Snapple 2013 Annual Report Download - page 5

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We’re working closely with our partners and retail customers to create and execute programs that drive sales. In 2013, we
teamed up with Sam’s Club and our boling partners to oer new and exclusive Dr Pepper packages in more than 40 Sam’s
Clubs in Texas, increasing Dr Pepper trademark volume nearly 4 percent at this retailer.
The dollar channel connues to be one of the fastest-growing channels for liquid
refreshment beverages (LRB), and we’re leveraging that explosive growth for the
benet of our brands. In 2013, we increased the availability of our avor lineup
across a large dollar retailer, driving a volume increase of more than 14 percent in
the account. Likewise, in the drugstore channel, we increased volume for Canada Dry
and Schweppes 21 percent and 20 percent, respecvely, and grew Snapple volume
21 percent in measured accounts.
In 2014, we’ll build on these execuon successes by using rapid connuous improvement (RCI) to simplify processes
and eliminate waste, resulng in more me to focus on shelf opmizaon, increasing points of interrupon and closing
distribuon and availability gaps.
RCI connues to provide nancial exibility and increase our ability to compete in a tough market. Within RCI, we focus on
ve key areas – safety, quality, delivery, producvity and growth – to free up crical resources that we can redirect toward
our business priories.
To drive breakthrough change in 2013, we targeted our RCI
eorts on seven areas within our direct-store delivery (DSD)
business, parcularly related to producvity, which could be
replicated across our locaons. In one of these Lean leadership
tracks, we drove eciencies by aligning our merchandisers
with research on customer trac paerns, and in another, we
implemented centralized regional ordering for all of our DSD
point-of-sale programs to eliminate waste.
We’ve also improved producvity without sacricing service
to our customers or the safety of our employees, idenfying
more than $169 million in cash producvity over the last three
years, achieving a 99.9 percent ll rate for our warehouse
direct clients and reducing our accident frequency rate by
14 percent since 2011. In addion, our 350 Kaizen events have
contributed to a reducon in capital spend of 41 percent since
2008. Going forward into 2014, we’ll connue to use these
capabilies to create exibility across the business for the long
term, which will enable addional nancial improvements.
Since becoming a public company more than ve years ago, our board of directors has connued to set high standards for
our employees, ocers and directors. Going forward, we will miss the contribuons of one of our directors, Terry Marn,
who rered from the board eecve May 16, 2013. We thank Terry for his leadership during his ve years of service to DPS.
VOLUME
CSD
8.4%
IN DRUGSTORE
DRIVING EXECUTIONAL EXCELLENCE
CREATING SHAREHOLDER VALUE
BOARD OF DIRECTORS UPDATE
5