Market News

Cott Looks to Energy Drinks to Boost Sales

With the fizz gone out of pop sales in North America, Cott Corp., the world\'s largest maker of store-brand soft drinks, says in 2006 it will focus on increasing its presence in non-carbonated beverages, including the fast-growing energy drink segment. Toronto-based Cott says so far this year it has already inked deals to make store-brand energy drinks for six new retail customers. In its latest quarter, Cott reported a net loss of US$2.1M, compared to a US$8.3M profit a year ago—impacted by restructuring costs and stock option expenses. The beverage maker\'s first-quarter sales slipped to US$394.2M from US$395.5M a year ago. Although Cott warned of lower profits in 2006, company president and chief exec John K. Sheppard said the results "reflect the progress of our North American realignment in stabilizing the business. The results are in line with our plan as we continue taking aggressive action to position Cott for longer term profitability." Source: Canadian Grocer E-Newsletter, April 25, 2006.