The ratings on Cott Corp. reflect its below-average business profile stemming from a narrow product portfolio, customer concentration, and small size in a sector dominated by companies with substantially greater financial resources. Furthermore, the company has experienced weaker-than-expected operating performance due to challenges with the company's U.S. business, which has resulted in a decline in operating margin. 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
