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  • #31
    Originally posted by drp24/7 View Post
    In looking accross the brand portfolio of CSAB there is something to be said for the strength of some of the brands, where others are less than stelliar. What makes the most sense, that Pepsi should pick up all the brands currently owned by CSAB, implement some of them into its corporate set: A&W, Canada Dry, Country Time, Dr. Pepper, Hawaiian Punch, Nantucket Nectars, Sunkist, Yoo-hoo, and Snapple. I'll explain. Most of these would be to either replace existing poor performing Pepsi products, or to further expand their reach in that particular sector of the beverage market. A&W replaces Mug, Canada Dry so they could have a ginger ale, County Time, Hawaiian Punch, Sunkist would help to replace the Tropicana (a better juice play) sodas, Dr. Pepper is an obvious, Yoo-Hoo gives them a better dairy presence, Nantucket Nectars expands the juice again, and Snapple opens all kinds of opportunites in juice, tea, and energy drinks. As far as the remaining brands, Pepsi could do a fire sale of sorts, maybe Neslte Waters would have an interest in Deja Blue, Coke already bottles Schweppes so maybe they'd want to pick that up, as far as the mixers as such maybe a spirits or beer company would pick them up, and the remaining who knows. I just think that this is a logical way to appoarch it if Pepsi should want to look into acquiring CSAB.

    Pepsi is looking to buy whole companies in a category they are weak, not replace exsisting inhouse products completely... it's just not cost effective for them to replace a dozen of their soda brands buying something that would cost way too much just to get the better name brand... they would get more results pushing those products instead of making them filler's for the shelf space they got from their core flavors which is all they are...

    In some areas coke sells canada dry and the local C-S bottler does schweppes so its not just a big hey lets shuffle things around and do whats right for everyone, with hundreds of distributors and contracts on various products lasted dozens of years its not something likely to happen unless an investor group looks to butcher the company down for profits.... They probably want to grow and enhance the position so the long-term equity of the products is worth more and they can get a better return by selling it off that way instead of breaking everything apart for a smaller buck.

    7up was created as a result of anti-trust issues in the beverage world, so I doubt the government would even allow a large buy off of various products to those other companies, lots are already distributed by them... hawaiian punch is distributed by pepsi here, drpepper by coke/pepsi in various areas, same thing for just about every other product....

    I guess the only thing I could add is I don't see a private investment group buying up other bottlers who distribute C-S products like the current ownership was doing to create a stronger presence that can get products out quicker to market and more efficiently overall, but who knows maybe they'll learn the value of whats been going on already behind the scenes and want to continue that effort to make more of a return decades from now when they'll probably want to cash out. (plus look at the soda market these days, sagging sales and trends don't put much hope for it so companies aren't going to want to buy up the top brand cause its just not going to be worth what they paid years from now.)

    Wow really I could rant and rave all day, maybe I should have put together all my thoughts instead of spreading them out and double backing on some, have it lol.

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    • #32
      WSJ is reporting that Cott is interested.

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      • #33
        A CS/Cott merger would provide some stronger competition for Coke and Pepsi.

        Cott surges on Cadbury Schweppes rumors - Apr. 13, 2007

        I think such a deal would be good for customers.

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        • #34
          Originally posted by CitrusCola View Post
          A CS/Cott merger would provide some stronger competition for Coke and Pepsi.

          Cott surges on Cadbury Schweppes rumors - Apr. 13, 2007

          I think such a deal would be good for customers.
          Doesn't Cott make generics for major chains? how would this affect that business? Afterall, would it not be a conflict of interest if you are making sodas for the same people you now compete against?
          Whether you think can or think you can\'t, you\'re probably right!

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          • #35
            greg,

            I doubt if this would be considered a conflict of interest. The name brand soft drinks would be considered "premium" whereas the generics would be considered "bargain." Cott already competes against its generics in my local Wal-Mart. I've bought "premium" sodas with the Cott name on them that were alongside the "Sam's Choice" sodas on the shelf.

