Snapple 2011 Annual Report Download - page 4

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Our ability to execute against these priorities is
exemplifi ed by the wins we achieved in 2011.
• We grew Dr Pepper dollar share for the fourth
consecutive year, up 0.2 points in 2011.
• Snapple, the leader in premium teas, continued its
momentum, with volume up more than 7 percent on
top of double-digit gains in 2010.
• We took Sun Drop nationwide in early 2011,
delivering 9 million incremental cases and achieving
93 percent ACV in grocery. Sun Drop now holds the
No. 2 branded spot in the citrus category.
• We launched Dr Pepper TEN, a low-calorie version
of our fl agship brand, after we achieved a 6 percent
volume lift for the entire Dr Pepper product line during
three months in test markets. Based on the positive
consumer response to Dr Pepper TEN, we’re testing
additional TEN offerings in 2012 for 7UP, Canada Dry,
Sunkist soda, A&W and RC Cola.
• Canada increased market share for its priority brands,
with dollar share up 1.1 points.
• We made gains on brands repatriated from
The Coca-Cola Co. and PepsiCo, Inc., exceeding
our internal volume targets.
• Building on our strategy to win in single serve and
immediate consumption, we added 43,000 fountain
valves and 25,000 cold-drink placements, focusing on
quality placements and profi table assortment mix. In total,
our fountain foodservice volume grew 5 percent in 2011.
• Latin America Beverages grew volume 4 percent,
driven by increases for Squirt, Peñafi el and Clamato.
• More than 1,200 employees participated in 90-plus
RCI projects across the company in 2011, improving
productivity and freeing up resources to redirect
toward growing distribution and availability and
increasing per-capita consumption of our brands.
Growing our Business
In 2011, we implemented strategies to improve both price
and mix across our CSD and non-carbonated portfolios to
help defray the signifi cant increases in commodity costs.
These actions, the performance of certain repatriated brands
and the revenues associated with The Coca-Cola Co. and
PepsiCo, Inc. transactions helped offset a slight decline
in overall volume, resulting in the 5 percent increase in net
sales. Segment operating profi t was up 2 percent, refl ecting
net sales growth, partially offset by higher packaging and
ingredient costs and a one-time legal provision. Excluding
certain items, we earned $2.79 per diluted share, an increase
of 16 percent as compared with 2010.
Our opportunities to grow distribution and availability and
increase per-capita consumption in North America are well
within our reach. Many markets remain untapped, and we
believe that over the long term DPS has an 800 million case
opportunity to increase consumption for brands such as
Dr Pepper, our Core 4 (7UP, Canada Dry, Sunkist soda
and A&W), Crush, Snapple and Mott’s.
2