Snapple 2013 Annual Report Download - page 4

There’s no doubt that consumers love our avors, and our brand
strength scores reect just that. Our agship brand, Dr Pepper,
connues to score well among consumers for its likeability, uniqueness
and value, performing well in brand relevance, brand strength and
brand equity among CSD consumers in 2013. Clearly our brands are
strong individually, and it’s the strength of our enre porolio that
allows us to provide consumers with the avor variety they crave in the
packaging opons they want and with the range of calorie opons that
ts their lifestyles.
We’re pleased with last year’s launch of the 10-calorie versions of our
Core 4 avors – 7UP TEN, A&W TEN, Sunkist TEN soda and Canada Dry
TEN – which helped Core 4 volume outperform the CSD category by
3 percentage points in 2013. With 52 percent of Core 4 and RC TEN
volume incremental to the CSD category, the TEN lineup is successfully
bringing back lapsed consumers who had previously stopped drinking
so drinks or were drinking fewer servings.
Creang excitement from the rst sip, our TEN products have consumers returning for more. In 2013, repeat purchases of
these innovave products were more than three mes higher than trial rates, proving that trial drives repeat purchases.
In 2014, we will connue to drive trial and promote the TEN products as a group, as demonstrated in January by the An-
Resoluon series of videos featuring Chelsea Handler, the host of “Chelsea Lately” on the E! network.
Our eorts to connue the expansion of the Canada Dry trademark earned it recognion as the
fastest-growing CSD in the category and increased trademark volume more than 6 percent over 2012.
Canada Dry Sparkling Seltzer Waters saw posive growth in measured channels – up 13 percent –
and outpaced the unsweetened sparkling water segment. To build upon this success, we’re adding
a new avor to the brand’s lineup – Canada Dry Peach Mango Sparkling Seltzer Water – as well as
new graphics to emphasize the all-natural aspects of these unsweetened and calorie-free products.
We love our brands like a mom loves her kids, so we understand wanng the best for
them. That’s why we’re pleased that we can provide mom with Mo’s, the No. 1 branded
juice and sauce trademark, and plenty of packaging opons to accommodate her family’s
lifestyle. Building on Mo’s trademark volume growth of 3 percent in 2013, the brand
is poised to grow again in 2014 as we make three popular applesauce avors – Granny
Smith, mixed berry and mango peach – available in pouches, and add a new juice line with
40 percent less sugar than fruit juices and no arcial sweeteners.
Building our brands isn’t limited to new avors and innovaon – we’re also being more ecient
with our markeng spend by invesng in plaorms where we will see the most posive results,
thereby improving our markeng return on investment. For example, we redirected a poron of our
Snapple markeng spend toward digital media in 2013, resulng in a signicant increase in consumer
engagement on Facebook.
We connued to expand our reach into new categories in 2013 by leveraging our allied brands, earning more than
37 percent volume growth in Vita Coco and signing new distribuon agreements with Bai and Sparkling Fruit20. In 2014,
Neuro will add new avors to its Bliss, Sleep and Sonic funconal plaorms, and Vita Coco will launch Vita Coco Lemonade
to bring new consumers to the coconut water category through a more mainstream avor.
In 2014, we will connue building upon our key base brands, including Dr Pepper, 7UP, Canada Dry and Snapple, through
powerful markeng programs focused on increasing relevance with consumers and conversion with our shoppers.
#1 MOTT’S
is the No. 1
branded juice
and sauce
BUILDING OUR BRANDS
4
52 percent of volume for Core 4 and RC TEN
was incremental to the CSD category in 2013.
*The non-CSD category excludes sll water in the chart above.
CORE 4 AND RC TEN ARE
DRIVING CATEGORY GROWTH
Consumers
Switching from
Sll Water
Consumers
Switching
from Non-CSDs*
Consumers
Drinking
more CSDs
13%
33%
6%