The ratings on Mississauga, Ont.-based Cott Corp. reflect what Standard&Poor's Ratings Services considers the company's vulnerable business risk profile stemming from customer concentration, its small size in a sector dominated by companies with substantially greater financial resources and market presence, and integration risks related to its Cliffstar Corp. (not rated) acquisition last summer. In addition, a significant reduction in business with Cott's key customer, Wal-Mart Stores Inc. (AA/Stable/A-1+), could result in a material weakening of credit protection measures. We believe these factors are partially offset by Cott's improved operating performance; broader product offering and good market position in shelf stable juices with the addition of Cliffstar; and solid market position as the leading private label manufacturer and marketer
