The ratings on Cott Corp. reflect its leading global share of the retailer (private-label) brand of the carbonated soft drink market, a customer base consisting of first-rate food and mass merchant retailers, an integrated business structure, and improving cash flow and cost structure. These factors are offset by relatively high leverage, restricted financial flexibility, and dependence on a few key accounts. Cott recently announced the purchase of its private-label concentrate supply agreement as well as the acquisition of international brands from Royal Crown (RC) Cola (formerly a division of Cadbury Schweppes) for US$94 million. The supply contract purchase includes soft drink formulas, proprietary technology, and a concentrate manufacturing facility in Columbus, Ga.; the purchase of RC International relates to all
