Cott Reports Third Quarter 2009 Results

TORONTO and TAMPA, FL, Oct 29 (MARKET WIRE) --
Cott Corporation (NYSE: COT) (TSX: BCB)

-- Operating income increased to $26.9 million, as compared to an
operating loss of $90.5 million. The results for the third quarter of
2008 included $95.7 million of restructuring charges and asset
impairments.

-- Net income increased to $13.9 million, or $0.18 per share, as compared
to a net loss of $87.6 million, or $1.25 per share.

(All information in U.S. dollars; all third quarter 2009 comparisons
are relative to the third quarter of 2008)

Cott Corporation (NYSE: COT) (TSX: BCB) today announced its results
for the third quarter ended September 26, 2009. Third quarter 2009
revenue was $404.9 million, as compared to $420.5 million, a decrease of
3.7%. Excluding the impact of foreign exchange, revenue increased 1.1%.
Operating income increased to $26.9 million, as compared to an operating
loss of $90.5 million. Net income was $13.9 million, or $0.18 per share,
as compared to a net loss of $87.6 million, or $1.25 per share. Please
refer to the accompanying reconciliation of revenue excluding the impact
of foreign exchange to GAAP revenue for non-GAAP measures used in this
press release.

"Cott's performance in the third quarter highlights the benefit of our
continued focus on costs, operating efficiencies, margins and cash
generation, while, at the same time, continuing to provide superior
quality and service to our retail customers and their consumers. This is
our third consecutive quarter of year-over-year profit growth," commented
Cott's Chief Executive Officer, Jerry Fowden. "As the largest private
label soft drink producer, we have a strong platform on which to
capitalize on the consumer shift toward value and to be the preferred
provider for all of our retailer partners," added Fowden.

"During the quarter, strong revenue growth in our U.K. operation was
offset by the impact of foreign exchange and a more competitive
environment in North America. Despite increased promotional activity by
the national brands, our gross margin approached the upper end of our
expectation. Our continued emphasis on improving customer relationships,
reducing operating costs, and optimizing capital expenditures has
resulted in increased cash generation, a stronger balance sheet and
significantly improved liquidity," commented Cott's Chief Financial
Officer, Neal Cravens.

"Having achieved three consecutive quarters of improved performance and a
stronger balance sheet we can now turn more of our attention to new
business development. We've had some recent successes with new and
existing customers. We expect to see the volume impact of these successes
starting in 2010," continued Fowden.

THIRD QUARTER 2009 PERFORMANCE
SUMMARY

-- Revenue declined 3.7% (excluding the impact of foreign exchange,
revenue increased 1.1%).

-- Gross margin increased 450 basis points to 15.8% of sales, as compared
to 11.3%. Higher average selling prices per beverage case compared to last
year and substantially lower operating costs contributed to the higher
gross margin percentage in the third quarter.

-- Selling, general and administrative ("SG&A") expenses declined to 9.2%
of sales from 10.1%. SG&A expenses included $2.8 million of severance costs
incurred in the third quarter of 2009.

-- Operating income was $26.9 million, as compared to an operating loss
of $90.5 million. The results for the third quarter of 2008 included $95.7
million of restructuring charges and asset impairments.

-- Cott's income tax expense was $0.9 million, as compared to an income
tax benefit of $12.2 million.

THIRD QUARTER 2009 SEGMENT HIGHLIGHTS

-- North America beverage case volume declined 4.1% to 140.8 million
cases. Revenue decreased 3.3%, or 2.4% excluding the impact of foreign
exchange. North America operating profit increased to $16.1 million from an
operating loss of $27.6 million on continued operating cost reductions and
SG&A savings, including the ongoing benefits of the Company's plan to
refocus on private label.

-- U.K. beverage case volume increased 9.0% to 48.3 million cases,
reversing a trend of year-over-year declines in the first half of 2009.
Revenue was essentially flat during the quarter but increased 15.3%
excluding the impact of foreign exchange. The significant growth in revenue
in the U.K. in local currency was attributable to a combination of volume
growth, improved product mix and pricing.

-- Mexico beverage case volume declined 18.3% to 5.8 million cases as a
result of ongoing difficult economic conditions in that market and the
implementation of specific initiatives to tighten our credit policy and
stabilize the business. While challenging conditions remain in the Mexican
market, signs of improvement are emerging, including progress on reducing
costs, improving financial controls, and winning new business that should
benefit 2010 volumes.

