Private Label Growth to Continue After Economic Recovery - Cott Corporation CEO.18 September 2009 - Recession-wary consumers seeking more affordable options in their food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. shopping have shifted increasingly to discount stores and private label brands. However, with the signs that the economic recovery is approaching, some are seen to be moving back towards the famous brands. This trend, however, is not so clearcut for the world's largest maker of private-label carbonated soft drinks, Cott Corporation. Cott, which makes the Sam's Choice drinks for Wal-Mart, would instead argue that private label gains are expected to last well past economic recovery. During its last financial quarter that ended June 27, a tough period for many food and drink companies, Cott reported profit. The firm earned USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 33.7 million compared with a loss of USD 1.8 million for the same period of 2008. The company has also witnessed improved volume trends in last 3 quarters. At an investor meeting in Boston last week, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jerry Fowden said that Cott's re-focus on private label had made good progress. He highlighted that his company's relationships with customers was enhanced and that delivery had significantly improved. Meanwhile, internal expenses were reduced by over USD 14 million in North America, which reported a revenue growth of 4% and accounted for 70% of the company's sales in the last quarter. Meanwhile, the company identified 21% of its fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). last year. The other 79%, representing variable costs such as High Fructose fructose (frŭk`tōs), levulose (lĕv`yəlōs'), or fruit sugar, simple sugar found in honey and in the fruit and other parts of plants. Corn Syrup, aluminium and PET plastics, fluctuated a lot. However, Cott will be continuing with its forward-buying programmes on its key commodities. The soft drinks maker has already catered for the majority of its High Fructose Corn Syrup and aluminium needs for 2009, and for more than half of its aluminium needs for 2010 Fowden argued that consumers are increasingly trying and switching to private label, which can offer 35-40% cost savings versus famous national brands. In addition, Cott's products are given greater exposure by retailers as they have increased their focus on private label to respond to the current economic situation. Fowden cited Nielsen data showing that retailers have sold 20% more carbonated soft drinks on promotion than the previous year. However, Fowden did admit that customer cost savings by buying private label is more in the 30% range at the moment. |
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