SEC Filings

COTT CORP /CN/ (Form: S-3, Received: 01/22/2004 14:52:30)
 

As filed with the Securities and Exchange Commission on January 22, 2004

Registration No. 333-      



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549


FORM S-3

REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933


COTT CORPORATION
(Exact Name of Registrant as Specified in Its Charter)


     
Canada   None
(State or Other Jurisdiction of
Incorporation or Organization)
  (I.R.S. Employer Identification Number)

207 Queen’s Quay West, Suite 340
Toronto, Ontario M5J 1A7
(416) 203-3898

(Address, Including Zip Code, and Telephone Number, Including Area Code,
of Registrant’s Principal Executive Offices)

Mark R. Halperin, Esq.
Cott Corporation
207 Queen’s Quay West, Suite 340
Toronto, Ontario M5J 1A7
(416) 203-3898

(Name, Address, Including Zip Code, and Telephone N umber, Including
Area Code, of Agent For Service)

Copy to:
H. John Michel, Esq.
Diana E. McCarthy, Esq.
Drinker Biddle & Reath LLP
One Logan Square, 18th & Cherry Streets
Philadelphia, Pennsylvania 19103-6996
(215) 988-2700


      Approximate date of commencement of proposed sale to the public: From time to time after the effective date of this Registration Statement.

     If the only securities being registered on this form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. [  ]

     If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. [x]

     If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [  ]

     If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [  ]    

     If delivery of the prospectus is expected to be made pursuant to Rule 434, please check the following box. [  ]

CALCULATION OF REGISTRATION FEE

                                 
Title of Each Class   Amount   Proposed Maximum   Proposed Maximum   Amount Of
Of Securities To   To Be   Offering Price   Aggregate   Registration
Be Registered   Registered (1)   Per Share (2)   Offering Price (2)   Fee

 
 
 
 
Common Shares without nominal or par value
    2,268,383     $ 28.67     $ 65,034,540.61     $ 5,261.29  

(1) In the event of a share split, share dividend or similar transaction involving the Registrant’s shares, in order to prevent dilution, the number of shares registered automatically shall be increased to cover the additional shares in accordance with Rule 416(a) under the Securities Act of 1933.

(2) Estimated pursuant to Rule 457(c) solely for the purpose of calculating the registration fee. The price and fee are based on the average of the highest and lowest selling prices of the Registrant’s common shares on January 16, 2004 on the New York Stock Exchange.

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.


 

The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

SUBJECT TO COMPLETION, DATED JANUARY 22, 2004

PROSPECTUS

(COTT LOGO)

Cott Corporation

2,268,383 Common Shares

      This prospectus relates to the offer and sale, from time to time, of up to 2,268,383 common shares by the selling security holders listed on page 6 of this prospectus. All of the common shares covered by this prospectus were acquired by the selling security holders from Thomas H. Lee Equity Fund IV, L.P. on December 17, 2003 in private transactions.

      The offer and sale of the common shares covered by this prospectus will be made by the selling security holders listed in this prospectus or by those holders’ pledgees, donees, transferees, or other successors in interest, in accordance with one or more of the methods described in the plan of distribution, which begins on page 8 of this prospectus. We will not receive any of the proceeds from the sale of any common shares by the selling security holders, but we have agreed to bear certain expenses of registering the resale of the common shares under federal and state securities laws.

      Our common shares are listed and traded on the New York Stock Exchange under the symbol “COT” and on the Toronto Stock Exchange under the symbol “BCB.” On January 16, 2004, the last reported sales price of our common shares on the New York Stock Exchange was $28.27 per share and on the Toronto Stock Exchange was Cdn$36.89 per share.

       Consider carefully the Risk Factors beginning on page 2 of this prospectus before deciding to invest in our common shares.

      These securities have not been approved or disapproved by the Securities and Exchange Commission or any state securities commission nor has the Securities and Exchange Commission or any state securities commission passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.

The date of this prospectus is                     , 2004.


 

TABLE OF CONTENTS

     
ABOUT THIS PROSPECTUS
  1
COTT CORPORATION
  1
RISK FACTORS
  2
FORWARD LOOKING STATEMENTS
  5
USE OF PROCEEDS
  6
SELLING SECURITY HOLDERS
  6
PLAN OF DISTRIBUTION
  8
LEGAL MATTERS
  10
EXPERTS
  10
WHERE YOU CAN FIND MORE INFORMATION
  10


 

ABOUT THIS PROSPECTUS

      This prospectus is part of a registration statement that we filed with the Securities and Exchange Commission (the “SEC”) using a “shelf” registration process. Under this shelf registration process, the selling security holders may, from time to time, offer and sell the common shares covered by this prospectus. Each time a selling security holder offers common shares under this prospectus, it will provide a prospectus supplement that will contain specific information about the terms of that offering. The prospectus supplement may also add, update, or change information contained in this prospectus. You should read both this prospectus and any prospectus supplement together with the additional information described in the section of this prospectus entitled “Where You Can Find More Information,” which begins on page 10 of this prospectus.

      We have not authorized any dealer, salesperson, or other person to give any information or to make any representation other than those contained or incorporated by reference in this prospectus. You must not rely upon any information or representation not contained or incorporated by reference in this prospectus.

      This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities other than the registered securities to which it relates, nor does this prospectus constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction.

      Our consolidated financial statements incorporated by reference in this prospectus have been prepared in accordance with United States generally acceptable accounting principles in U.S. dollars. Unless otherwise indicated, all amounts in this prospectus are in U.S. dollars.

      You should assume the information contained in this prospectus or the documents incorporated by reference is accurate only as of the date on the front cover of this prospectus or as of the dates of those incorporated documents, respectively. Our business, financial condition, results of operations, and prospects may have changed since those dates.

COTT CORPORATION

      We are the leading supplier of premium quality retailer-brand carbonated soft drinks in the United States, Canada, and the United Kingdom. We operate our United States business through an indirect wholly-owned subsidiary, Cott Beverages Inc. (a Georgia company), our Canadian business through our Cott Beverages Canada division, and our United Kingdom business through an indirect wholly-owned subsidiary, Cott Beverages Ltd. (a United Kingdom company). In addition to carbonated soft drinks, our product lines include clear, sparkling flavored beverages, juices, and juice-based products, bottled water, energy drinks, and iced teas. Our products are sold principally under customer controlled retailer-brands, but we also offer products under brand names that we own or license from others.

      Our principal executive offices are located at 207 Queen’s Quay West, Suite 340, Toronto, Ontario, Canada M5J 1A7. Our telephone number at that office is (416) 203-3898.

      For additional information about us that is incorporated by reference in this prospectus, see the section of this prospectus entitled “Where You Can Find More Information,” which begins on page 10 of this prospectus.

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RISK FACTORS

      Your investment in our common shares will involve risks. Before making an investment decision, you should consider carefully the following risk factors and the other information contained or incorporated by reference in this prospectus. This section includes or refers to forward-looking statements. You should refer to the explanation of the qualifications and limitations on forward-looking statements in the section of this prospectus entitled “Forward Looking Statements,” which begins on page 5 of this prospectus.

