, 2008. Hansen’s termination reduced net sales for the year ended December 31, 2009, by $200 million.
Additionally, net sales were favorably impacted by volume and price/mix increases, primarily in CSDs, offset by
unfavorable impact of product mix.
SOP increased $90 million for the year ended December 31, 2009, compared with the year ended December 31,
2008. The increase was driven primarily due to lower commodity costs, including packaging materials and
sweeteners, and lower transportation and warehouse costs driven by supply chain network optimization efforts in
addition to a decrease in fuel costs and carrier rates. These increases in SOP were partially offset by increased
advertising and marketing costs and costs associated with information technology (“IT”) infrastructure upgrades.
The Hansen’s termination reduced SOP by approximately $40 million.
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