-- Royal Crown International concentrate volumes increased 1.1% to 54.7
million cases, primarily due to the timing of customer order patterns.
Revenue increased 9.4% to $5.8 million, primarily due to improved product
mix and pricing.

Third Quarter Results Conference Call

Cott Corporation will host a conference call today, October 29, 2009, at
9:00 AM EDT, to discuss third quarter results, which can be accessed
as
follows:

North America: (877) 407-8214
International: (201) 689-8031

A live audio webcast will be available through the Company's website
at http://www.cott.com. The earnings conference call will be recorded and
archived for playback on the investor relations section of the website for
a period of two weeks following the event.

About Cott Corporation

Cott Corporation is one of the world's largest non-alcoholic beverage
companies and the world's largest retailer brand soft drink company. With
approximately 2,800 employees, the Company operates bottling facilities in
the United States, Canada, the United Kingdom and Mexico. Cott markets
non-alcoholic beverage concentrates in over 50 countries around the world.

Non-GAAP Measures

Cott supplements its reporting of revenue determined in accordance with
GAAP by excluding the impact of foreign exchange to separate the impact of
currency exchange rate changes from the Company's results of operations.
Since the Company uses these adjusted financial results in the management
of its business, management believes this supplemental information is
useful to investors for their independent evaluation and understanding of
the performance of the Company's management and its core business
performance. The non-GAAP financial measures described above are in
addition to, and not meant to be considered superior to, or a substitute
for, the Company's financial statements prepared in accordance with GAAP.
In addition, the non-GAAP financial measures included in this earnings
announcement reflect management's judgment of particular items, and may be
different from, and therefore may not be comparable to, similarly titled
measures reported by other companies.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 conveying management's expectations as to
the future based on plans, estimates and projections at the time the
Company makes the statements. Forward-looking statements involve inherent
risks and uncertainties and the Company cautions you that a number of
important factors could cause actual results to differ materially from
those contained in any such forward-looking statement. The forward-looking
statements contained in this press release include statements related to
future financial operating results and related matters. The
forward-looking statements are based on assumptions that volume and
revenue will be consistent with historical trends, that interest rates
will remain constant and debt levels will decline, and, in certain cases,
on management's current plans and estimates. Management believes these
assumptions to be reasonable but there is no assurance that they will
prove to be accurate.

Factors that could cause actual results to differ materially from those
described in this press release include, among others: the Company's
ability to compete successfully, currency fluctuations that adversely
affect the exchange between the U.S. dollar and the pound sterling, the
Euro, the Canadian dollar, the Mexican peso and other currencies;
fluctuations in commodity prices and the Company's ability to pass on
increased costs to its customers, and the impact of those increased prices
on the Company's volumes; changes in consumer tastes and preferences for
existing products and the Company's ability to develop and timely launch
new products that appeal to such changing consumer tastes and preferences;
a loss of or reduction in business with key customers, particularly
Wal-Mart, and the commitment of the Company's customers to their own
Cott-supplied beverage programs; the Company's substantial debt levels and
the Company's ability to service and reduce its debt; the Company's
ability to maintain compliance with the covenants and conditions under
its debt agreements; fluctuations in interest rates; credit rating
changes; further deterioration of the capital markets; the Company's
ability to maintain favorable arrangements and relationships with its
suppliers; the Company's exposure to intangible asset risk; the Company's
ability to manage its operations successfully; the Company's ability to
fully realize the expected cost savings and/or operating efficiencies
from its restructuring activities; any disruption to production at the
Company's beverage concentrates or other manufacturing facilities; the
Company's ability to protect its intellectual property; the impact of
regulation and regulatory, investigative and legal actions; unseasonably
cold or wet weather, which could reduce the demand for the Company's
beverages; the impact of national, regional and global events, including
those of a political, economic, business and competitive nature; the
Company's ability to recruit, retain, and integrate new management and a
new management structure; the volatility of the Company's stock price;
disruptions in the Company's information systems; and interruption in
transportation systems, labor strikes, work stoppages and other
interruptions or difficulties in the employment of labor or
transportation in the Company's markets.

