UPDATE 3-Cott posts loss on weak demand, higher costs

(Adds comments from conference call, analysts, stock movement. In U.S. dollars unless noted)

By Susan Taylor

OTTAWA, Oct 25 (Reuters) - Cott Corp (BCB.TO: Quote, Profile, Research, Stock Buzz) (COT.N: Quote, Profile, Research, Stock Buzz) posted a surprise third-quarter loss on Thursday as sagging North American demand, higher costs and bigger restructuring charges hurt the world's largest retail-brand soft drink maker's results.

The financials fell well short of analyst expectations despite a recent warning of weaker results on a 7 percent drop in North American demand and rising commodity prices.

Investors will now watch carefully to see if Cott can succeed with its recovery plan, analysts said.

Cott repeated on Thursday its confidence in posting operating margins of 16 percent in 2009 and long-term operating income growth between 12 and 15 percent.

But with two seasonally-weak quarters ahead, it is unlikely Cott will have evidence from its efforts for another six months, said BMO analyst David Hartley.

"The indication is it doesn't get worse, but the problem is there's just no catalyst to see when it materially and sustainably becomes better," he said in an interview.

Cott, which counts Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) as a customer, reported a net loss of $5.8 million, or 8 cents a share, in the quarter ending Sept. 29. That compares with net income of $6.6 million, or 9 cents a share, in the year-earlier period.