The ratings on Cott Corp. reflect its below-average business profile stemming from a narrow product portfolio, customer concentration, acquisitive nature, and small size in a sector dominated by companies with substantially greater financial resources. These factors are partially offset by Cott's solid credit protection measures and good market position as a private label manufacturer and marketer of take-home carbonated soft drinks (CSD). Cott competes in the mature and highly competitive soft drink category alongside bigger players by seeking a strong private label share. Despite this defensive operating strategy, the company is vulnerable to pricing and market share actions by competitors. Cott, based in Toronto, Ont., is the world's leading supplier of retailer-branded beverages and the fourth-largest manufacturer of CSDs. Core