Risk Factors Relating to Our Business

 
Because a small number of customers account for a significant percentage of our sales, our revenues could decline if we lose any significant customer.

      A significant portion of our sales are concentrated in a small number of customers. Our customers include many large national and regional grocery, mass-merchandise, drugstore, wholesale and convenience store chains in our core markets of the United States, Canada and the United Kingdom. For the year ended December 28, 2002 and the nine-month period ended September 27, 2003, sales to one major customer accounted for approximately 40% and 42%, respectively, of our total sales. For the same periods, our top ten customers accounted for approximately 71% of our total sales. We expect that sales of our products to a limited number of customers will continue to account for a high percentage of our sales for the foreseeable future. The loss of any significant customer, or customers which in the aggregate represent a significant portion of our sales, could have a material adverse effect on our operating results and cash flows.

 
We may be unable to compete successfully in the highly competitive beverage market.

      The markets for our products are extremely competitive. In comparison to the major, national-brand beverage manufacturers, we are a relatively small participant in the industry. We face competition from the national-brand beverage manufacturers in all of our markets and from other retailer-brand beverage manufacturers in the United States and the United Kingdom. If our competitors reduce their selling prices or increase the frequency of their promotional activities in our core markets or if our customers do not allocate adequate shelf space for beverages supplied by us, we could lose market share or be forced to reduce pricing or increase capital and other expenditures, any of which could adversely affect our profitability.

 
If we fail to manage our expanding operations successfully, our business and financial results may be materially and adversely affected.

      Our success depends, in part, on our ability to manage new acquisitions. In recent years, we have grown our business and beverage offerings primarily through acquisitions of other companies, new product lines and growth with key customers. A part of our strategy is to continue to expand our business through acquisitions and alliances. To succeed in this strategy, we must identify appropriate acquisition or strategic alliance candidates. The success of this strategy also depends on our ability to manage and integrate acquisitions and alliances at a pace consistent with the growth of our business. We cannot assure you that acquisition opportunities will be available, that we will continue to acquire businesses and product lines or that any of the businesses or product lines that we acquire or align with will be integrated successfully into our business or prove profitable.

 
If we are unable to maintain relationships with our raw material suppliers, we may incur higher supply costs.

      We purchase a significant portion of the ingredients we need to produce our products, including sweeteners and carbon dioxide, and our primary packaging supplies, including polyethylene terephthalate (PET) bottles, caps and preforms, cans and lids, labels, cartons and trays, from outside vendors. We have a variety of suppliers for many of our materials, and we maintain long-standing relationships with many of these suppliers. We typically enter into annual supply arrangements rather than long-term contracts with suppliers, but we have long-term agreements with respect to some of our key packaging supplies, such as aluminum cans and lids and PET bottles, and some of our key ingredients, such as artificial sweeteners. We recently entered

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into a new agreement with our principal aluminum can supplier. While we believe that we could replace these key suppliers if the need arose, we could incur higher ingredient and packaging supply costs in doing so, which could have a material adverse effect on our results of operations.
 
Our ingredients and packaging supplies vary in cost and we may be unable effectively to pass rising costs on to our customers.

      The underlying commodity costs of our ingredients and packaging supplies, such as resin for PET bottles, aluminum for cans, and high fructose corn syrup, are cyclical and historically have been subject to price volatility. The majority of our contracts allow our suppliers to alter the costs they charge us for ingredients and packaging supplies based on changes in these commodity costs, and in some cases other factors, at certain predetermined times and subject to defined guidelines, meaning that we bear the risk of shifts in the market costs of these commodities. We do not use derivative instruments to manage this risk. If the cost of these ingredients or packaging supplies increase, we may be unable to pass these costs along to our customers through corresponding or contemporaneous adjustments to the prices we charge.

 
Our success depends, in part, on our intellectual property, which we may be unable to protect.

      Our success depends, in part, on our ability to protect our intellectual property, including our concentrate formulas. We may not be successful in protecting our intellectual property for a number of reasons, including if our competitors independently developed intellectual property that is similar to or better than ours or if our intellectual property were successfully challenged, invalidated or circumvented. If we are unable to protect our intellectual property, it would weaken our competitive position.

 
We are not in compliance with the requirements of the Ontario Environmental Protection Act and, if the Ontario government seeks to enforce those requirements or implements modifications to them, we could be adversely affected.

      Certain regulations under the Ontario Environmental Protection Act provide that a minimum percentage of a bottler’s soft drink sales within specified areas in Ontario must be made in refillable containers. We, along with other industry participants, are currently not in compliance with the requirements of the Ontario Act. Ontario is not enforcing the Ontario Act at this time, but if it chose to enforce the Act in the future we could incur fines for non-compliance and the possible prohibition of sales of soft drinks in non-refillable containers in Ontario.

      In April of 2003, the Ontario Ministry of the Environment proposed to revoke these regulations in favor of new mechanisms under the Ontario Waste Diversion Act to enhance diversion from disposal of carbonated soft drink containers. On December 22, 2003, the Ontario provincial government approved the implementation of the Blue Box Program plan under the Ministry of Environment Waste Diversion Act. The Program requires those parties who introduce packaging and printed materials into the Ontario consumer marketplace to begin contributing, as of February 2004, to the net cost of the municipal Blue Box Program. Primary responsibility for this cost rests with brand owners or licensees of rights to brands which are manufactured, packaged or distributed for sale in Ontario. The Program does not revoke any of the regulations mentioned above under the Environmental Protection Act regarding refillable containers. We are currently analyzing the costs of complying with the Program. Therefore, its financial impact on us is uncertain.

 
Our geographic diversity subjects us to the risk of currency fluctuations.

      We are exposed to changes in foreign currency exchange rates, including those between the U.S. dollar, on the one hand, and the Canadian dollar and the pound sterling, on the other hand. Our operations outside of the United States accounted for approximately 26% of our 2002 sales and our sales for the first nine months of 2003. We do not currently use derivative instruments to manage our exposure to foreign currency exchange rate risk. Accordingly, currency fluctuations in respect of our outstanding non-U.S. dollar denominated net asset balances may affect our reported results and competitive position.

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Our degree of leverage may adversely affect us.

      As of September 27, 2003, we had total consolidated long-term indebtedness of $279.4 million and our net-debt to net-debt-plus-equity ratio equaled 50%. We are subject to certain risks that are associated with this level of debt.

      We will be required to use a significant portion of our cash flow to service our debt. In 2003, we repaid our $86.6 million term bank loan, which reduced our long-term debt repayments in 2004 and 2005 to $3.1 million and $1.2 million, respectively. Our committed, revolving, secured credit facility was increased from $75.0 million to $100.0 million on December 23, 2003. Borrowings under this credit facility must be repaid by the expiration date of December 31, 2005. As of December 23, 2003, $59.6 million was outstanding under this credit facility. These debt levels could limit our financial flexibility and ability to obtain favorable financing for future operations and acquisitions.

