Snapple 2011 Annual Report Download - page 51

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Total NCB volume decreased 1% compared to the year ended December 31, 2010. Declines in Mott's of 9% and Hawaiian
Punch of 4% drove the decrease in the NCB category. Mott's decline was a result of larger-than-normal price increases associated
with the significant increase in the cost of apple juice concentrate and promotional activities in the prior year that did not recur in
2011. Hawaiian Punch's decline was due to price increases partially offset by favorability due to new package innovation. These
decreases were partially offset by an 8% increase in Snapple as a result of distribution gains and package innovation.
Net sales increased $194 million for the year ended December 31, 2011, compared with the year ended December 31, 2010.
Net sales were favorably impacted by price increases, $83 million due to the repatriation of certain brands and favorable package
mix and increases in contract manufacturing, partially offset by volume declines previously discussed.
SOP decreased $17 million for the year ended December 31, 2011, compared with the year ended December 31, 2010, primarily
due to higher costs for packaging materials, sweeteners, apple juice concentrate, fuel and other commodities, incremental costs
associated with the repatriation of brands, and an $18 million legal provision associated with the litigation against The American
Bottling Company. These cost increases were partially offset by the increase in net sales, ongoing RCI-related and other productivity
savings, lower warehouse costs and a reduction in our IT investments in the current year. Additionally, the favorable comparison
of $19 million of higher expenses associated with labor, co-packing, unfavorable yield, and an underabsorption of manufacturing
overhead as a result of the strike at our Williamson, New York manufacturing facility in the prior year further offset the costs
increases in the current year.
Latin America Beverages
The following table details our Latin America 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
$ 418
43
2010
$ 382
40
Change
$ 36
3
Sales volume increased 4% for the year ended December 31, 2011, as compared with the year ended December 31, 2010. The
increase in volume was driven by a 7% increase in Squirt volume due to higher sales to third party bottlers, a 5% increase in
Peñafiel and a 26% increase in Clamato due to targeted marketing programs and distribution gains. These volume increases were
partially offset by a 18% decrease in Crush volume driven by price increases.
Net sales increased 9% for the year ended December 31, 2011, compared with year ended December 31, 2010, primarily due
to favorable product mix, increases in sales volume and price increases. The favorable impact of $7 million in foreign currency
changes was partially offset by the $6 million reclassification of certain transportation allowances to our customers from selling,
general and administrative expenses to net sales.
SOP increased 8% for the year ended December 31, 2011, compared with year ended December 31, 2010, primarily due to
the increase in net sales partially offset by higher costs for packaging materials, sweeteners, and other commodities. This increase
was further reduced by the unfavorable impact of changes in foreign currency on our expenses, increased logistic costs, higher
depreciation expense and higher compensation costs.