The ratings on Mississauga, Ont.-based Cott Corp. reflect its weak credit protection measures from a prolonged period of poor operating performance, reduced liquidity, and vulnerable business risk profile stemming from a narrow product portfolio, customer concentration, and small size in a sector dominated by companies with substantially greater financial resources and market presence. These factors are partially offset by Cott's market position as the leading private label manufacturer and marketer of take-home carbonated soft drinks (CSDs) in the U.S., the U.K., and Canada. Cott competes in the mature and highly competitive CSD market with its solid private label share. Despite this defensive operating strategy, the company is vulnerable to pricing and promotional actions by its primary competitors. Cott announced last
