Cott up on restructuring, focus on private label

Tag : Private Label Energy Drinks

NEW YORK (AP) - Shares of Cott Corp. jumped Thursday after thecompany said it plans to focus on its private-label soda businessand cut costs.
Shares jumped 21 cents, or 8.4 percent, to $2.72 in morningtrading. The stock has ranged from $1.76 to $16.12 over the pastyear.
Cott Interim Chief Executive David Gibbons said the company hasdevoted too much energy and resources toward branded initiativesand away from its core retail customers during the last 18 months.
"Our role is not to invent new categories," Gibbons said. "Our roleis to be 'fast followers' to leverage the growth of expandingcategories and to improve profitability for our retail partners atlower prices to consumers."
He said the company's retail partners will drive its new productdevelopment.
The company said the changes stem from an "intensive" 60-dayevaluation of the business that started in March when Gibbons tookover the post from Brent Willis, who resigned.
Cott also said Thursday it will combine some executive positionsand eliminate some other positions throughout the company. Both thepresident of the North American business unit and the chief peopleofficer will leave the company.
Cott estimated that total severance costs will be about $6 millionto $8 million. The company expects to save between $39 million and$43 million annually from the changes. It said it expects torealize more than $10 million of those savings in the second halfof the year.
The company also said it expanded the size of its board ofdirectors to 11 members from 10 to include four new directors.Three directors