The foregoing list of factors is not exhaustive. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date hereof. Readers are urged to carefully review and
consider the various disclosures, including but not limited to risk
factors contained in the Company's Annual Report on Form 10-K for the
year ended December 27, 2008 and its quarterly reports on Form 10-Q, as
well as other periodic reports filed with the securities commissions. The
Company does not undertake to update or revise any of these statements in
light of new information or future events.

Website: www.cott.com

COTT CORPORATION EXHIBIT 1
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions of U.S. dollars except per share amounts, U.S. GAAP)
Unaudited

For the Three Months Ended For the Nine Months Ended
---------------------------- ---------------------------
September 26, September 27, September 26, September 27,
2009 2008 2009 2008
------------- ------------ ------------ ------------

Revenue, net $ 404.9 $ 420.5 $ 1,210.7 $ 1,276.7
Cost of sales 341.1 372.8 1,015.4 1,131.2
------------- ------------ ------------ ------------

Gross profit 63.8 47.7 195.3 145.5

Selling, general
and
administrative
expenses 36.9 42.4 106.7 139.7
Loss on
disposal of
property,
plant &
equipment - 0.1 - 0.4
Restructuring,
goodwill and
asset
impairments
Restructuring - (0.1) 1.6 6.6
Goodwill
impairments - 69.2 - 69.2
Asset
impairments - 26.6 3.5 27.0
Operating
income (loss) 26.9 (90.5) 83.5 (97.4)

Other expense
(income), net 3.2 0.4 0.5 (5.8)
Interest
expense, net 7.6 8.6 22.7 24.3
------------- ------------ ------------ ------------

Income (loss)
before income
taxes 16.1 (99.5) 60.3 (115.9)

Income tax
(benefit)
expense 0.9 (12.2) (10.7) (6.5)
------------- ------------ ------------ ------------

Net income
(loss) $ 15.2 $ (87.3) $ 71.0 $ (109.4)

Less: Net income
attributable to
non-controlling
interests 1.3 0.3 3.5 1.3
------------- ------------ ------------ ------------

Net income (loss)
attributed to
Cott
Corporation $ 13.9 $ (87.6) $ 67.5 $ (110.7)
============= ============ ============ ============

Net income
(loss) per
common share
attributed to
Cott
Corporation
Basic $ 0.18 $ (1.25) $ 0.93 $ (1.56)
Diluted $ 0.18 $ (1.25) $ 0.92 $ (1.56)

Weighted
average
outstanding
shares
attributed to
Cott
Corporation
Basic 76.6 70.3 72.5 71.1
Diluted 77.0 70.3 73.1 71.1

COTT CORPORATION EXHIBIT 2
CONSOLIDATED BALANCE SHEETS
(in millions of U.S. dollars except share amounts, U.S. GAAP)
Unaudited

September 26, December 27,
2009 2008
------------- -------------
ASSETS
Current assets
Cash & cash equivalents $ 19.0 $ 14.7

Accounts receivable, net of allowance of
$6.7 ($5.5 as of December 27, 2008) 169.4 164.4
Income taxes recoverable 9.2 7.7
Inventories 112.5 111.1
Prepaid and other expenses 11.1 9.3
Deferred income taxes 12.7 3.0
Other current assets 2.1 -
------------- -------------

Total current assets 336.0 310.2

Property, plant and equipment 338.3 346.8
Goodwill 29.7 27.0
Intangibles and other assets 152.2 169.6
Deferred income taxes 22.0 10.3
Other tax receivable - 9.2
------------- -------------

Total assets $ 878.2 $ 873.1
============= =============

LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings $ - $ 107.5
Current maturities of long-term debt 7.2 7.6
Income taxes payable 2.1 0.1
Accounts payable and accrued liabilities 171.1 166.7
------------- -------------

Total current liabilities 180.4 281.9

Long-term debt 269.0 294.4
Other long-term liabilities 13.7 16.0
Other tax liabilities 12.3 18.3
Deferred income taxes 21.0 16.0
------------- -------------

