2009 barclays capital leveraged finance consumer ......pepsi 31% strong position in north america...

Cott Corporation

2009 Barclays Capital Leveraged Finance Consumer Conference

New York, June 16, 2009

Jerry Fowden, CEOJuan Figuereo, CFO

2

Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995

and applicable Canadian securities legislation, including certain plans, expectations, strategies, and goals. You are cautioned that

all forward-looking statements involve risk and uncertainty. These statements include plans, objectives, goals, strategies, future

events or performance and all other statements which are other than statements of historical fact, including without limitation,

statements containing words such as “believes,” “anticipates,” “expects,” “estimates,” “projects,” “will,” “might” and words of a

similar nature. The forward-looking statements are based on assumptions regarding interest and foreign exchange rates,

expected growth, results of operations, performance, business prospects and opportunities and effective income tax rates.

Although Cott Corporation (“Cott”) believes that the assumptions underlying the forward-looking statements contained herein are

reasonable, any of the assumptions could be inaccurate. Accordingly, there can be no assurance that the forward-looking

statements included in this presentation will prove to be accurate. Our operations involve risks and uncertainties, many of which

are outside our control and any one or any combination of these risks and uncertainties could affect whether the forward-looking

statements ultimately prove to be correct. These risks and uncertainties include, but are not limited to, those described in Cott’s

Annual Report on Form 10-K for the year ended December 27, 2008 (the “Form 10-K”) and those described from time to time in

Cott’s future reports filed with the Securities and Exchange Commission and Canadian securities regulatory authorities. In light of

the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should

not be regarded as a representation by Cott or any other person that Cott’s objectives and plans will be achieved. If all or some of

such forward-looking statements turn out to be inaccurate, this may have a material adverse effect on Cott’s business, financial

condition, and results of operations. These forward-looking statements are based on current information that is likely to change

and speak only as of the date hereof. Cott undertakes no obligation to revise or update these forward-looking statements.

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- Cott’s Capabilities and Opportunities

- Status of “Refocus” Plan

- Sustainability of Recent Private Label Gains

- Key Business Drivers

- Q&A

Agenda

4

Leading Producer of Retailer Brand Carbonated Soft Drinks (“CSD”)

• #1 Private Label CSD producer in the U.S., UK, Canada and Mexico with $1.6 billion in total sales (2008)

• 60+% share of retail brand CSDs sold in North America / UK

• Substantial R&D capability and vertical integration with own concentrate production

• Concentrate sales to 60 countries outside manufacturing base

Strategic Importance to Retailers

• Offers customers a dedicated, full-service, vertically-integrated, low-cost production platform (20 plants)

• Delivers improved margins vs national brands to the world’s leading retailers

• High product quality & blind taste preference scores

• Proven service and supply chain with +/- 98% on-time, in-full service scores

Favorable Macro-Economic Environment for Private Label

• Current economic environment drawing consumers to private label

• Retailers increasing their focus on private label given current economic environment

Cott Enjoys a #1 Position in Private Label CSDs in Four Core Markets

Current Perspective: While we have seen recent progress due to macro-economic conditions and our refocus plan, momentum may moderate due to likely national brand

competitive activity and other challenges.

5

Cott

65%

Other Private

Label

35%

Coke

31%

Other Branded

4%

Dr. Pepper

Snapple

20%

Other PL

5%

Cott

9%

Pepsi

31%

Strong Position in North America

Cott North America

• North American business generated 70+% of total Cott revenues (2008)

• Leadership in North America supported by extensive manufacturing network and flexible production capabilities

Fort Worth

San Antonio

San Bernardino

Sikeston

St. Louis

ColumbusBlairsville

Concordville

Wilson

Tampa

Surrey, BC

Calgary, AB Mississauga, ON

Point-Claire, QC

Scoudouc, NB

North American Manufacturing Network

Leading Position in Private Label CSDs North America

___________________________1. Source: ACNielsen, Total US-Food and Mass Incl. Wal-Mart, 192oz Eq Volume for 2009 YTD ending 4/18/2009.

CSD Food & Mass US Market Share 2009 YTD (1)

Private Label CSD US Market Share 2009 YTD (1)

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Retailer Value Proposition

Strategic Importance to Retailers - Aligned with Cott’s Mission

• Partner with retailers to enhance private label programs and capabilities

– Leverage a vertically integrated, highly flexible, low cost production platform

– Deliver customized products at highly competitive prices to enhance retailer margins

– High quality product / innovation with strong blind preference scores

• Establish long term relationships on a global basis

– Continue longstanding partnerships with the world’s leading retailers in the grocery, mass and drugstore channels

– Provide category expertise to develop plans with retailers to drive consumer awareness & increase their own retail brand loyalty

“Mission: To be the lowest cost, preferred supplier of a broad range of attractive and innovative private label soft drinks to aligned retailer partners.”

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Agenda





- Q&A

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Our Strategy is to Focus on Our Core Private Label Business & the 4 C’s

Key Elements of Refocus Strategy

Rebuild Customer Relationships��

Reduce Costs��

Optimize Capex��

Improve Cash Flow��

Status

“Focus: 4 C’s; Further strengthen customer relationships, continue the push for lower

operating costs, control capital expenditures and rigorously manage working

capital, all of which should continue to improve cash flow.”

