Cott, the makers of RC Cola, reported softer than expected fourth quarter results than analysts expected, said Morgan Stanley analyst William Pecoriello.
Pecoriello said Cott suffered soft volume in North America, and was unable to pass the increased price for packaging and ingredients on to consumers.
The company’s stock still has distance to fall, Pecoriello said. He said volumes appear weak in January, and Coca-cola poses a challenge with cost increases below the rate of inflation. Cott hasn’t weathered rising commodity prices as well as larger companies, Pecoriello said, and the consumer soft drink market has been generally soft.