Snapple 2011 Annual Report Download - page 5

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3
Leading with Flavor
When it comes to fl avor, DPS is the clear front runner.
We’re No. 1 in fl avored CSDs, and with more than 50
brands in our portfolio, we provide consumers with
choices that meet their needs. In addition to variety,
consumers want lower calorie options, improved nutrition
and convenient package sizes, and we’re delivering on
all of these fronts. On the packaging side, we launched
Hawaiian Punch 10-oz. six-packs, multiserve Snapple
premium teas, CSD 20-oz. grip bottles and CSD 18-
pack cans in 2011. On page 7, you’ll read how DPS is
also providing lower calorie options and healthy choices
with products such as Dr Pepper TEN, Snapple Lightly
Sweetened Teas and Mott’s Medleys Sauce.
Competing Differently
At DPS, our size is one of our strengths. It makes us
faster, more agile, able to leverage learnings and repeat
successes more quickly. These strengths are a decided
advantage when it comes to seizing opportunities at the
local level, where our sales teams are partnering with
our retail customers to develop strategies to increase
consumption in low per-capita markets and build long-
term equity for our brands. As you’ll read on page 8, this
approach has helped grow volume in targeted markets
for Canada Dry and brands such as 7UP, Peñafi el
and Clamato, which are favorites among Hispanic
consumers. In addition, our allied brand partnerships
allow us to participate in emerging beverage categories,
and our third-party bottler agreements, which help fi ll
distribution voids, get our products into the hands of
more consumers.
Delivering Shareholder Value
On the strength of our brands and execution, we expect
our cash fl ow to remain healthy, and we will continue
to return excess free cash to shareholders in the form
of dividends and share repurchases. A key enabler
behind our strong cash fl ow is our focus on RCI, which
is increasing cash fl ow through capital avoidance and
the reduction of working capital. On page 10, you’ll
learn more about our long-term commitment to providing
total shareholder returns in the top quartile of consumer
staple companies.
Compound annual growth rate includes changes in
stock price since May 7, 2008, the day DPS became
a publicly traded company on the New York Stock
Exchange, and reinvestment of dividends. The Peer
Group Index consists of the following companies: The
Coca-Cola Co., PepsiCo, Inc., Monster Beverage Corp.
(formerly Hansen Natural Corp.), The Cott Corp., Jones
Soda Co. and National Beverage Corp.
WE GREW
DR PEPPER
DOLLAR SHARE
FOR THE FOURTH
CONSECUTIVE
YEAR, UP 0.2
POINTS IN 2011.
ANNUALIZED
TOTAL
SHAREHOLDER
RETURNS
SINCE
SPIN–OFF
S&P 500
PEER GROUP
INDEX
DPS
-3%
6%
(THROUGH DEC. 31, 2011) 15%