Leading PL Drink Maker Acquires Juice Market Counterpart

July 13, 2010
/ Print / Reprints /
/ Text Size+

Combining the businesses of North America’s leading private label soft-drink maker and leading private label juice maker, Cott Corp. CEO Jerry Fowden says, “improves the total portfolio’s strategic breadth and value. We will fill more shelf space.”

Late last week, Toronto-based Cott announced its agreement to acquire privately held Cliffstar Corp. for $500-million cash and other considerations. Founded in 1970, Cliffstar, headquartered in Dunkirk, N.Y., says it is the largest North American private label producer of apple juice, grape juice, cranberry juice and juice-blends. With about 1,200 employees, and $654 million trailing 12-month revenue, Cliffstar operates 11 U.S. facilities.

Strategic points discussed on a Cott conference call covering the acquisition were similar to those cited in other recent examples of consolidation within growing private label markets. These include gaining product diversification and market positions in growing categories; opportunities for reduced costs, up-selling and cross-selling; and participation in diverse channels.

Particular to the Cliffstar acquisition, speaking on the call, Fowden noted that private label penetration and potential is significantly greater in juice than in soft drink categories, given the commanding positions of global brands in soft drinks. Cliffstar also brings expertise in juice ingredients, processing and bottling that are complementary to Cott’s strength in carbonated drinks.

“This transaction will transform Cott into a multi-category beverage producer as a combined supplier across multiple beverage categories, including carbonated soft drinks, juices, and waters,” Fowden says. “The combination provides an attractive single-stop solution to the private label beverage needs of our retail partners.”

Cott says it has identified initial total cost synergies of $20 million on an annualized basis, $14 million of which are expected to be realized in 2011, based on economies of scale and optimized operations and administration. The combined companies will have global revenues of about $2.3 billion.

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

You must login or register in order to post a comment.



Image Galleries

November 2014 New Food Products

This month's new food products are Flours, crepes, lollipops, several candy items, pancakes, dip, fish, raisins, pizza, almond milk, peanut butter, and a breakfast bowl.


Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB November 2014 cover

November 2014

The November 2014 issue of Private Label Buyer - its last issue - includes articles about the retailer as manufacturer and OTC/healthcare items, as well as category insights on pizza and household goods. Check it out today!

Table Of Contents Subscribe

Private Label Segments

Which segment of private label will see the biggest growth over the next year?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px

PLB Marketplace