Cott stock tumbles as Wal-Mart shrink...

Cott stock tumbles as Wal-Mart shrinks store-brand soda-pop she...

There are 20 comments on the The Canadian Press story from Feb 26, 2008, titled Cott stock tumbles as Wal-Mart shrinks store-brand soda-pop she.... In it, The Canadian Press reports that:

- Cott Corp. (TSX:BCB), which became the world's biggest maker of store-brand soft drinks largely by supplying Wal-Mart Stores Inc. (NYSE:WMT), has been told that the world's biggest retailer is cutting its soda-pop shelf space.The Toronto-headquartered beverage maker - already losing money - said Tuesday the change "would be significant to Cott's business plans."Its severely ravaged share price tumbled 25 per cent to a new low of C$3 in early trading on the TSX, down from a 52-week high of $19.70.This followed a 20 per cent drop Monday from $4.99 to $4 on no publicly disseminated news from the company.Cott confirmed it has received notice of a reduction in shelf space and merchandising support for Wal-Mart's private-label carbonated soft drinks in the United States."However, the 2008 programs have not yet been finalized and Cott is still actively negotiating with Wal-Mart appropriate space allocation and other merchandising programs associated with Sam's Choice brands," Cott said.Wal-Mart is Cott's biggest customer and Cott "is fully committed to deploying the necessary efforts to maintain a mutually satisfactory relationship for the long term," the company added.At the same time, Cott "will work hard to continue to diversify its customer base and to offset the potential impact on its profitability."Cott lost US$76.8 million in the fourth quarter of 2007 as sales rose 3.1 per cent from a year earlier to $412.4 million thanks to increases in its overseas operations, boosted by foreign exchange effects. Revenue in North America was down 2.5 per cent from a year earlier.Meanwhile, Bentonville, Ark.-based Wal-Mart earned a record US$4.1 billion in its fourth quarter ended Jan. 31, up four per cent from a year earlier as sales increased 8.3 per cent to $106.3 billion.Tuesday's release from Cott said conversations with Wal-Mart "are ongoing and the final outcome of the 2008 merchandising, shelf allocation and other support programs for Sam's Choice carbonated soft drinks at Wal-Mart has yet to be determined."It also said Wal-Mart has not indicated any shelf space reduction for bottled water, which Cott sees as a growth area.Cott's fourth-quarter results showed a 4.8 per cent year-over-year volume decline in North America, blamed on "continued softness in the carbonated soft drink segment."At the same time, Cott said it was hurt by "an extreme commodity environment" that boosted costs of ingredients and packaging, as well as by intense promotional activity by big-name competitors, along with "various internal challenges."

Join the discussion below, or Read more at The Canadian Press.

blazerKY

United States

#1 Feb 26, 2008
Just like walmart, they are forcing us to buy more expensive items by replacing the store brand,and recent changes in many selections of the grocery area are forcing customers to choose an alternative, usually higher. We drive walmart's sales and they continue to push us.When will it stop? Soon there will have our grocery use at home on a system like POS, we use it up at home, it goes into wal mart home office, generates a report at the store you shop and only allows you to replenish a particular item for one of their choice. What in the world are we thinking? There is alternatives to wal mart, and I'm choosing the alternative.
mr man

Dawsonville, GA

#2 Aug 4, 2008
i worked at cott for some time and we took every procaution to ensure we make the best water and we reduce waste. and produce the most water we can every day.and even at the best price for our customers.thankyou for your support
FoonTheElder

Omaha, NE

#3 Aug 4, 2008
What is happening is that Pepsi & Coke are paying more to Wal Mart for the shelf space. This is known as slotting.

So, even though Pepsi & Coke costs twice as much as the store brand, Wal-Mart makes more money. They make it not just from selling the products but from payoffs to expand their shelf space. I've also noticed that since this happened there aren't as many sales on Pepsi & Coke products as there used to be.

Since: Aug 08

Canada

#4 Aug 4, 2008
This is a big blow to a heretofore very solid company.

- John Briner, Vancouver
Briner Group

Since: Jun 08

United States

#5 Aug 5, 2008
I love Sam's Choice soft drinks. They are a cost-saving alternative to the name brands. While the shelf space has been greatly cut back, I can still find them and when I do, I buy all I can to stock up. Maybe they will get the message that they still need to offer low-cost choices for their customers. Why would they be called Sam's Choice if you can't choose them?
FoonTheElder

Omaha, NE

#6 Aug 5, 2008
bizzyb wrote:
I love Sam's Choice soft drinks. They are a cost-saving alternative to the name brands. While the shelf space has been greatly cut back, I can still find them and when I do, I buy all I can to stock up. Maybe they will get the message that they still need to offer low-cost choices for their customers. Why would they be called Sam's Choice if you can't choose them?
Well, what is stranger is that the brand didn't become Sam's Choice until after Sam died. So is it REALLY Sam's Choice?
almostdone

United States

#7 Aug 19, 2008
Cott is now having to remove soda vending machines!
Cott Broke SEC laws

Barrie, Canada

#8 Feb 24, 2009
Wal Mart finally caught Cott favoring other retailers. Wal Mart had a guarantee that they would have the BEST price. When they learned that Safeway was getting better prices all those years.....they tore up the contract with Cott. Now the same thieves who concocted those deals....will take Cott private on there own and toooooooooooooooo bad for all the shareholders.