      Our indebtedness is comprised of fixed rate debt and variable rate debt. We are exposed to changes in interest rates with respect to the variable rate debt, which is entirely comprised of short-term borrowings. We do not currently use derivative instruments to hedge interest rate exposure. However, we do regularly review the structure of our indebtedness and consider changes to the proportion of variable versus fixed rate debt through refinancing, interest rate swaps or other measures in response to the changing economic environment. We cannot assure you that we will be able to continue to refinance our indebtedness on terms that are favorable to us. If we are unable to refinance our indebtedness or otherwise adequately manage our debt structure in response to changes in the market, our interest expense could increase, which would negatively impact our financial condition and results of operations.

Risk Factors Relating to the Market for Our Common Shares

 
The price of our common shares may be volatile, and a purchaser of our common shares may not be able to resell those shares at or above the purchase price, or at all.

      The market price of our common shares has been volatile from time to time in the past and may change rapidly in the future. The following factors, among others, may cause significant volatility in the price of our common shares:

  •  announcements by us, our competitors or our customers;
 
  •  the introduction of new or enhanced products and services by us or our competitors;
 
  •  rumors relating to us or our competitors;
 
  •  actual or anticipated fluctuations in our operating results; and
 
  •  general market or economic conditions.

 
A substantial number of our common shares are available for sale in the public market and sales of those shares could adversely affect the price of our common shares.

      Sales of a substantial number of our common shares into the public market, or the perception that those sales could occur, could adversely affect the price of our common shares or could impair our ability to obtain capital through an offering of equity securities. As of December 17, 2003, we had 70,258,831 common shares issued and outstanding. Of these shares, most are freely transferable without restriction under securities legislation and a substantial portion of the remaining shares may be sold subject to the volume restrictions, manner-of-sale provisions and other conditions of Rule 144 under the Securities Act of 1933.

 
We are subject to significant influence by some shareholders that may have the effect of delaying or preventing a change in control.

      As of December 17, 2003 (after giving effect to the sales by Thomas H. Lee Equity Fund IV, L.P. described in this prospectus and related sales by certain of its affiliates), our directors, executive officers and principal shareholders and their affiliates collectively were deemed beneficially to own approximately 22.74%

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of our outstanding common shares, including options exercisable within 60 days of December 17, 2003. As a result, these shareholders are able to exercise significant influence over matters requiring shareholder approval, including the election of directors and approval of significant corporate transactions. This concentration of ownership may also have the effect of delaying, preventing or discouraging a change in control of our company.
 
Exercise of options to purchase our common shares could adversely affect the price of our common shares and will be dilutive.

      Shares issued pursuant to the exercise of options could dilute the holdings of existing stockholders. As of December 17, 2003, there were outstanding options to purchase a total of 4,067,154 of our common shares at a weighted average exercise price of $17.21 (Cdn$22.81) per share. Holders of options to purchase our common shares will probably exercise them only at a time when the price of our common shares is higher than the respective exercise or conversion prices of those options. Accordingly, we may be required to issue common shares at a price substantially lower than the market price of our common shares. This could adversely affect the price of our common shares. In addition, if and when these shares are issued, the percentage of our common shares that existing shareholders own will be diluted.

FORWARD LOOKING STATEMENTS

      In addition to historical information, this prospectus and the reports and other documents incorporated by reference in this prospectus contain statements relating to future events and our future results. These statements are “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995 and include, but are not limited to, statements that relate to projections of sales, earnings, earnings per share, cash flows, capital expenditures, or other financial items, discussions of estimated future revenue enhancements and cost savings. These statements also relate to our business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, liquidity, and capital resources. Generally, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” and similar terms and phrases are used to identify forward-looking statements in this prospectus and in the reports and other documents incorporated by reference in this prospectus. These forward-looking statements are made as of the date of this prospectus.

      Although our management believes the assumptions underlying these forward-looking statements are reasonable, any of these assumptions could prove to be inaccurate and, as a result, the forward-looking statements based on those assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside of our control, and any one or any combination of these risks and uncertainties could also affect whether the forward-looking statements ultimately prove to be correct.

      The following are some of the factors that could affect our financial performance, including, but not limited to, sales, earnings and cash flows, or could cause actual results to differ materially from estimates contained in or underlying the forward-looking statements:

  •  loss of key customers, particularly Wal-Mart, and the commitment of retailer-brand beverage customers to their own retailer brand beverage programs;
 
  •  increases in competitor consolidations and other market-place competition, particularly among branded beverage products;
 
  •  our ability to identify acquisition and alliance candidates and to integrate into our operations the businesses and product lines that are acquired or allied with;
 
  •  fluctuations in the cost and availability of beverage ingredients and packaging supplies, and our ability to maintain favorable arrangements and relationships with our suppliers;
 
  •  unseasonably cold or wet weather, which could reduce demand for our beverages;
 
  •  our ability to protect the intellectual property inherent in new and existing products;

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  •  adverse rulings, judgments, or settlements in our existing litigation, and the possibility that additional litigation will be brought against us;
 
  •  product recalls or changes in or increased enforcement of the laws and regulations that affect our business;
 
  •  currency fluctuations that adversely affect the exchange rate between the U.S. dollar, on the one hand, and the Canadian dollar, the pound sterling, and certain other currencies, on the other hand;
 
  •  changes in interest rates;
 
  •  changes in tax laws and interpretations of tax laws;
 
  •  changes in consumer tastes and preference and market demand for new and existing products;
 
  •  changes in general economic and business conditions; and
 
  •  increased acts of terrorism or war.

      Many of these factors are described in greater detail in our other filings with the SEC. We undertake no obligation to update any information contained in this prospectus or to publicly release the results of any revisions to forward-looking statements to reflect events or circumstances that we may become aware of after the date of this prospectus. Undue reliance should not be placed on forward-looking statements.

      All future written and oral forward-looking statements attributable to management or other persons acting on our behalf are expressly qualified in their entirety by the foregoing.

USE OF PROCEEDS

      We will not receive any of the proceeds from the sale of the shares by the selling security holders, nor will any of the proceeds be available for our use or otherwise for our benefit. All proceeds from the sale of the shares will be for the account of the selling security holders.

SELLING SECURITY HOLDERS

Background

      All of the 2,268,383 common shares covered by this prospectus were purchased by the selling security holders listed in the table below from Thomas H. Lee Equity Fund IV, L.P. in private transactions consummated on December 17, 2003. All of those shares were originally acquired by Thomas H. Lee Equity Fund IV, L.P. upon the conversion in June 2002 of our convertible preferred shares purchased by that entity from us in July 1998 and upon the exercise in July 2002 of options purchased by that entity from certain third parties in July 1998. In connection with the sales from Thomas H. Lee Equity Fund IV, L.P. to the selling security holders listed below, we agreed to prepare and file with the SEC the registration statement of which this prospectus is a part registering the resale of those shares by the selling security holders.