            That said, another possibility for a merged CS/Cott would be to sell off their generics business and to concentrate on expanding the market for the "core" brands.

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            • #36
              Originally posted by greg View Post
              Doesn't Cott make generics for major chains? how would this affect that business? Afterall, would it not be a conflict of interest if you are making sodas for the same people you now compete against?
              Actually ABC does private label for a number of supermarkets in the midwest including Roundy's/Pick & Save and Hy-Vee.

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              • #37
                Originally posted by Terry K View Post
                Actually ABC does private label for a number of supermarkets in the midwest including Roundy's/Pick & Save and Hy-Vee.
                I was just going to say that, All of our Roundy's brand soda that you get in Pick-N-save is bottled by ABC. Right across the asile from the roundys are ABC bottled DPSU Products.

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                • #38
                  Originally posted by CitrusCola View Post
                  Cott already owns the rights to the Royal Crown Cola family of drinks outside of the U.S.A. I could see them making a bid to buy out the C-S carbonated drinks.

                  RC International - Refreshment Portfolio
                  Cott reported to be in talks with investors about possible merger with Cadbury | Markets | Headline News | Canadian Business Online

                  You might have hit the nail on the head CitrusCola.
                  beverages@zoominternet.net

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                  • #39
                    Some of those Cott sodas are about as good as generics, though. I remember a few years back they had Stewart's-like flavors in 4pk longnecks in Wal-Mart. Marked down to $1 a 4 pack in some stores, just to clear them out.

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                    • #40
                      Personally, I think this would be better than anybody realizes.
                      It might finally allow schweppes to maximize its potential. Schweppes has a really strong portfolio, but Cadbury did not capitalize on its strong portfolio of brands. I never really understood why Cadbury didn't do that in the first place. Combining Orangina, Snapple, Stewarts, IBC, Motts, Welch's, Country Time, etc etc into one distribution form would have been more benefitial for each brand. I'm sure that whoever purchases Schweppes if it does go up for sale, will cast off some products, but that means someone else will undoubtably pick it up. If it's a decent product (which in most cases for Cadbury, they are), then there will always be at least a small market for it, and someone will be there to try to profit from it, however small it is.

                      I also disagree with the comments that Canada has 3 players. There really aren't. All if any Cadbury-Schweppes are distributed by Coke and Pepsi. Acosta Canada might be marketing the rest of the line, but it doesn't een compare to the big two.

                      So in NB, is it impossible to find Boylans, Stewarts, Fuze, Izze, Steaz, Pop Shoppe, Cool Mountain, Jones, Snapple....etc. etc.??
                      im finding in the last couple of years the selection in canada is catching up with the states for the most part....

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                      • #41
                        Another possibility

                        This article mentions that there is speculation that Cott may "go private."

                        Analysts baffled by Cott-Cadbury Schweppes linkage

                        Maybe there is a private equity firm that wants to buy both CS beverages and Cott. The better parts of CS and Cott could then be combined into a new company, while the other parts could be sold.

                        Something to think about.

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                        • #42
                          What is your C-S rep saying about the future of the company?
                          And with it's buy-out of All American bottling , when , if any, will the logistics of operating a poorly managed company be put in place?
                          It seems as if the method that C-S is doing business is... a bit old!

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                          • #43
                            Rumors are churning again... talk of a Coke buyout of Glaceau, or Tata buying out C-S and merging it with Glaceau.

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                            • #44
                              Most "experts" seem to think a C-S/Cott merger is coming

                              The idea of a private equity firm buying both C-S and Cott and combining them seems to be picking up steam.

                              FT.com / Mergermarket - Cadbury Beverages financing reaches 9x; could go higher, sources say

                              Cott Corporation Investor Relations

                              Some of what I've read indicates that potential buyers think that Cott has some facilities and/or distribution systems that will fill in gaps in the current C-S system. Does anyone know enough about the two businesses to say if that is true?

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