On February 27, 2008, Cott Corporation (NYSE:COT; TSX:BCB), one of the world’s largest retailer brand soft drink providers, filed a Form 12b-25 notifying the U.S. Securities and Exchange Commission that it is unable to meet the February 27, 2008 deadline to file its Annual Report for the fiscal year ended December 29, 2007. The Company anticipates filing its Form 10-K on or before March 13, 2008.
The Company is unable to file its Form 10-K by the deadline because it requires additional time to complete the preparation of its consolidated financial statements and its assessment of the Company’s internal control over financial reporting as of December 29, 2007. The delay is primarily due to the previously announced transition of its executive offices, including corporate accounting and control functions, from Toronto, Ontario to new offices in Tampa, Florida. The Company did not have an appropriate complement of accounting personnel during the year-end financial closing process.
The company expects to report material weaknesses in its internal control over financial reporting as a result of such shortage. Cott Corporation states they have taken and are continuing to take actions to remedy this issue as soon as practicable.
Cott Corp’s stock price has dropped from about $6.00 a share from the beginning of 2008 to a little less than $2.00 a share. The Wall Street Journal reported that it could lose a sizable chunk of its sales at its largest customer, Wal-Mart Stores Inc., is going to cut shelf space for sodas made by the private-label soda maker. Wal-Mart is Cott’s biggest customer, responsible for about 38% of the company’s sales. Cott also makes Sam’s Choice sodas and waters for the retail giant.
On March 5th, 2008 Cott released the press release “Cott Corporation solidifies leadership position within global MMA sports arena with exclusive agreement to supply IFL with Throwdown energy drinks, gloves and rings for 2008-2009.”
Dave Vautrin, SVP Marketing Cott Corp. stated, “At Cott, we investigated and studied market voids as we developed our hybrid Direct-to-Store distribution system — choosing leaders such as Throwdown — and IFL was a logical extension to our successful energy lineup and fills the void against competitive brands. Partnering with these industry leaders will ensure the success and robust growth of our companies.”
Cott Corporation is one of the world’s largest provider of retailer brand soft drinks. 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.
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