Beneficial Ownership

      The table below provides the following information:

  •  the names of the selling security holders as of the date of this prospectus;
 
  •  the number of common shares that each such holder may offer and sell from time to time under this prospectus; and
 
  •  the number of common shares beneficially owned by each such holder as of the date of this prospectus and as of the completion of the offering to which this prospectus relates, in each case as determined in accordance with applicable rules promulgated by the SEC.

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      The information presented in this table assumes that the selling security holders will sell all of the shares offered under this prospectus. However, because the selling security holders may sell all, some, or none of their shares under this prospectus, or in another permitted manner, no assurances can be given as to the actual number of shares that will be sold by the selling security holders or that will be held by the selling security holders after completion of the offering to which this prospectus relates.

      This table is prepared based upon information supplied to us by the listed selling security holders. However, since the date on which the information in this table is presented, the selling security holders listed in this table may have sold or transferred, in transactions exempt from registration requirements of the Securities Act, some or all of their shares or may have acquired additional shares. The shares covered by this prospectus may be offered from time to time by the selling security holders named below or by their pledgees, donees, transferees, or other successors in interest. Information concerning the selling security holders may change from time to time and changed information will be presented in a supplement to this prospectus if and when necessary or required.

      The applicable percentages of ownership are based on an aggregate of 70,258,831 common shares issued and outstanding on December 17, 2003.

                                 
Shares Beneficially
Number of Shares Owned After Offering
Name of Beneficially Owned Number of Shares
Selling Security Holder Prior to Offering Being Offered Number Percentage





Fidelity Contrafund(1)
    2,235,500       779,500       1,456,000       2.1 %
Fidelity Contrafund: Fidelity Advisor New Insights Fund(1)
    12,900       2,900       10,000       *  
Variable Insurance Products Fund II: Contrafund Portfolio(1)
    632,200       220,500       411,700       *  
T. Rowe Price Mid-Cap Growth Fund, Inc.(2)
    3,000,000       500,000       2,500,000       3.6 %
T. Rowe Price Institutional Mid-Cap Equity Growth Fund, Inc.(2)
    120,000       18,000       102,000       *  
T. Rowe Price Mid-Cap Growth Portfolio, Inc.(2)
    152,000       25,000       127,000       *  
St. Gobain Corporation — Mid-Cap Growth(2)
    6,300       900       5,400       *  
Maxim Series Fund, Inc. — Maxim T. Rowe Price MidCap Growth Portfolio(2)
    101,000       17,000       84,000       *  
Met Investors Series Trust — T. Rowe Price Mid-Cap Growth Portfolio(2)
    102,000       16,000       86,000       *  
TD Mutual Funds — TD U.S. Mid-Cap Growth Fund(2)
    77,000       12,000       65,000       *  
JNL Series Trust — T. Rowe Price/ JNL Mid-Cap Growth Fund(2)
    113,000       19,000       94,000       *  
MassMutual Institutional Funds — MassMutual Mid Cap Growth Equity II Fund(2)
    151,000       23,000       128,000       *  
Allmerica Investment Trust — Select Capital Appreciation Fund(2)
    86,000       17,000       69,000       *  
Marriott International Mid Cap Growth Portfolio(2)
    31,100       5,100       26,000       *  
PensionsInvest — U.S. Mid Cap Growth(2)
    12,500       2,000       10,500       *  
Neuberger Berman Genesis Fund
    1,327,400       600,000       727,400       1.0 %
Caxton Equity Growth LLC
    12,990       10,483       2,507       *  
TOTAL
            2,268,383                  

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  * Less than 1%.

(1)  This selling security holder is either an investment company or a portfolio of an investment company registered under Section 8 of the Investment Company Act of 1940, as amended, or a private investment account advised by Fidelity Management & Research Company.
 
(2)  T. Rowe Price Associates, Inc. acts as investment advisor to this selling security holder and, accordingly, would be deemed to have beneficial ownership of the shares held by such holder, as well as shares held by the other selling security holders for which it serves as investment advisor and any other advisory clients over which it has investment authority.

      To our knowledge, none of the selling security holders nor any of their affiliates, officers, directors, or principal equity holders has held any position or office or has had any material relationship with us within the past three years.

PLAN OF DISTRIBUTION

      This prospectus relates to the offer and sale from time to time of up to 2,268,383 common shares by the selling security holders, which includes the holders listed above under the caption “Selling Security Holders” and any of their respective pledgees, donees, transferees, or other successors in interest (including successors by gift, partnership distribution or other non-sale-related transfer effected after the date of this prospectus). The selling security holders will act independently of us and one another in making decisions with respect to the timing, manner, and size of each sale of common shares covered by this prospectus.

      The sale of the shares by the selling security holders may be effected from time to time by selling the shares directly to purchasers or through one or more underwriters or broker-dealers. In connection with any such sale, any such underwriters or broker-dealers may act as agent for the selling security holders or may purchase from the selling security holders all or a portion of the shares as principal, and any such sale may be made pursuant to any of the methods described below. If the selling security holders sell the shares through underwriters or broker-dealers, the selling security holders will be responsible for underwriting discounts or commissions or agents’ commissions. The total proceeds to the selling security holders will be the purchase price of the shares, less any discounts and commissions paid by the selling security holders. We will not receive any of the proceeds from the selling security holders’ sale of the common shares.

      The SEC may deem the selling security holders and any underwriters, broker-dealers, or other agents who participate in the distribution of the shares to be “underwriters,” within the meaning of the Securities Act. As a result, the SEC may deem any profits the selling security holders make by selling the shares and any discounts, commissions, or concessions received by any underwriters, broker-dealers, or other agents to be underwriting discounts and commissions under the Securities Act. Selling security holders who are “underwriters” will be subject to the prospectus delivery requirements of the Securities Act. To our knowledge, there are currently no plans, arrangements, or understandings between any selling security holders and any underwriter, broker-dealer, or other agent regarding the sale of the shares.

      The selling security holders and any other person who participates in distributing the shares will be subject to the Securities Exchange Act. The Securities Exchange Act rules include Regulation M, which may limit the timing of purchases and sales of any of the shares by the selling security holders and any such other person. In addition, Regulation M may restrict the ability of any person engaged in the distribution of the shares to engage in market-making activities with respect to the shares. This may affect the shares’ marketability and the ability of any person to engage in market-making activities with respect to the shares.

      The selling security holders may sell the shares in one or more transactions:

  •  on the New York Stock Exchange or any other stock exchange or automated interdealer quotation system on which the shares are then listed or traded;
 
  •  in the over-the-counter market; or
 
  •  in privately negotiated transactions.

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      These sales may be effected at:

  •  fixed prices;
 
  •  prevailing market prices at the time of sale;
 
  •  varying prices determined at the time of sale; or
 
  •  negotiated prices.