The Board of Directors is responsible......or so they should be

Since: Oct 08

Dallas, TX

#9 Aug 12, 2009
Cott Broke SEC laws wrote:
Wal Mart finally caught Cott favoring other retailers. Wal Mart had a guarantee that they would have the BEST price. When they learned that Safeway was getting better prices all those years.....they tore up the contract with Cott. Now the same thieves who concocted those deals....will take Cott private on there own and toooooooooooooooo bad for all the shareholders.
The Board of Directors is responsible......or so they should be
This is the first I've heard of this. If it is true, I don't blame Wal-Mart for cutting back the shelf space. I just have to look a little harder to find Dr. Thunder, Root Beer, Orangette and Twist-Up.
Concerned shareholder

Huntington Station, NY

#10 Oct 6, 2009
Cott Broke SEC laws wrote:
Wal Mart finally caught Cott favoring other retailers. Wal Mart had a guarantee that they would have the BEST price. When they learned that Safeway was getting better prices all those years.....they tore up the contract with Cott. Now the same thieves who concocted those deals....will take Cott private on there own and toooooooooooooooo bad for all the shareholders.
The Board of Directors is responsible......or so they should be
Is this true- how do you know this
just candid

AOL

#11 Oct 7, 2009
Who needs the teath rotting stuff.

“wanna argue?”

Since: Jul 09

Location hidden

#12 Oct 7, 2009
bizzyb wrote:
I love Sam's Choice soft drinks. They are a cost-saving alternative to the name brands. While the shelf space has been greatly cut back, I can still find them and when I do, I buy all I can to stock up. Maybe they will get the message that they still need to offer low-cost choices for their customers. Why would they be called Sam's Choice if you can't choose them?
Notice the name" Sam's Choice", that's not consumer's choice, customer choice, or your choice. Perhaps people will realise when Wal-Mart closes all competitors down, we will have one choice aka no choice.

Since: Oct 08

Duncanville, TX

#13 Oct 13, 2009
RoosterOne wrote:
<quoted text>Notice the name" Sam's Choice", that's not consumer's choice, customer choice, or your choice. Perhaps people will realise when Wal-Mart closes all competitors down, we will have one choice aka no choice.
Yes, it is MY CHOICE when it comes to saving money. I buy store brands whenever possible. Most of the time they are as good as the name brands. And, I choose to shop at Walmart because I do save money there. I still have many choices available to me to shop at, but I will go where I save the most money. You don't have to shop there.

“Your Gods' Rules not mine.”

Since: Apr 07

Indianapolis

#14 Oct 15, 2009
Tap water: cheaper than all that crap.

Since: Oct 08

Duncanville, TX

#16 Oct 15, 2009
is he evil wrote:
0735 Chris, you Think everyone hates you? look into the mirror & what do you see? Do you see a loving, kind, passionate, RESPECTFUL person that any mother would love? When I was growing up in society I was taught to be respectful, kind & generous in society. Misery loves misery & gets you NO WHERE!! I taught my children & also teach my grandsons & grand daughters to always be polite & never let anyone that is nasty get under their skin... just walk away from it. I have taught my children & grandchildren that no matter what happens in life you always have NUMBER "1" to count on & that is yourself. One is where they are in society because that is where they put themselves. If you go out with a scoul on your face... witha "I DON"T CARE attitude...how do you expect good decent people to perceive you as?
Wrong topic for this post.
go under

United States

#18 Dec 11, 2009
I dont feel sorry for cott.This is what walmart does and its very calculated on walmarts part.they get a company in at a good price,then when most of that companies business depends on walmart they cut them off.This in turn forces the company to lower its prices by cutting wages or moving their plants to mexico.This all happens because in many cases companies have to invest lots of money in machinery and warehouse space to get a walmart account.Then walmart drops the hammer.
happy suzzie

AOL

#19 Dec 11, 2009
Wal-Mart is for losers. I shop at Macys & have Peapod deliver my soft drinks.

Since: Oct 08

Duncanville, TX

#20 Dec 11, 2009
happy suzzie wrote:
Wal-Mart is for losers. I shop at Macys & have Peapod deliver my soft drinks.
Well, good for you! You pay three prices at Macy's and as for Peapod, it is in only a few cities. None around me. I will continue to save money at Walmart!
fat albert

AOL

#22 Dec 13, 2009
All of them use corn sweetners in their soft drinks, which is the cheap way to go. It also makes everyone fat.
Stef

United States

#25 Aug 13, 2010
lndychick wrote:
Tap water: cheaper than all that crap.
You are not much into taste aren't you! Back in wildwest times the saloon would of sent you to the horse trough.

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