CANADA: Cott nears deal with Chinese bottler
Cott Corp. has made another move to gain access to the Chinese soft drinks market.
The Canada-based company has signed a letter of intent on a deal with China's Jianlibao Group, a soft drinks bottler based in the country's Guangdong province.
Cott, the world's largest supplier to retailers of own-label soft drinks, has now signed four similar agreements with bottlers in China. It hopes the deals will enable it to tap into the booming economy.
"Obviously, there is significant growth potential in that market," a Cott spokesperson in Toronto told just-drinks last night (11 January). "These agreements are all still being worked on but the meetings we've had have gone very well and everyone seems very excited."
Cott hopes to finalise the agreements during the first quarter of the year. The spokesperson was unable to be more specific on the timeframe.
However, she said Cott is looking to widen its presence globally and is building a larger management team that will focus on international markets.
She said: "International expansion will be a key strategy for us over the next couple of years in both the carbonated soft drink (CSD) and non-CSD segments. The long-term growth for Cott will come from outside North America."
In October, Cott said it would close two facilities in the US with the loss of 350 jobs. The announcement came as a tough North American market hit third-quarter volumes, which fell by over 6%.
The fall came despite a 30% leap in volume sales internationally, driven by the UK and Mexico.
The drinks industry has not been immune from the growing influence of private equity groups (PEGS) in the corporate world. Critics argue that PEGs hark back to the worst excesses of 1980s corporate gr...
The Coca-Cola Co. has confirmed its interest in either buying Cadbury Schweppes' iced tea line Snapple or building its own tea brand, according to reports....
Cott Corporation plans to merge two of its units in an effort to cut costs and "strengthen its relationship with retailers."...
The Indian company Tata Tea has declined to comment on a report in the Indian newspaper Economic Times that Tata Group is interested in joining a bid for Cadbury Schweppes' US beverage business to sec...
Coca-Cola Co. has declined to comment on speculation that it may be interested in acquiring Cadbury Schweppes's Snapple iced tea....
Cadbury Schweppes has revealed plans to close 15% of its manufacturing sites by 2011 in an effort to reduce costs and also confirmed suspicions that it will now sell off its US drinks business....
Cadbury Schweppes's US beverage unit has plans to develop an enhanced water product, according to reports....
Cadbury Schweppes is staying quiet on reports that there are at least two bidders for its US beverages arm....
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Diageo puts Beckham centre stage in Haig Club ad
- TWE unveils Penfolds range after CEO's "bold move"