For the quarter, sales volume increased 1 percent. Branded sales volume grew 1 percent while contract manufacturing declined 7 percent. For the year, sales volume was flat. Branded sales volume grew 1 percent while contract manufacturing declined 23 percent, as the company continued to de-emphasize this business.
Net sales for the quarter increased 14 percent reflecting flat volume, lapping 8 percent volume growth in the prior year, concentrate pricing taken earlier in the year and favorable discount timing. Revenue recognized under the PepsiCo and Coca-Cola licensing agreements added 6 percentage points to net sales growth. SOP increased 9 percent reflecting net sales growth partially offset by increased marketplace investments.
Net sales for the quarter were up 1 percent. Low-single digit volume growth in CSDs, mid-single digit growth in Snapple and double digit growth in Hawaiian Punch were partially offset by a mid-single digit decline in Mott's, a high-single digit decline in contract manufacturing and the continued impact of negative product mix. SOP decreased 6 percent as net sales growth and ongoing supply chain productivity benefits were more than offset by higher packaging, ingredient and transportation costs and a $9 million increase in LIFO-related inventory provisions.
On Feb. 26, 2010, the company completed its licensing agreements with PepsiCo. Under these agreements, PepsiCo began distributing Dr Pepper, Crush and Schweppes in the U.S. territories where these brands were previously distributed by The Pepsi Bottling Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS). The same applies to Dr Pepper, Crush, Schweppes, Vernors and Sussex in Canada, and Squirt and Canada Dry in Mexico. These agreements have an initial term of 20 years, with 20-year renewal periods, and require PepsiCo to meet certain performance conditions.
Additionally, effective April 19, 2010, in certain U.S. territories where it has a manufacturing and distribution footprint, the company began selling certain owned and licensed brands, including Sunkist soda, Squirt, Vernors and Hawaiian Punch, that were previously distributed by PBG and PAS.
The one-time cash payment of $900 million, received Feb. 26, 2010, was recorded as deferred revenue and is being recognized as net sales over 25 years. The company recognized $9 million of revenue in the fourth quarter and $30 million for the year.
Impact of the Coca-Cola Co. licensing agreements
On Oct. 4, 2010, the company completed its licensing agreements with Coca-Cola. Under the new agreements, KO began distributing Dr Pepper in the U.S. and Canada Dry in the Northeast U.S. where they were previously distributed by Coca-Cola Enterprises (CCE). These agreements have an initial term of 20 years, with 20-year renewal periods, and require Coca-Cola to meet certain performance conditions. KO will distribute Canada Dry, C'Plus and Schweppes in Canada, will offer Dr Pepper and Diet Dr Pepper in local fountain accounts previously serviced by CCE and will include Dr Pepper and Diet Dr Pepper on its Freestyle fountain dispenser.
Additionally, effective Jan. 7, 2011, in certain U.S. territories where it has a manufacturing and distribution footprint, the company began selling Squirt, Canada Dry, Schweppes and Cactus Cooler, which were previously sold by CCE.
The one-time cash payment of $715 million was received on Oct. 4, 2010, was recorded as deferred revenue and is being recognized as net sales over 25 years. The company recognized $7 million of revenue in the fourth quarter and year.