      The shares also may be sold in one or more of the following transactions:

  •  block transactions (which may involve crosses) in which a broker-dealer may sell all or a portion of such shares as agent but may position and resell all or a portion of the block as principal to facilitate the transaction;
 
  •  purchases by a broker-dealer as principal and resale by such broker-dealer for its own account;
 
  •  a special offering, an exchange distribution, or a secondary distribution in accordance with applicable New York Stock Exchange or other stock exchange rules;
 
  •  ordinary brokerage transactions and transactions in which any such broker-dealer solicits purchasers;
 
  •  sales in other ways not involving market makers or established trading markets, including direct sales to purchasers;
 
  •  short sales;
 
  •  the writing of options, whether or not the options are listed on an options exchange;
 
  •  distribution by a selling security holder to its partners, members or stockholders;
 
  •  any other method of sale permitted pursuant to applicable law; and
 
  •  any combination of any of these methods of sale.

      In effecting sales, broker-dealers engaged by the selling security holders may arrange for other broker-dealers to participate. Broker-dealers will receive commissions or other compensation from the selling security holders in amounts to be negotiated immediately prior to the sale. Broker-dealers may also receive compensation from purchasers of the shares that is not expected to exceed that customary in the types of transactions involved.

      Some of the underwriters, broker-dealers, or agents and their associates may be customers of, engage in transactions with, or perform services for us in the ordinary course of business.

      From time to time, the selling security holders may pledge, hypothecate or grant a security interest in some or all of the shares owned by them. The pledges, secured parties or persons to whom the shares have been hypothecated will, upon foreclosure in the event of default, be deemed to be selling security holders. The number of a selling security holder’s shares offered under this prospectus will decrease as and when it takes such actions, but the plan of distribution for that selling security holder will otherwise remain unchanged. In addition, a selling security holder may, from time to time, sell the shares short, including in connection with hedging transactions. In those instances, this prospectus may be delivered in connection with the short sales and the shares offered under this prospectus may be used to cover those short sales.

      The selling security holders are not obligated to, and there is no assurance that the selling security holders will, sell any or all of the shares covered by this prospectus. In addition, the shares that qualify for sale under Rule 144 of the Securities Act may be sold under Rule 144 rather than under this prospectus. The selling security holders also may transfer, devise, or gift the shares by other means not described in this prospectus.

      In connection with the sales by Thomas H. Lee Equity Fund IV, L.P. of the common shares covered by this prospectus to the selling security holders, we agreed to prepare and file with the SEC the registration statement of which this prospectus is a part registering the resale of those shares by the selling security holders, including the payment of our costs of such filing. We have also agreed not to sell or issue, or negotiate

9


 

or enter into any agreements to sell or issue, any additional common shares or securities convertible into common shares, other than under employee stock options or other share plans or any other existing agreements or instruments already issued or authorized, for a period of 90 days following December 1, 2003, without the prior consent of the lead placement agent for the private offering in which the selling security holders acquired the common shares covered by this prospectus, such consent not to be unreasonably withheld.

      We have agreed to keep the registration statement of which this prospectus is a part effective until the earlier of (i) the first anniversary of the effective date of the registration statement, or (ii) the date on which the distribution contemplated by this prospectus has been completed. However, at any time and from time to time, we may suspend the availability of this prospectus, and direct the selling security holders accordingly to discontinue offers and sales of their common shares pursuant to this prospectus, if (a) the SEC issues a stop order suspending the effectiveness of the registration statement of which this prospectus is a part, (b) any event occurs or fact exists that would result in this prospectus containing any untrue statement of a material fact or omitting to state a material fact required to be stated herein or necessary to make the statements herein, in light of the circumstances under which they were made, not misleading, or (c) any corporate development (including, without limitation, a potential acquisition or divestiture, a financing, or the review by the SEC of our prior SEC filings) occurs or is pending that, in our reasonable judgment, makes it appropriate to suspend the availability of this prospectus.

 
LEGAL MATTERS

      The legality of the shares offered hereby will be passed upon for us by Drinker Biddle & Reath LLP, Philadelphia, Pennsylvania, our U.S. counsel.

 
EXPERTS

      The consolidated financial statements incorporated in this prospectus by reference to our Annual Report on Form 10-K filed on March 17, 2003 for the fiscal year ended December 28, 2002 have been so incorporated in reliance on the report of PricewaterhouseCoopers LLP, independent accountants, given on the authority of said firm as experts in auditing and accounting.

 
WHERE YOU CAN FIND MORE INFORMATION

      We are subject to the informational requirements of the Securities Exchange Act of 1934, which require us to file annual, quarterly and special reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s web site at http://www.sec.gov. You may also read and copy our SEC filings at the SEC’s Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549. You may call the SEC at 1-800-SEC-0330 for further information on the public reference facilities. In addition, our common shares are listed on the New York Stock Exchange, and our SEC filings can be inspected at the offices of the New York Stock Exchange, 20 Broad Street, New York, New York 10005.

      The SEC allows us to “incorporate by reference” the information in documents we file with the SEC, which means that we can disclose important information to you by referring you to those documents. The information we incorporate by reference is considered to be part of this prospectus, and information in documents that we file after the date of this prospectus will automatically update and supersede the information in this prospectus.

      We incorporate by reference the documents listed below and all documents filed after the date of this prospectus under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act:

        1.     2002 Annual Report on Form 10-K, filed on March 17, 2003.
 
        2.     Quarterly Reports on Form 10-Q for the quarters ended March 29, 2003, filed on May 13, 2003, June 28, 2003, filed on August 12, 2003, and September 27, 2003, filed on November 12, 2003.

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        3.     Current Reports on Form 8-K dated April 16, 2003, July 17, 2003, and October 16, 2003.
 
        4.     Registration Statement on Form 8-A/12(b), filed on July 25, 2002, setting forth the description of our common shares, including any amendment or reports filed for the purpose of updating such information.

      We will provide without charge to each person to whom a copy of this prospectus is delivered, upon their written or oral request, a copy of any or all of the documents we have incorporated in this prospectus by reference. Requests for copies should be directed to:

Cott Corporation

207 Queen’s Quay West, Suite 340
Toronto, Ontario M5J 1A7
Attention: Senior Vice President, General Counsel & Secretary
Telephone: (416) 203-3898

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COTT LOGO


Cott Corporation

2,268,383 Common Shares


PROSPECTUS

                                    , 2004

 


 

PART II
INFORMATION NOT REQUIRED IN PROSPECTUS

Item 14. Other Expenses of Issuance and Distribution.

          The following table sets forth the costs and expenses, other than selling or underwriting discounts and commissions, we will incur in connection with the issuance and distribution of the securities being registered. All amounts shown are estimated except the SEC registration fee.

         
Securities and Exchange Commission Registration Fee
  $ 5,262  
Legal Fees and Expenses
    60,000  
Accounting Fees and Expenses
    3,000  
Miscellaneous Expenses
    5,000  
 
   
 
Total
  $ 73,262  

Item 15. Indemnification of Directors and Officers.

          The corporation laws of Canada and our charter and by-laws include provisions designed to limit the liability of our officers and directors against certain liabilities. These provisions are designed to encourage qualified individuals to serve as our officers and directors.