Total liabilities 496.4 626.6
Contingencies and Commitments

Equity
Capital stock, no par - 81,306,330
(December 27, 2008 - 71,871,330) shares
issued 322.4 275.0
Treasury stock (5.3) (6.4)
Additional paid-in-capital 38.1 38.1
Retained earnings (deficit) 37.8 (29.7)
Accumulated other comprehensive loss (27.0) (47.8)
------------- -------------
Total Cott Corporation equity 366.0 229.2
Non-controlling interests 15.8 17.3
------------- -------------

Total equity 381.8 246.5
------------- -------------

Total liabilities and equity $ 878.2 $ 873.1
============= =============

COTT CORPORATION EXHIBIT 3
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars, U.S. GAAP)
Unaudited

For the Three Months For the Nine Months
Ended Ended
-------------------- --------------------
September September September September
26, 27, 26, 27,
2009 2008 2009 2008
--------- --------- --------- ---------

Operating Activities
Net income (loss) $ 15.2 $ (87.3) $ 71.0 $ (109.4)
Depreciation and
amortization 16.4 20.1 49.7 60.9
Amortization of financing
fees 0.4 0.2 1.0 0.8
Share-based compensation
expense 0.4 0.3 1.2 5.4
Increase (decrease) in
deferred income taxes - (4.7) 2.9 (3.2)
Decrease in other income tax
liabilities (0.1) (10.1) (16.6) (11.1)
Loss on disposal of
property, plant & equipment - 0.1 - 0.4
Gain on buyback on notes 0.2 - 0.2 -
Asset impairments - (0.8) 3.5 (0.4)
Intangible asset impairments - 27.4 - 27.4
Goodwill impairments - 69.2 - 69.2
Lease contract termination
loss - - - 0.3
Lease contract termination
payments (0.9) (2.7) (2.8) (3.1)
Other non-cash items 2.9 4.2 1.8 4.8
Change in accounts
receivable 37.2 30.4 1.9 5.0
Change in inventories 7.7 3.3 2.2 (1.3)
Change in prepaid expenses
and other current assets 1.5 3.8 (1.5) (2.8)
Change in other assets 0.5 (5.6) 0.3 (6.0)
Change in accounts payable
and accrued liabilities (24.4) (30.7) (0.2) (3.9)
Change in income taxes
recoverable (0.2) 1.0 0.6 8.7
--------- --------- --------- ---------
Net cash provided by
operating activities 56.8 18.1 115.2 41.7
--------- --------- --------- ---------

Investing Activities
Additions to property, plant
and equipment (5.3) (22.5) (18.9) (46.7)
Additions to intangibles - (0.1) - (3.4)
Proceeds from disposal of
property, plant & equipment
and held-for-sale assets 0.1 (0.1) 1.4 2.5
--------- --------- --------- ---------
Net cash used in investing
activities (5.2) (22.7) (17.5) (47.6)
--------- --------- --------- ---------

Financing Activities
Payments of long-term debt (22.7) (3.0) (26.4) (4.5)
Issuance of long-term debt - 17.0 - 33.6
Borrowings on credit
facility, net - - - (127.5)
Short-term borrowings, net - 0.2 - (8.2)
Short-term borrowings, ABL 48.9 436.5 679.4 1,031.9
Short-term repayments, ABL (115.5) (446.2) (788.1) (910.4)
Distributions to
non-controlling interests (2.6) (1.1) (4.9) (2.7)
Issuance of common shares 47.4 - 47.4 -
Purchase of treasury shares - - - (6.4)
Deferred financing fees (1.1) (0.7) (1.1) (5.0)
Other financing activities (0.2) (0.5) (0.4) (0.4)
--------- --------- --------- ---------
Net cash (used in) provided
by financing activities (45.8) 2.2 (94.1) 0.4
--------- --------- --------- ---------

Effect of exchange rate changes
on cash - (0.9) 0.7 (1.3)
--------- --------- --------- ---------

Net increase (decrease) in cash
& cash equivalents 5.8 (3.3) 4.3 (6.8)

Cash & cash equivalents,
beginning of period 13.2 23.9 14.7 27.4
--------- --------- --------- ---------

Cash & cash equivalents, end of
period $ 19.0 $ 20.6 $ 19.0 $ 20.6
========= ========= ========= =========

COTT CORPORATION EXHIBIT 4
SEGMENT INFORMATION
(in millions of U.S. dollars, U.S. GAAP)
Unaudited

