TORONTO--(January 27, 2009) - Cott Corporation (
Cott Corporation announced that, in connection with ongoing conversations with Wal-Mart Stores Inc. about future business development and the nature of the business relationship, it has been advised by Wal-Mart of their decision to terminate, without cause, the existing, ten-year-old, exclusive supply agreement with Cott. This does not terminate Cott's relationship as a supplier to Wal-Mart. While conversations with Wal-Mart are ongoing, and the impact on Cott's business is unclear at this time, the effect of this action is to phase out the exclusive nature of the relationship with Cott as the supplier of retailer brand carbonated soft drinks in the United States. The termination is effective on the third anniversary of notification in late January 2012.
Cott continues to supply Wal-Mart's requirements. This action allows Wal-Mart the opportunity, if they so choose, to move as much as one third of their requirements in the first year following notification and two thirds of their requirements in the second year. Wal-Mart and Cott continue to discuss a redefinition of their ongoing business relationship.
Cott Corporation will host a conference call today, Tuesday, January 27th, at 9:30 AM EST.
For those who wish to listen to the presentation, there is a listen-only, dial-in telephone line, which can be accessed as follows:
North America: (800) 595-8550
International: (416) 644-3417
The conference call will be recorded and archived for playback on the web at http://www.cott.com.
About Cott Corporation
Cott Corporation is one of the world's largest non-alcoholic beverage companies and the world's largest retailer brand soft drink company. The Company commercializes its business in over 60 countries worldwide, with its principal markets being the United States, Canada, the United Kingdom and Mexico. Cott markets or supplies over 200 retailer and licensed brands, and Company-owned brands including Cott, RC, Vintage, Vess and So Clear. Its products include carbonated soft drinks, sparkling and flavored waters, energy drinks, sports drinks, juices, juice drinks and smoothies, ready-to-drink teas, and other non-carbonated beverages. The Company's website is www.cott.com. The brand names and trademarks referenced in this press release are trademarks of Cott Corporation, its affiliated companies, customers, or other third parties.
Safe Harbor Statements
This press release contains forward-looking statements conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve inherent risks and uncertainties and the Company cautions you that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statement. Until discussions between Wal-Mart and Cott are further advanced, Cott is unable to ascertain the impact on the volume of carbonated soft drinks it supplies to Wal-Mart and on the overall business.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various disclosures, including but not limited to risk factors, contained in the Company's Annual Report on Form 10-K for the year ended December 29, 2007 and its quarterly reports on Form 10-Q, as well as other periodic reports filed with the securities commissions. The Company does not undertake to publicly update or revise any of these statements in light of new information or future events.