9

Customer Relationships are Improving, But There Remains Work To Be Done


Reduce Costs��



10

While our Variable Costs Remain Volatile, We are Reducing Fixed Costs


Reduce Costs��



Corp & North America SG&A Headcount

200

250

300

350

400

450

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

11

Capex Target for 2009 is Well Below Recent Trend


Reduce Costs��



Recent Capex History

56

68

35

0

10

20

30

40

50

60

70

2004-2007Average

2008 (Incl. Water)

2009 Target

$ M

illio

ns

12

Improving Cash Flow Will Be Used to Pay Down Debt


Reduce Costs��



-10

-5

0

5

10

15

20

25

30

35

40

Q2 Q3 Q4 Q1

$ M

illi

on

s

Year Ago Latest 4 Qtrs

Cash Flow from Operations vs. Year Ago

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Our Refocus Plan Includes Stabilizing Mexico & Recovering UK and RCI

UK

Actions / OpportunitiesChallenges

RCI

Mexico

• Heavy national brand promotions

• Consumer adjustment to NAFNAC

• Negative growth in premium segment

• Lagged impact of economic slow-down in developing economies

• Visibility into customer ordering patterns

• Softer consumer demand at retail

• Ramp-up of down-the-street

• Credit control issues

• Close gap with category volume performance

• Substantially reduce costs

• Shift mix - margin vs volume

• Expand portfolio of offering at existing customers – flavors

• Enter energy concentrate sales

• Improved pricing

• Continue to improve controls

• Reduce cost base

• Support retail commitment to private label

• Expand co-pack

• Management change

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- Q&A

Agenda

15

Favorable Market Conditions Strong Value Proposition

Increasingly cost-conscious consumers��

Attractive retailer value proposition

Growing commitment of retailers to private label brands

Cott Retailer Brands Have Outpaced the Category (Nielsen Grocery Channel)

$2.90

$4.88

$0.00

$2.00

$4.00

$6.00

Average Cott RB CSD Average National Brand CSD

US$ Price per 192 fluid oz

Favorable Macro-Economic Environment Helping Private Label

Average Cott RB Price Gap: 41%

(8%)(4%)

4%11% 13%

20% 17% 17% 10%6% 6%

(4%) (6%) (4%) (4%) (5%)(9%) (9%)

(5%)(10%)

(5%) (2%)(9%)

6%

(5%)

(3%)

14%5% 4%

(12%)-20%

-10%

0%

10%

20%

4 WE

4/19/08

4 WE

5/17/08

4 WE

6/14/08

4 WE

7/12/08

4 WE

8/9/08

4 WE

9/6/08

4 WE

10/4/08

4 WE

11/1/08

4 WE

11/29/08

4 WE

12/27/08

4 WE

1/24/09

4 WE

2/21/09

4 WE

3/21/09

4 WE

4/18/09

4 WE

5/16/09

Cott Retailer Brands CSD Category

___________________________Source: ACNielsen, Total US-Food Excluding Wal-Mart, 192oz Eq Volume

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Nielsen Grocery Channel - Volume Change vs. Prior Year

Within Private Label, Recent Share Shifts Have Been Driven by High Price Sensitivity

(4%)

5%

11%13%

20%

14%

(3%) 1% 0% (0%)

4%

10%

14%

15%

17%

10%

(8%)

17%

4% 4%

6% 6%

19% 19%

(6%)

17%13%

18%

-10%

0%

10%

20%

4 WE

5/17/08

4 WE

6/14/08

4 WE

7/12/08

4 WE

8/9/08

4 WE

9/6/08

4 WE

10/4/08

4 WE

11/1/08

4 WE

11/29/08

4 WE

12/27/08

4 WE

1/24/09

4 WE

2/21/09

4 WE

3/21/09

4 WE

4/18/09

4 WE

5/16/09

Cott Retailer Brands Total Retailer Brands

___________________________Source: ACNielsen, Total US-Food Excluding Wal-Mart, 192oz Eq Volume

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$0

$50

$100

$150

$200

$250

4Q2008 January February March 1Q2009

($ millions)

0%

4%

8%

12%

16%

20%

YoY Growth

Prior Current Growth vs. Prior Period

Continued Momentum in Core U.S. Market

Cott US Sales

• For YTD 2009 ending 4/18/2009, Cott retailer brands were up 12.2% (80bps of share gain) in the ACNielsen Grocery Channel over the prior year

• In the first quarter, Cott US sales improved 10.5% over the prior year, while US beverage case volume (8oz) grew 7.0%

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Agenda





- Q&A

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Long-Term Drivers for PL CSDs

Increasing Retailer Focus on Private Label

Price Gap to National Brands

Potential for Increasing PL Penetration with

New SKUs

Opportunities

International Recovery

Commodity Volatility

Sustainability of Price Gap with National Brand Promotions

Risks

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Summary

Recent Progress

• Positive macro-economic environment for private label

• Results of our Refocus plan

Momentum May Moderate

• Potential increase in national brand competitive activity

• Uncertain competitive environment

• Future commodity volatility & macro-economic inflationary pressure

We Remain Focused on Our Opportunities

• Continue our focus on superior customer relationships

• Maintaining tight management of costs

• Ongoing vigilance on Capex and cash management

• Improving our financial position

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- Q&A

Agenda

Q&A

2009 Barclays Capital Leveraged Finance Consumer

Conference

New York, June 16, 2009

2009 barclays capital leveraged finance consumer ......pepsi 31% strong position in north america...

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