For the Three Months Ended For the Nine Months Ended
---------------------------- ----------------------------
September 26, September 27, September 26, September 27,
2009 2008 2009 2008
------------- ------------- ------------- -------------

Revenue
North America $ 287.2 $ 296.9 $ 899.7 $ 899.6
United Kingdom 101.6 101.9 264.6 309.9
Mexico 10.3 16.0 30.7 50.1
RCI 5.8 5.3 15.7 16.3
All Other - 0.4 - 0.8
------------- ------------- ------------- -------------
$ 404.9 $ 420.5 $ 1,210.7 $ 1,276.7
============= ============= ============= =============

Operating income (loss)
North America $ 16.1 $ (27.6) $ 69.0 $ (43.1)
United Kingdom 10.8 (62.7) 16.5 (53.8)
Mexico (1.6) (1.0) (5.1) (4.6)
RCI 1.6 1.2 3.2 5.9
All Other - (0.4) (0.1) (1.8)
------------- ------------- ------------- -------------
$ 26.9 $ (90.5) $ 83.5 $ (97.4)
============= ============= ============= =============

Volume - 8 oz equivalent cases - Total Beverage
(including concentrate)
North America 158.9 166.3 495.4 507.0
United Kingdom 51.8 50.2 144.1 148.4
Mexico 5.8 7.1 17.0 23.0
RCI 54.7 54.1 161.1 173.3
All Other - 0.4 - 0.6
------------- ------------- ------------- -------------
271.2 278.1 817.6 852.3
============= ============= ============= =============

Volume - 8 oz equivalent cases - Filled Beverage
North America 140.8 146.8 439.8 441.0
United Kingdom 48.3 44.3 131.1 132.2
Mexico 5.8 7.1 17.0 23.0
RCI 0.1 - 0.2 -
All Other - 0.3 - 0.6
------------- ------------- ------------- -------------
195.0 198.5 588.1 596.8
============= ============= ============= =============

COTT CORPORATION EXHIBIT 5
Analysis of Revenue by Geographic Region
(in millions of U.S. dollars, U.S. GAAP)
Unaudited

For the Three Months Ended
----------------------------------------------------
September 26, 2009
----------------------------------------------------
(In millions of U.S. North United All
dollars) Cott(1) America Kingdom Mexico RCI Other
------- ------- ------- ------- ------- -------
Change in revenue $ (15.6) $ (9.7) $ (0.3) $ (5.7) $ 0.5 $ (0.4)
Impact of foreign
exchange 20.0 2.6 13.8 3.6 - -
------- ------- ------- ------- ------- -------
Change excluding
foreign exchange $ 4.4 $ (7.1) $ 13.5 $ (2.1) $ 0.5 $ (0.4)
======= ======= ======= ======= ======= =======
Percentage change in
revenue -3.7% -3.3% -0.3% -35.6% 9.4% -100.0%
------- ------- ------- ------- ------- -------
Percentage change in
revenue excluding
foreign exchange 1.1% -2.4% 15.3% -16.9% 9.4% -100.0%
------- ------- ------- ------- ------- -------

For the Nine Months Ended
----------------------------------------------------
September 26, 2009
----------------------------------------------------
(In millions of U.S. North United All
dollars) Cott(1) America Kingdom Mexico RCI Other
------- ------- ------- ------- ------- -------
Change in revenue $ (66.0) $ 0.1 $ (45.3) $ (19.4) $ (0.6) $ (0.8)
Impact of foreign
exchange 95.2 19.7 64.2 11.4 - (0.1)
------- ------- ------- ------- ------- -------
Change excluding
foreign exchange $ 29.2 $ 19.8 $ 18.9 $ (8.0) $ (0.6) $ (0.9)
======= ======= ======= ======= ======= =======
Percentage change in
revenue -5.2% 0.0% -14.6% -38.7% -3.7% -100.0%
------- ------- ------- ------- ------- -------
Percentage change in
revenue excluding
foreign exchange 2.5% 2.3% 7.7% -20.7% -3.7% -100.0%
------- ------- ------- ------- ------- -------

(1) Cott includes the following operating segments: North America, United
Kingdom, Mexico, RCI and All Other.

CONTACT:
Kimball Chapman
Investor Relations
Tel: (813) 313-1840
Email Contact

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