Snapple 2013 Annual Report Download - page 46

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LATIN AMERICA BEVERAGES
The following table details our Latin America Beverages segment's net sales and SOP for the years ended December 31, 2012
and 2011 (in millions):
For the Year Ended
December 31,
2012 2011 Change
Net sales $ 416 $ 418 $ (2)
SOP 51 43 8
Volume. Sales volume increased 2% for the year ended December 31, 2012, as compared with the year ended December 31,
2011, as volume increased in virtually all of our brands except Aguafiel. The increase in volume was led by a 5% increase in
Peñafiel as a result of package innovations, an 11% increase in Crush, a 14% increase in Clamato and a double-digit increase in
Dr Pepper due to targeted marketing programs. These increases in sales volume were partially offset by a 9% decrease in Aguafiel
as a result of lower promotional activity.
Net Sales. Net sales decreased $2 million for the year ended December 31, 2012, compared with the year ended December
31, 2011. Net sales decreased as a result of $21 million of unfavorable foreign currency translation and a $7 million reclassification
for certain transportation allowances to our customers from SG&A expenses to net sales. These decreases were partially offset by
increased sales volumes, favorable product mix and price increases.
SOP. SOP increased $8 million, or approximately 19%, for the year ended December 31, 2012 compared with the year ended
December 31, 2011, primarily due to the impact of favorable product mix, price increases, increased sales volumes and ongoing
productivity improvements. These increases were partially offset by approximately $9 million of unfavorable foreign currency
effects, higher logistics costs, increased cost for our commodities, led by sweeteners and flavors, and higher marketing investments.
LIQUIDITY AND CAPITAL RESOURCES
Trends and Uncertainties Affecting Liquidity
Customer and consumer demand for our products may be impacted by various risk factors discussed in Item 1A, "Risk Factors",
including recession or other economic downturn in the U.S., Canada, Mexico or the Caribbean, which could result in a reduction
in our sales volume. Similarly, disruptions in financial and credit markets may impact our ability to manage normal commercial
relationships with our customers, suppliers and creditors. These disruptions could have a negative impact on the ability of our
customers to timely pay their obligations to us, thus reducing our cash flow, or the ability of our vendors to timely supply materials.
We believe that the following trends and uncertainties may also impact liquidity:
• continued capital expenditures to upgrade our existing plants and fleet of distribution trucks, make investments in IT
systems and replace and expand our cold drink equipment;
• continued payment of dividends;
• seasonality of our operating cash flows could impact short-term liquidity;
• our ability to issue unsecured commercial paper notes ("Commercial Paper") on a private placement basis up to a maximum
aggregate amount outstanding at any time of $500 million;
• our continued repurchases of our outstanding common stock pursuant to our repurchase programs; and
• acquisitions of regional bottling companies, distributors and distribution rights to further extend our geographic coverage
or access to new products.
Financing Arrangements
The following descriptions represent our available financing arrangements as of December 31, 2013. As of December 31,
2013, we were in compliance with all covenant requirements for our senior unsecured notes, unsecured credit agreement and
commercial paper program.