          Under the Canada Business Corporations Act, a corporation may indemnify certain persons associated with the corporation or, at the request of the corporation, another entity, against all costs, charges, and expenses (including an amount paid to settle an action or satisfy a judgment) reasonably incurred by him or her in respect of any civil, criminal, administrative, investigative, or other proceeding in which he or she is involved because of that association with the corporation or other entity. Indemnifiable persons are current and former directors or officers, other individuals who act or acted at the corporation’s request as a director or officer, or an individual acting in a similar capacity of another entity.

          The law permits indemnification only if the indemnifiable person acted honestly and in good faith with a view to the best interests of the corporation or, as the case may be, to the best interests of the other entity for which the individual acted as a director or officer in a similar capacity at the corporation’s request and, in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, he or she had reasonable grounds for believing his or her conduct was lawful and he or she was not judged by a court or other competent authority to have committed any fault or omitted to do anything he or she ought to have done. With the approval of the court, a corporation may also indemnify an indemnifiable person in respect of an action by or on behalf of the corporation to which the indemnifiable person is made a party because of his or her association with the corporation.

          Sections 7.02 and 7.04 of our by-laws provide that, without in any manner derogating from or limiting the mandatory provisions of the Canada Business Corporations Act but subject to the conditions contained in the by-laws, we shall indemnify any of our directors or officers,

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former directors or officers, and each individual who acts or acted at our request as a director or officer, or each individual acting in a similar capacity at another entity, against all costs, charges, and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative, or other proceeding in which the individual is involved because of that association with us or another entity to the extent that the individual seeking the indemnity:

  acted honestly and in good faith with a view to our best interests or the best interest of the other entity for which the individual acted as a director or officer or in a similar capacity at our request, as the case may be; and

  in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the individual had reasonable grounds for believing that his or her conduct was lawful.

          Both the Canada Business Corporations Act and our by-laws expressly provide for us to advance moneys to a director, officer, or other individual for the costs, charges, and expenses of a proceeding referenced above. The individual is required to repay the moneys if he or she does not fulfill the aforementioned conditions. Section 7.05 of our by-laws states that, subject to the limitations contained in the Canada Business Corporations Act, we may purchase and maintain insurance for the benefit of our directors and officers as such, as the board may from time to time determine.

          In addition to the provisions found in our charter and by-laws, we have entered into an indemnification agreement with our chairman and chief executive officer by way of an employment agreement. Under the employment agreement, if such officer is made a party, or is threatened to be made a party, to any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, by reason of the fact that he is or was a director, officer, or employee of us or is or was serving at our request as a director, officer, member, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, including service with respect to employee benefit plans, whether or not the basis of such proceeding is his alleged action in an official capacity while serving as a director, officer, member, employee, or agent, we shall indemnify and hold him harmless to the fullest extent legally permitted or authorized by our charter, by-laws, resolutions of our board of directors, or, if greater, by the laws of the Province of Ontario, and the Federal Laws of Canada applicable to us, against all cost, expense, liability, and loss (including, without limitation, attorney’s fees, judgments, fines, ERISA excise taxes, or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by him in connection therewith, and such indemnification shall continue as to such officer even if he has ceased to be a director, member, employee, or agent of us or another entity at our request and shall inure to the benefit of the his heirs, executors, and administrators. We are also required to advance to such officer all reasonable costs and expenses incurred by him in connection with a proceeding within 20 days after our receipt of a written request for such advance. Such request shall include an undertaking by such officer to repay the amount of such advance if it shall ultimately be determined that he is not entitled to be indemnified against such costs and expenses.

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Item 16. Exhibits.

     
Exhibit    
Number   Description

 
4.1   Articles of Amalgamation of Cott Corporation (incorporated by reference to Exhibit 3.1 to Cott Corporation’s Form 10-K filed on March 31, 2000 for the fiscal year ended January 1, 2000)
     
4.2   By-Laws of Cott Corporation (incorporated by reference to Exhibit 3.2 to Cott Corporation’s Form 10-K filed on March 8, 2002 for the fiscal year ended December 29, 2001)
     
5   Opinion of Drinker Biddle & Reath LLP (filed herewith)
     
10.1   (*) Employment Agreement of Mark Benadiba dated October 15, 2003 (filed herewith)
     
10.2   (*) Agreement effective July 18, 2003 amending the Employment Agreement between Cott Corporation and Paul R. Richardson dated August 23, 1999, as amended (filed herewith)
     
10.3   (*) Agreement effective July 18, 2003 amending the Employment Agreement between Cott Corporation and John K. Sheppard dated December 21, 2001 (filed herewith)
     
23.1   Consent of PricewaterhouseCoopers LLP (Independent Public Accountants of the Registrant) (filed herewith)
     
23.2   Consent of Drinker Biddle & Reath LLP (included in Exhibit 5)
     
24   Powers of Attorney (included on signature page)


(*)   Indicates a management contract or compensatory plan.

Item 17. Undertakings.

          Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such

II-3


 

indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

          The undersigned registrant hereby undertakes:

          (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

                    (i) To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;

                    (ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;

                    (iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if the registration statement is on Form S-3, Form S-8 or Form F-3, and the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement.

          (2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

          (3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

          (4) That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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SIGNATURES

          Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Toronto, Ontario, Canada, on January 22, 2004.

       
  COTT CORPORATION
       
       
  By:   /s/ Frank E. Weise III
   
      Frank E. Weise III
      Chief Executive Officer

POWER OF ATTORNEY

          KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below, does hereby constitute and appoint Frank E. Weise III and Raymond P. Silcock, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement and to file the same with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or either of them, or his or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

          Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated:

         
/s/ Frank E. Weise III   Chairman and Chief Executive   Date: January 22, 2004

  Officer    
Frank E. Weise III   (Principal Executive Officer)    
         
/s/ Raymond P. Silcock   Executive Vice-President and   Date: January 19, 2004

  Chief Financial Officer    
Raymond P. Silcock   (Principal Financial Officer)    
         
/s/ Tina Dell’Aquila   Vice President, Controller   Date: January 19, 2004

  and Assistant Secretary    
Tina Dell’Aquila   (Principal Accounting Officer)    

 


 

         
/s/ John K. Sheppard   President, Chief Operating   Date: January 22, 2004

  Officer and Director    
John K. Sheppard        
         
/s/ Serge Gouin   Director   Date: January 19, 2004

       
Serge Gouin        
         
/s/ Colin J. Adair   Director   Date: January 22, 2004

       
Colin J. Adair        
         
/s/ W. John Bennett   Director   Date: January 22, 2004

       
W. John Bennett        
         
/s/ C. Hunter Boll   Director   Date: January 22, 2004

       
C. Hunter Boll        
         
/s/ Thomas M. Hagerty   Director   Date: January 22, 2004

       
Thomas M. Hagerty        
         
/s/ Stephen H. Halperin   Director   Date: January 20, 2004

       
Stephen H. Halperin        
         
/s/ David V. Harkins   Director   Date: January 22, 2004

       
David V. Harkins        
         
/s/ Philip B. Livingston   Director   Date: January 20, 2004

       
Philip B. Livingston        
         
/s/ Christine A. Magee   Director   Date: January 20, 2004

       
Christine A. Magee        
         
/s/ Donald G. Watt   Director   Date: January 22, 2004

       
Donald G. Watt        

 


