On Jan. 28, 2005, Standard&Poor's Ratings Services revised its outlook on the leading supplier of retailer-branded soft drinks, Cott Corp., to stable from positive. At the same time, Standard&Poor's affirmed the ratings on the company. The outlook revision follows Cott's recent announcement of its fourth-quarter 2004 financial performance, which was weaker than expected due to challenges with the company's U.S. business. Although fourth-quarter sales increased 7%, reported operating income dropped 29% during this time because of a lower gross margin. Cott's gross margin declined to 15.4% in the fourth quarter ended Jan. 1, 2005, from 19.8% in the same period a year earlier because of higher plant costs resulting from lower U.S. manufacturing efficiencies and higher
