Snapple 2009 Annual Report Download - page 8

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Core Brand Innovation
2009 product innovation focused on bringing
new users to our brands, with short-term line
extensions complemented by products with
multiple-year growth plans. The result is
several exciting innovations that are driving
consistent momentum for their trademarks.
Dr Pepper Cherry, winner of the 2009 CSP
Retailer Choice Best New Product Award,
was formulated to target the occasional user
who finds the taste of Dr Pepper too strong.
Since its launch in early 2009, Dr Pepper
Cherry has ignited growth for the Dr Pepper
trademark, up 2 percent in volume growth for
the year. It also has driven trial and repeat,
particularly in the critical coastal markets.
Cherry 7UP Antioxidant has brought
functional benefits and great lift to the
trademark, as 7UP not only outperformed
the lemon-lime category but delivered positive
full-year growth for the first time in 10 years.
Canada Dry is outpacing the category,
with Canada Dry Green Tea Ginger Ale
increasing more than 20 percent in measured
channels and contributing handsomely to
trademark volume growth of 4 percent.
We also refreshed two Core 4 consumer
favorites, relaunching a sparkling lemonade
within the Sunkist soda family and
reformulating A&W with real aged vanilla.
Several of our new products made a big
splash in Canada, where Motts Fruitsations
and Canada Dry Green Tea Ginger Ale won
Product of the Year Canada awards in three
categories
the only company with multiple
wins. 2010 innovation will put even more
new spin on core brands in Canada with the
debut of Canada Dry White Tea Ginger Ale
with Raspberry.
In the U.S., well introduce Cherry Crush and
energize the orange segment with the launch
of Sunkist Solar Fusion in 2010.
Encouraging Trends for Snapple
Without question, our revitalization of
Snapple Premium is the largest makeover
we’ve ever conducted on one of our iconic
brands. With a “Better Stuff” message,
improved taste sweetened with sugar,
updated graphics, new packaging and
a national media campaign, the brand
is recapturing its original fun and quirky
personality, and consumers are responding.
Snapple returned to growth in Q4 2009,
with premium volume and share up mid
single digits.
We also launched a Snapple premium six-
pack, a new national take-home package
for our premium line, which has added
incremental volume at a higher margin and
achieved nearly 80 percent distribution in
its first year. Value-focused consumers turned
to Snapple 12-packs of 16.9-oz. value teas,
and select markets enjoyed Snapple 79-cent
value cans, an offering we plan to expand
nationally. With a re-energized premium line,
a more comprehensive portfolio offering and
leading with brands