Snapple 2011 Annual Report Download - page 50

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30
Beverage Concentrates
The following table details our Beverage Concentrates segment's net sales and SOP for the year ended December 31, 2011
and 2010 (in millions):
Net sales
SOP
For the Year Ended
December 31,
2011
$ 1,193
779
2010
$ 1,156
745
Change
$ 37
34
Net sales increased $37 million, or approximately 3%, for the year ended December 31, 2011, compared with the year ended
December 31, 2010. The increase was primarily due to higher net price realization, $27 million in revenue recognized under the
PepsiCo and Coca-Cola licensing arrangements and a slight increase in concentrate case sales, excluding the impact of the
repatriation of brands. The increase was partially offset by a 2% decline in concentrate case sales as a result of the repatriation of
brands to our Packaged Beverages segment.
SOP increased $34 million, or approximately 5%, for the year ended December 31, 2011, as compared with the year ago
period, primarily driven by the increase in net sales and a reduction in employee costs, partially offset by an increase in marketing
investments.
Volume (BCS) decreased 2% for the year ended December 31, 2011, as compared with the year ago period, as a result of the
repatriation of brands to our Packaged Beverages segment under the licensing arrangements with PepsiCo and Coca-Cola.
Excluding the repatriation, volume (BCS) increased slightly. Sun Drop had a double-digit increase due to the national launch of
the brand. Our Core 4 brands decreased low single digits, resulting from a high single-digit decline in Sunkist soda and mid single-
digit declines in A&W and 7UP, which was slightly offset by a high single-digit increase in Canada Dry. Other drivers of the
change included a high single-digit decline in Crush due to decreased promotional activity, as well as a mid single-digit decline
in Squirt. Dr Pepper increased low single digits due to increases in fountain food service due to additional restaurant availability,
as well as the launch of Dr Pepper TEN in the second half of 2011, offset by higher volumes a year ago caused by low holiday
and summer pricing by a national account that did not recur in 2011 and higher retail pricing in the second half of 2011.
Packaged Beverages
The following table details our Packaged Beverages segment's net sales and SOP for the year ended December 31, 2011 and
2010 (in millions):
Net sales
SOP
For the Year Ended
December 31,
2011
$ 4,292
519
2010
$ 4,098
536
Change
$ 194
(17)
Sales volume increased 2% for the year ended December 31, 2011, compared with the year ended December 31, 2010. Total
sales volume increased 2% due to the repatriation of certain brands under the PepsiCo and Coca-Cola licensing arrangements and
2% due to an increase in contract manufacturing. These increases were partially offset by a 1% decline in total sales volume in
each of our NCB category as well as our CSD category excluding the impact of repatriation.
Total CSD volume increased 3%, led by the repatriation of certain brands including Canada Dry and Squirt. The repatriation
of those brands favorably impacted the CSD volume by 5%. The national launch of Sun Drop added approximately 7 million cases
during the year ended December 31, 2011. Volume for our Core 4 brands, excluding the repatriation of Canada Dry and Sunkist
soda, decreased 3%. Dr Pepper volumes declined 4% for the year ended December 31, 2011, as sales volume in the prior year
was driven by low holiday and summer pricing by a national account that did not recur in 2011 and higher retail pricing in the
second half of 2011.