CANADA – Cott Corporation has announced that it is evaluating certain strategic alternatives for S&D Coffee and Tea, including a sale of the segment.

Cott said that the move is part of the company’s strategic planning process aimed at transitioning into a pure-play water solutions provider.

As one of the leading players in the United States, the S&D business specializes in custom coffee roasting and is the largest blender of iced teas for food service and convenience stores in the US.

The business is also a leader in the high growth category of extracts and ingredients. 

Cott revealed that it has engaged a financial advisor as part of its strategic planning process to assist it in evaluating the future of the business as part of its portfolio.

According to a statement from the company, Cott said that it is evaluating whether there are alternatives available to its Coffee, Tea and Extract Solutions operating segment that would either complement its strategy of organic growth or otherwise enhance shareholder value.

“There can be no assurance that any particular alternative will be pursued. Cott does not propose to comment further on these matters unless disclosure thereof is warranted,” the company noted.

Expanding the water business

Cott has made an number acquisitions in the recent past in a move aimed at expanding its water business in America and Europe.

In November last year, Cott Corporation through its wholly-owned subsidiary, Eden Springs acquired a leading supplier of bottled water and point-of-use filtration services in the Netherlands, Viteau International.

To further strengthen its position in the Netherlands, Eden Springs has also bought the Watercooler Gigant business of Leylines. Watercooler Gigant is an e-commerce platform in the Netherlands and supplies bottled water coolers and filtration solutions.

DS Services of America, also a wholly owned subsidiary of Cott Corporation recently acquired “substantially all of the assets” of WG America Company and certain affiliated companies, The Water Guy.