 

EXHIBIT INDEX

     
Exhibit    
Number   Description

 
4.1   Articles of Amalgamation of Cott Corporation (incorporated by reference to Exhibit 3.1 to Cott Corporation’s Form 10-K filed on March 31, 2000 for the fiscal year ended January 1, 2000)
     
4.2   By-Laws of Cott Corporation (incorporated by reference to Exhibit 3.2 to Cott Corporation’s Form 10-K filed on March 8, 2002 for the fiscal year ended December 29, 2001)
     
5   Opinion of Drinker Biddle & Reath LLP (filed herewith)
     
10.1   (*) Employment Agreement of Mark Benadiba dated October 15, 2003 (filed herewith)
     
10.2   (*) Agreement effective July 18, 2003 amending the Employment Agreement between Cott Corporation and Paul R. Richardson dated August 23, 1999, as amended (filed herewith)
     
10.3   (*) Agreement effective July 18, 2003 amending the Employment Agreement between Cott Corporation and John K. Sheppard dated December 21, 2001 (filed herewith)
     
23.1   Consent of PricewaterhouseCoopers LLP (Independent Public Accountants of the Registrant) (filed herewith)
     
23.2   Consent of Drinker Biddle & Reath LLP (included in Exhibit 5)
     
24   Powers of Attorney (included on signature page)


(*)   Indicates a management contract or compensatory plan.

 

Exhibit 5

DRINKER BIDDLE & REATH LLP
ONE LOGAN SQUARE
18TH & CHERRY STREETS
PHILADELPHIA, PENNSYLVANIA 19103

January 22, 2004

Cott Corporation
207 Queen's Quay West
Suite 340
Toronto, Ontario M5J 1A7

Re: Registration Statement on Form S-3

Ladies and Gentlemen:

We have acted as counsel to Cott Corporation, a Canada corporation (the "Company"), in connection with the preparation and filing of a Registration Statement on Form S-3 (the "Registration Statement"), filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), and relating to the public offering from time to time of up to 2,268,383 common shares of the Company (the "Shares") by holders identified under the caption "Selling Security Holders" in the Prospectus included in the Registration Statement.

In all cases, we have assumed the legal capacity of each natural person signing any of the documents and corporate records examined by us, the genuineness of signatures, the authenticity of documents submitted as originals, the conformity to authentic original documents of documents submitted to us as copies, and the accuracy and completeness of all records and other information made available to us by the Company.

Insofar as the opinions below relate to the laws of Ontario and the laws of Canada applicable therein, we have relied upon the opinion of Goodmans LLP, dated the date hereof and addressed to us. We express no opinion concerning the laws of any jurisdiction other than the laws of Ontario and the laws of Canada applicable therein.

Based on the foregoing, and subject to the qualifications, limitations, and assumptions stated herein, in our opinion the issuance of the Shares by the Company has been validly authorized by all necessary corporate action on the part of the Company, and such Shares have been validly issued and are fully paid and nonassessable by the Company.


We hereby consent to the filing of this opinion as an exhibit to the Company's Registration Statement and to the use of our name under the caption "Legal Matters" in the Prospectus included within the Registration Statement. In giving this consent, we do not admit that we come within the categories of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Securities and Exchange Commission thereunder.

Very truly yours,

/s/ Drinker Biddle & Reath LLP

DRINKER BIDDLE & REATH LLP


Exhibit 10.1

COTT CORPORATION
207 QUEEN'S QUAY WEST
SUITE 340
TORONTO, ONTARIO
M5J 1A7

October 15, 2003

Mark Benadiba
25 Parkwood Avenue
Toronto, Ontario
M4V 2W9

Dear Mark:

RE: EMPLOYMENT AND RELATED ARRANGEMENTS - AMENDED AND RESTATED

This letter contains the terms and conditions upon which you have agreed to remain in the full-time employment of Cott Corporation ("Cott") as Executive Vice President. Currently you have responsibility for Cott Canada, Cott Asia, Cott Europe, Cott Mexico and Royal Crown International (RCI) and you report to the President and COO of Cott. This letter, once accepted by you, is intended to and shall constitute a binding legal agreement, enforceable by and against each of us in accordance with its terms.

1. BASE COMPENSATION. Your base salary shall be the annualized amount of $500,000. Your base salary shall be payable in the same manner and at the same intervals as the other senior officers of Cott. Provided that you remain in the full-time employment of Cott, your base salary will be reviewed in April of each year, and may be increased in respect of any such twelve month period by the CEO, with the advice and consent of the Human Resources and Compensation Committee of the Board. Base salary increases will be dependent, in general, upon a variety of factors, including rates of increase of other senior executive officers of Cott, rates of increase and salary levels of other executives in comparable North American industrial corporations, rates of inflation and other relevant criteria

2. BONUS COMPENSATION. You shall be entitled to an annual bonus of up to 100% of your base salary in respect of any fiscal year, payable within 30 days following the release by Cott of its year end results for such fiscal year. The bonus amount, if any, will be based on achievable and measurable criteria which we shall


mutually agree upon in April of each year. It is understood and agreed that we have agreed upon your bonus criteria in respect of 2003. If your employment terminates prior to the end of a fiscal year, any bonus earned in respect of that year shall be pro-rated accordingly. You are also entitled to participate in the Executive Incentive Share Compensation Plan.

3. EMPLOYEE BENEFITS AND PERQUISITES. You shall be entitled to any and all benefits and perquisites which are from time to time available to other senior officers of Cott, excluding the President & COO and the CEO

4. TERMINATION PAYMENTS(1).

(A) If at any time following the date of this letter agreement and prior to July 6, 2006 your employment is terminated by Cott without cause other than by reason of your death or if your position, title, duties, responsibilities and/or reporting is changed in any material respect, Cott shall pay you, within 30 days following the date of termination or change, as the case may be, an amount equal to the aggregate of (i) two times your base salary paid to you and two times the cash value of your benefits and perquisites during the most recently completed twelve calendar months prior to the date of termination and (ii) two times the greater of (A) your target base bonus at the date of termination and (B) $500,000.

(B) If at any time following the date of this letter agreement and prior to July 6, 2006 you voluntarily leave the employment of Cott other than for Good Reason, Cott shall pay you, within 30 days following your departure, an amount equal to the aggregate of (i) your base salary paid to you and the cash value of your benefits and perquisites during the most recently completed twelve calendar months prior to the end of such period and (ii) the greater of (A) your target base bonus at the date of termination and (B) $500,000.

