By the Numbers
$2.3+ BILLION ANNUAL SALES
3600 direct-to-consumer routes
2.4+ MILLION CUSTOMERS
900+ Million Gallons of Water Delivered Annually
Cott is a leading North American and European water, coffee and coffee extracts, tea and filtration solutions service company with the largest volume-based national presence in the North American and European home and office bottled water delivery industry and a leader in custom coffee roasting and blending of iced tea for the U.S. foodservice industry. Our platform reaches over 2.4 million customers or delivery points with over 3,600 direct-to-consumer routes across North America and Europe supported by strategically located sales and distribution facilities and fleets, as well as wholesalers and distributors. This enables us to efficiently service residences, businesses, restaurant chains, hotels and motels, small and large retailers, and healthcare facilities.
Over the last five years, we have completely transformed our business into a pure play water, coffee, tea and filtration service company with a significantly improved business profile with products and services in higher margin, growing categories, meaningfully lower customer concentration, consolidation opportunities at highly synergistic values as well as strong compound free cash flow generation.
In 2014, we acquired DS Services, the market leader in the growing U.S. home and office water delivery segment, as well as a top five position in U.S. office coffee services and a smaller but faster growing water filtration business.
After integrating the DS Services business, and in order to continue to execute our strategy, we acquired Aquaterra in January of 2016 (the leading home and office water delivery business in Canada) creating the largest North American home and office water delivery platform.
In June of 2016, we announced our move into European home and office water delivery with the acquisition of Eden Springs, Europe’s largest home and office water delivery business as well as a top five position in filtration and office coffee services, and in August of 2016, we announced the acquisition of S&D Coffee & Tea, a leading U.S. based manufacturer, distributor and service provider of custom coffee roasting, tea blending and liquid extract production.
In July of 2017, we announced that we had entered into a definitive agreement to sell our traditional beverage manufacturing business (“Cott Beverages”) to Refresco (Euronext: RFRG) for USD $1.25 billion. The transaction included the Cott North America, U.K., and Mexico businesses (excluding the RCI International division and its associated concentrate facility as well as the Aimia Foods division). The transaction closed on January 30, 2018.
With our significantly improved business profile, operations in growing categories, lower customer concentration, and reduced leverage and exposure to mature categories, we believe that these actions will allow us to generate low single digit topline growth, margin expansion and strong free cash flow generation with adjusted 2019 free cash flow estimated at $150 million. This is driven by growth of our water and coffee solutions businesses, the capture of additional synergies across our water and coffee solutions platform, and incremental growth from small overlapping tuck-in acquisitions within our water and coffee solutions businesses.
Organic Growth from “Better-for-You” product offerings (positioned in growing categories of water, coffee, tea, filtration and extracts)
Focused innovation within product development, route logistics and technology creating further growth, cross sell and customer service opportunities
Margin Expansion driven by scaled platforms with increased customer and route density
Focus on sustainability to drive efficiencies, inspire innovation, and build a platform for long-term growth and assured supply
Consolidation / customer list opportunities at highly synergistic values
Strong compound free cash flow generation