Snapple 2011 Annual Report Download - page 45

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Our Packaged Beverages' products are manufactured in multiple facilities across the U.S. and are sold or distributed to retailers
and their warehouses by our own distribution network or by third party distributors. The raw materials used to manufacture our
products include aluminum cans and ends, glass bottles, PET bottles and caps, paper products, sweeteners, juices, water and other
ingredients.
We sell our Packaged Beverages' products both through our Direct Store Delivery system ("DSD"), supported by a fleet of
approximately 6,000 trucks and 12,000 employees, including sales representatives, merchandisers, drivers and warehouse workers,
as well as through our Warehouse Direct delivery system ("WD"), both of which include the sales to all major retail channels,
including supermarkets, fountain channel, mass merchandisers, club stores, vending machines, convenience stores, gas stations,
small groceries, drug chains and dollar stores.
In 2011, Wal-Mart Stores, Inc., the largest customer of our Packaged Beverages segment, accounted for approximately 18%
of our net sales in this segment.
Latin America Beverages
Our Latin America Beverages segment is a brand ownership, manufacturing and distribution business. This segment
participates mainly in the carbonated mineral water, flavored CSD, bottled water and vegetable juice categories, with particular
strength in carbonated mineral water and grapefruit flavored CSDs. In 2011, our Latin America Beverages segment had net sales
of $418 million with our operations in Mexico representing approximately 89% of the net sales of this segment. Key brands include
Peñafiel, Squirt, Clamato and Aguafiel.
In Mexico, we manufacture and distribute our products through our bottling operations and third party bottlers and distributors.
In the Caribbean, we distribute our products through third party bottlers and distributors. In Mexico, we also participate in a joint
venture to manufacture Aguafiel brand water with Acqua Minerale San Benedetto. We provide expertise in the Mexican beverage
market and Acqua Minerale San Benedetto provides expertise in water production and new packaging technologies.
We sell our finished beverages through all major Mexican retail channels, including "mom and pop" stores, supermarkets,
hypermarkets, and on premise channels.
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,
as defined below, are also a significant measure of our performance because they measure sales, both by us and our bottlers, 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.