CANADA: Cott to refocus on retailer-branded drinks
Cott Corporation, one of the world's largest retailer brand soft drinks providers, looks set to refocus its business on the retailer brands, after a period of financial under-performance.
Few details are currently available as the company said today (16 June) that it would host a conference call to discuss the initiative later this week.
In a statement, the company said it would talk about its plans to "refocus the company on retailer brands and to reduce its cost base to enhance profitability".
David Gibbons, Cott's interim chief executive officer, and Juan Figuereo, Cott's chief financial officer, will host the call.
Cott saw its shares rise sharply in April after the private equity group Crescendo Partners said it had acquired an 8.7% stake in the Canadian-based private-label specialist. The Delaware-based PEG also stated that it planned to take an active role in the company as a large shareholder.
The initiative follows a difficult time for the soft drink producer.
In April, Cott said that the operating profit of $15.5m recorded in the first quarter a year ago had turned into a $12.1m loss in the first three months of this year. The loss came on the back of a 2.6% dip in sales, to $389.7m from $400.1m. Net loss hit $20.7m, compared to a net profit of $4.8m in Q1 2007.
In March, the company parted ways with its CEO Brent Willis. David Gibbons, who has held a position on Cott's board for the past year was named interim CEO.
Earlier this year Wal-Mart stores in the US announced intentions to reduce shelf space for Cott's drinks.
Jones Soda has reported a net loss of US$5.3m for the third quarter, as the economic downturn bites the US soft drinks sector....
Cott Corporation has seen impairment charges in its third quarter hammer its net profit deeper into the red....
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