Company confirms long-term business model TORONTO, Feb. 21 /PRNewswire-FirstCall/ -- Executives of Cott Corporation (NYSE:COT; TSX:BCB), the world's largest retailer brand soft drink provider, presented earlier today to the Consumer Analyst Group of New York annual conference in Scottsdale, Arizona. CEO Brent Willis and International President Wynn Willard provided conference attendees with an update on the Company's international growth strategy and confirmed Cott's long-term business model. Mr. Willard presented financial highlights of Cott's International Business Unit, including an overview of compound annual growth rates achieved in various international markets, with limited investment by the Company. "Cott has enjoyed strong and consistent success on an international basis and we have a solid platform for further international expansion," commented Willard. "Our forward strategy is based on owning the value space and becoming the global leader in value beverages. Our existing relationships with some of the world's top retailers give us opportunities to grow and expand with the global retailer consolidation currently underway." The Company laid out its five-part strategy for international growth going forward: 1. Fully develop U.K. and Mexico markets through penetration of under and undeveloped channels and expanded geographic distribution 2. Develop customer relationships with all of the top 10 European and global retailers 3. Transform Royal Crown International into a new market development arm with a broader portfolio of beverages and expanded licensing and exporting 4. Continue to explore BRIC markets (Brazil, Russia, India and China) on a city-by-city basis with RC brand and new brand development in emerging markets 5. Make acquisitions to accelerate growth and derive synergies "We plan to support this international growth strategy by offering a total beverage portfolio that includes innovative products in fast-growing segments like energy, functional beverages and juices," added Willis. "We are investing in the consumer and category insights necessary to support our customers in profitably growing their beverage programs." Mr. Willis also confirmed Cott's business model for growth and its anticipated long-term financial targets of: - 2-4% annual organic volume growth - 2-5% annual organic revenue growth - Gross margin improvement of 50-100 basis points year-on-year, exceeding 16% in 2009 - 12-15% annual operating income growth - Annual capital expenditures of $50-70 million "While we are expanding for growth, we continue to focus on our core business, especially in North America, by significantly reducing costs, driving top-line growth by becoming the retailer's best partner and building our innovation pipeline," said Willis. "We are executing a number of initiatives in each of these areas and we have done what we said we would do by eliminating more than $35 million in annualized costs from the business. We continue to expect that our 2007 operating income will be on the upper end of our long-term business model range and we intend to manage free cash very closely. Required capital expenditures for sustainability will be approximately $20-30 million this year and any additional capital spending will be allocated to growth and efficiency initiatives that we expect will have high returns." 2007 CAGNY Presentation ----------------------- A copy of the presentation made by Mr. Willis and Mr. Willard to the Consumer Analyst Group of New York will be available on the Cott Corporation web site beginning Thursday, February 22. 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 provider. The Company commercializes its business in over 60 countries worldwide, with its principal markets being the United States, Canada, the United Kingdom and Mexico. Cott markets or supplies over 200 retailer and licensed brands, and Company-owned brands including Cott, RC, Vintage, Vess and So Clear. Its products include carbonated soft drinks, sparkling and flavored waters, energy drinks, sports drinks, juices, juice drinks and smoothies, ready-to-drink teas, and other non-carbonated beverages. The Company's website is http://www.cott.com/. The brand names referenced in this press release are trademarks of Cott Corporation, its affiliated companies, our customers, or other third parties. Safe Harbor Statements ---------------------- This press release contains forward-looking statements reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company. The forward-looking statements are based on the assumption that volume and revenue will be consistent with historical trends, that margins will improve through a balance of revenue realization and cost containment, and that interest rates will remain constant and debt levels will decline. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance such as those relating to the success of the Company's measures to increase volume and revenue, reduce costs and increase operating income, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate securities commissions, and include, without limitation, stability of procurement costs for raw and packaging materials, the Company's ability to restore plant efficiencies and reduce logistics and other costs, adverse weather conditions, competitive activities by other brand beverage manufacturers, the Company's ability to develop new products that appeal to consumer tastes, the Company's ability to identify acquisition candidates, successfully consummate acquisitions and integrate acquired businesses into its operations, fluctuations in currency versus the U.S. dollar, the uncertainties of litigation and regulatory review, loss of key customers and retailers' continued commitment to their Company-supplied beverage programs. The foregoing list of factors is not exhaustive. The Company undertakes no obligation to publicly update or revise any forward-looking statements. DATASOURCE: Cott Corporation CONTACT: COTT CONTACTS: Media Relations, Kerry Morgan, Tel: (416) 203-5613; Investor Relations, Edmund O'Keeffe, Tel: (416) 203-5617

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