Cott Corporation is facing the threat of "significant" space re-allocation for its retailer brand soft drinks at US retail behemoth Wal-Mart.

Cott confirmed today (26 February) that it has received notice of a reduction in shelf space and merchandising support for Wal-Mart's private label carbonated soft drinks in the US, including Sam's Choice, which would be "significant to Cott's business plans", the company said.

The Canada-based soft drinks manufacturer was responding to media reports earlier this week claiming that it is set to lose shelf space at Wal-Mart.

"The 2008 programmes have not yet been finalised and Cott is still actively negotiating with Wal-Mart appropriate space allocation and other merchandising programmes associated with Sam's Choice brands," the company said.

Cott added that it was "fully committed to deploying the necessary efforts to maintain a mutually satisfactory relationship for the long-term".

Wal-Mart is Cott's biggest customer.

Earlier this month, Cott posted a leap in full-year net loss for 2007, coming in at US$73.1m from losses of $17.5m in 2006. The losses came despite flat sales last year of $1.78bn from $1.77bn the year previous.