Cott Corporation has announced that it is evaluating ‘strategic alternatives’ for its S&D Coffee and Tea division, including the sale of the unit, as it aims to become a “pure-play water solutions provider”.
S&D Coffee & Tea is one of the largest custom coffee roasters and one of the largest blenders of iced teas for foodservice and convenience stores in the US. The unit acts as Cott’s Coffee, Tea and Extract Solutions operating segment.
According to a statement from Cott, the company has engaged a financial advisor to evaluate whether there are alternatives available to Cott’s Coffee, Tea and Extract Solutions operating segment that would either complement Cott’s strategy of organic growth, or otherwise enhance shareholder value.
The division registered annual sales of around $600 million in its most recent results, and roasts approximately 600,000 pounds of coffee every day, the equivalent to 56 million cups of coffee.
S&D also operates four production facilities in Cabarrus County, North Carolina, and runs a national distribution system of 70 distribution centres strategically located across the US.
The news of a potential sale follows a number of recent acquisitions by Cott and its subsidiaries in the water sector, showcasing the company’s desire to expand the range and scale of its water solutions.
These acquisitions include the purchase of US-based provider of water and office coffee service solutions The Water Guy by Cott’s DS Services division in November, while the company’s Eden Springs subsidiary has acquired water companies Viteau and Watercooler Gigant in the last few months.
© FoodBev Media Ltd 2020
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