The ratings reflect Cott Corp.'s strengthening operating results and lower operating costs, reflecting various cost-cutting initiatives undertaken in the past year. The ratings also reflect the company's 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 structures. These factors are offset by relatively high leverage, restricted financial flexibility, and dependence on a few key accounts. Cott is the world's leading supplier of private-label carbonated soft drinks. Core operations are concentrated in the U.S., Canada, and the U.K., where combined, Cott has a 60% average market share of this US$3 billion retail value private-label business.
