Cott Corporation, together with its subsidiaries, produces beverages on behalf of retailers, brand owners, and distributors. Segments The company operates its business through three segments—North America (which includes its U.S. segment and Canada segment), United Kingdom (U.K.) (which includes its United Kingdom unit and its Continental European unit), and All Other (which includes its Mexico segment, Royal Crown International (RCI) segment and other). Products The company has a diversified product portfolio across major beverage categories. Its product lines include carbonated soft drinks (CSDs), 100% shelf stable juice and juice-based products, clear, still and sparkling flavored waters, energy drinks, sports products, new age beverages and ready-to-drink teas, as well as alcoholic beverages for brand owners. In 2013, the U.K. segment acquired 100 percent of the share capital of Cooke Bros. Holdings Limited, which includes the subsidiary companies Calypso Soft Drinks Limited and Mr. Freeze (Europe) Limited (together, Calypso Soft Drinks). Calypso Soft Drinks produces fruit juices, juice drinks, soft drinks, and freeze products in the United Kingdom. Trademarks The company sells the majority of its beverages under retailer brands to customers who own the trademarks associated with those products. It also owns registrations, or applications to register, various trademarks that are important to its worldwide business, including Cott and Red Rain in the United States, Canada, and the United Kingdom; Stars & Stripes, Vess, Vintage, So Clear, Shanstar, Harvest Classic, Chadwick Bay, Exact and Golden Crown in the United States; Emerge, Red Rooster, MacB, Carters, Calypso, Mr. Freeze, Jubbly, and Ben Shaws in the United Kingdom; Stars & Stripes in Mexico; and RC mark in various formats in approximately 120 countries and territories outside of North America. The company is licensed to use certain trademarks such as Old Jamaica Ginger Beer and Ting in the United Kingdom. Seasonality The company’s beverage sales are higher during the warmer months and also can be influenced by the timing of holidays and weather fluctuations. The company’s purchases of raw materials and related accounts payable fluctuate based upon the demand for its products, as well as the timing of the fruit growing seasons. The seasonality of its sales volume combined with the seasonal nature of fruit growing causes its working capital needs to fluctuate throughout the year, with inventory levels increasing in the first half of the year in order to meet high summer demand, and with fruit inventories peaking during the last quarter of the year when purchases are made after the growing season. Research and Development The company engages in various research and development activities. These activities principally involve the development of new products, improvement in the quality of existing products, improvement and modernization of production processes, and the development and implementation of new technologies to enhance the quality and value of both and proposed product lines. Its research and development costs were $3.1 million in 2013. Regulation The production, distribution and sale in the United States of many of its products are subject to the Federal Food, Drug, and Cosmetic Act, the Federal Trade Commission Act, the Lanham Act, state consumer protection laws, federal, state and local workplace health and safety laws, various federal, state and local environmental protection laws and various other federal, state and local statutes and regulations applicable to the production, transportation, sale, safety, advertising, labeling and ingredients of such products. All of its beverage production facilities and other operations are subject to various environmental protection statutes and regulations, including those of the U.S. Environmental Protection Agency, which pertain to the use of water resources and the discharge of waste water. Strategy The company’s primary goal is to maintain long-term profitability and enhance its position as the market leader and preferred supplier of beverages on behalf of retailers, brand owners, and distributors in the markets where the company operate. Customers The company’s customers include national and regional grocery, mass-merchandise, drugstore, wholesale and convenience store chains, as well as customers for whom the company manufactures beverages on a contract basis. Its major customer includes Walmart. Competition The company also faces competition in the juice category from juice brands such as Welch’s, Ocean Spray and Mott’s. History Cott Corporation was founded in 1955. The company was incorporated in 1955 and is governed by the Canada Business Corporations Act.
cott corporation (BCB:Toronto)
6525 Viscount Road
Mississauga, ON L4V 1H6
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