Cott is learning the lesson the hard way. Wal-Mart has apparently decided to switch out its soft drink assortment, bringing in more Cadbury Schweppes (RC, Diet Rite, etc) and less Sam's Club. A bit unusual, when mostly we hear about more private label rather than less. But not something earth-shattering -- unless you're Cott, and you make Sam's Club, and Wal-Mart is 40% of your volume.
Shares in Cott Corp. were crushed yesterday, after the company confirmed Wal-Mart Stores Inc. will reduce the amount of shelf space it devotes to the company's carbonated soft drinks.
The company's stock dived about 38% on the Toronto Stock Exchange to $2.50. The drop came on the heels of a 20% decline the previous day amid rumours the Arkansas-based retailing giant would cut space and marketing support for Cott brands.