If you receive any of the termination payments contemplated by this paragraph 4, you shall not otherwise be entitled to any other payments, compensation or damages whatsoever resulting from the termination of your employment

5. CAUSE. Whenever used in this letter, "cause" means:

(A) the willful and continued failure by you substantially to perform your duties with Cott (other than any such failure resulting from your incapacity due to physical or mental illness or any such actual or


(1) "The cash value of your benefits" contained in paragraph 4 of this Agreement is intended to mean the cash value of what it would have cost you to purchase benefits for yourself and your family (other than through a group plan) which are equal to those benefits provided for you and your family by Cott during the relevant period.

anticipated failure resulting from termination by you for Good Reason) after a written demand for substantial performance is delivered to you by the board of directors of Cott (the "Board"), which demand specifically identifies the manner the Board believes that you have not substantially performed your duties and you failed to correct such failure to perform your duties within 30 days after such written demand is delivered to you; or

(B) the willful engaging by you in conduct that is demonstrably and materially injurious to Cott, monetarily or otherwise, and no act or failure to act on your part shall be deemed "willful" unless done, or admitted to be done, by you not in good faith and without reasonable belief that your action or omission was in the best interests of Cott.

"Good Reason" shall mean the occurrence, without your express written consent, of any of the following:

(A) Inconsistent Duties - a meaningful and detrimental alteration in your position or in the nature or status of your responsibilities from those currently in effect;

(B) Reduction in Remuneration - a reduction by Cott in your annual base salary or a material adverse change in the methodology of determining whether a bonus is payable;

(C) Benefits and Perquisites - the failure by Cott to continue to provide you, in all material respects, with benefits and perquisites which are from time to time available to other senior officers of Cott, excluding the President & COO and the CEO; and

(D) Relocation - the relocation of the office of Cott where you are currently employed to a location that is more than 50 miles away from such location, or Cott requiring you to be based more than 50 miles away from such location (except for required travel on Cott's business to an extent substantially consistent with your customary business travel obligations in the ordinary course of business).

6. ENTIRE AGREEMENT. This agreement constitutes the entire agreement between you and Cott relative to the subject matter hereof, and supersedes and replaces the agreement dated October 7, 1997, as amended from time to time. However, all confidentiality undertakings signed by you prior to the date hereof shall continue in full force and effect in accordance with their terms.

7. GOVERNING LAW. The agreement resulting from your acceptance of this letter shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein. All dollar amounts used in this agreement are in lawful currency of Canada.


8. NOTICES. Wherever notice is required or desired to be given hereunder, it shall be deemed given when physically delivered to Cott (Attention: The Secretary) at its address on this letter (or at such other place as Cott may notify you from time to time) and if to you at your principal residence at the time of the giving of such notice.

9. In the event of termination Cott will pay for 5 months of professional out-placement services to a maximum of $50,000.00.

If the foregoing accurately sets forth the terms of our understanding relative to the subject matter hereof, please so signify by signing and returning to Colin Walker a duplicate original of this letter.

Yours very truly

COTT CORPORATION

                                                Per: /s/ John K. Sheppard
                                                     --------------------

                                                Per: /s/ Colin D. Walker
                                                     --------------------

ACCEPTED AND AGREED TO THIS
23rd day of October, 2003.

/s/Mark Benadiba
----------------
Mark Benadiba


Exhibit 10.2

June 20, 2003

PRIVATE AND CONFIDENTIAL: PAUL RICHARDSON

Dear Paul,

RE: CHANGE TO TERMS & CONDITIONS

Further to your discussions with myself I am pleased to be able to confirm to you in writing the following changes to your terms and conditions of employment.

JOB TITLE:       President - US Division

REPORTING TO:    John Sheppard - COO & President of Cott Corporation

SALARY:          $336,000

BONUS TARGET:    $375,000

BONUS LEVEL:     100% effective from 18th July 2003

PRORATED:        Jan 1st to July 18th 2003          Based on Corporate Results
                 July 18th to December 31st 2003    Based on:
                                                [ ] US Division Results OR
                                                [X] Corporate Results

LOCATION:        Tampa, FL

EFFECTIVE DATE:  July 18, 2003

This letter constitutes an amendment to your contract of employment and all other terms and conditions will remain as previously stated. I enclose two copies of this letter, which you should sign, returning one to me and retaining the other one for your reference.

Paul, I would like to take this opportunity to congratulate you and wish you every success in your new position. Please contact me if you have any queries with regard to the above.

Yours sincerely,
FOR COTT CORPORATION

/s/ Colin D. Walker
-------------------
Colin Walker
SVP, Corporate Resources

I accept the terms and conditions as outlined in the above letter.

NAME (PLEASE PRINT):    PAUL RICHARDSON
                        ---------------
SIGNED:                 /S/ PAUL RICHARDSON
                        -------------------
DATE:                   OCTOBER 16, 2003
                        ----------------


Exhibit 10.3

June 20, 2003

PRIVATE AND CONFIDENTIAL: JOHN SHEPPARD

Dear John,

RE: CHANGE TO TERMS & CONDITIONS

Further to your discussions with myself I am pleased to be able to confirm to you in writing the following changes to your terms and conditions of employment

JOB TITLE:      COO & President of Cott Corporation

REPORTING TO:   Frank E. Weise III - Chairman and Chief Executive Officer

SALARY:         Increased to $425,000 per annum

BONUS TARGET:   Increased to $475,000 effective from January 1, 2003

PRORATED: Jan 1st to July 18th 2003 Based on USA Division Results July 18th to December 31st 2003 Based on

                                         [ ] USA Divisional Results OR
                                         [X] Combined Division Operating Results

TERMINATION:    Two years perquisites and continuation of health and dental
                benefits coverage for a period of up to 2 years or when new
                employment is found.

LOCATION:       Toronto, ON

EFFECTIVE DATE: July 18, 2003

This letter constitutes an amendment to your contract of employment and all other terms and conditions will remain as previously stated. I enclose two copies of this letter, which you should sign, returning one to me and retaining the other one for your reference.

John, I would like to take this opportunity to congratulate you and wish you every success in your new position. Please contact me if you have any queries with regard to the above.

Yours sincerely,
FOR COTT CORPORATION

/s/ Colin Walker
Colin Walker
SVP, Corporate Resources

I accept the terms and conditions as outlined in the above letter.

NAME (PLEASE PRINT):   JOHN K. SHEPPARD
                       ----------------
SIGNED:                /S/ JOHN K. SHEPPARD
                       --------------------
DATE:                  10/23/03
                       --------


Exhibit 23.1

CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in this Registration Statement on Form S-3 filed by Cott Corporation of our report dated January 30, 2003, relating to the consolidated financial statements of Cott Corporation, which appears in Cott Corporation's Annual Report on Form 10-K for the year ended December 28, 2002. We also consent to the incorporation by reference in this Registration Statement of our report dated January 30, 2003, relating to the financial statement schedules of Cott Corporation, which is incorporated in the Annual Report on Form 10-K for the year ended December 28, 2002. We also consent to the reference to us under the heading "Experts" in this Registration Statement.

/s/ PricewaterhouseCoopers LLP

PRICEWATERHOUSECOOPERS LLP
Chartered Accountants
Toronto, Ontario, Canada
January 22, 2004

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