Jefferies Consumer Conference June 20, 2017...S&D has approximately 20% share of the growing...

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Jefferies Consumer Conference June 20, 2017

Transcript of Jefferies Consumer Conference June 20, 2017...S&D has approximately 20% share of the growing...

Page 1: Jefferies Consumer Conference June 20, 2017...S&D has approximately 20% share of the growing foodservice channel and is the largest supplier of fresh-brewed iced tea to the U.S. foodservice

JefferiesConsumerConferenceJune20,2017

Page 2: Jefferies Consumer Conference June 20, 2017...S&D has approximately 20% share of the growing foodservice channel and is the largest supplier of fresh-brewed iced tea to the U.S. foodservice

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ForwardLookingStatements:Thispresentationcontainsforward-lookingstatementswithinthemeaningofSection27AoftheSecuritiesActof1933,Section21EoftheSecuritiesExchangeActof1934andapplicableCanadiansecuritieslawsconveyingmanagement'sexpectationsastothefuturebasedonplans,estimatesandprojectionsatthetimetheCompanymakesthestatements.Forward-lookingstatementsinvolveinherentrisksanduncertaintiesandtheCompanycautionsyouthatanumberofimportantfactorscouldcauseactualresultstodiffermateriallyfromthosecontainedinanysuchforward-lookingstatement.Theforward-lookingstatementscontainedinthispresentationinclude,butarenotlimitedto,statementsrelatedtoexpectedfutureoperatingresultsoftheCompany,anticipatedmarkettrends,andtheexecutionoftheCompany’sstrategy.Theforward-lookingstatementsarebasedonassumptionsregardingmanagement'scurrentplansandestimates.Managementbelievestheseassumptionstobereasonablebutthereisnoassurancethattheywillprovetobeaccurate.Factorsthatcouldcauseactualresultstodiffermateriallyfromthosedescribedinthispresentationinclude,amongothers:(1)changesinestimatesoffutureearnings;(2)expectedsynergiesandcostsavingsarenotachievedorachievedataslower pacethanexpected;(3)integrationproblems,delaysorotherrelatedcosts;and(4)unanticipatedchangesinlaws,regulations,orotherindustrystandardsaffectingthecompanies.Theforegoinglistoffactorsisnotexhaustive.Readersarecautionednottoplaceunduerelianceontheseforward-lookingstatements,whichspeakonlyasofthedatehereof.Readersareurgedtocarefullyreviewandconsiderthe variousdisclosures,includingbutnotlimitedtoriskfactorscontainedintheCompany'sAnnualReportintheForm10-KfortheyearendedDecember31,2016.TheCompanydoesnot,exceptasexpresslyrequiredbyapplicablelaw,undertaketoupdateorreviseanyofthesestatementsinlightofnewinformationorfutureevents.

Non-GAAPMeasures:TheCompanyroutinelysupplementsitsreportingofGAAPmeasuresbyutilizingcertainnon-GAAPmeasurestoseparatetheimpactofcertainitemsfromitsunderlyingbusinessresults.Inthispresentation,weusenon-GAAPmeasuressuchasEBITDA,adjustedEBITDA,andadjustedfreecashflowandcertainratiosusingthesemeasures.SincetheCompanyusesthesenon-GAAPmeasuresinthemanagementofitsbusiness,managementbelievesthissupplementalinformation,includingonaproformabasis,isusefultoinvestorsfortheirindependentevaluationandunderstandingofthebusiness.Anynon-GAAPfinancialmeasuresusedbytheCompanyareinadditionto,andnotmeanttobeconsideredsuperiorto,orasubstitutefor,theCompany'sfinancialstatementspreparedinaccordancewithGAAP.Inaddition,thenon-GAAPfinancialmeasuresincludedinthispresentationreflectmanagement'sjudgmentofparticularitems,andmaybedifferentfrom,andthereforemaynotbecomparableto,similarlytitledmeasuresreportedbyothercompanies.Areconciliationofthesenon-GAAPmeasuresmaybefoundonwww.cott.com.

SafeHarborStatements

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ManagementAttendees

2

JarrodLanghansVicePresidentInvestorRelations

JerryHoyleChiefFinancialOfficer– CottDSServicesDivision

TracyGingChiefCommercialOfficer– CottS&DCoffeeandTeaDivision

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ADiversifiedBeverageCompanyFocusedonBetter-For-YouProductsandBroadChannelPenetration

TheCompanyoperatesthroughtwomajorbusinesssegments:

§ WaterandCoffeeSolutions(“WCS”)Platform: providesbottledwater,coffee,teaandwaterfiltrationservicestocustomersacross20countries.SegmentincludesDSServices,Aquaterra,EdenSpringsandS&Dbusinesslines

§ Growingproductsandchannelsassociatedwith“Better-for-You”beveragesincludingleading,scaleplatformsinhomeandofficewaterdelivery,coffee,teaandfiltrationserviceswithinNorthAmericaandEurope

§ LargecategorieswithlowsingledigitgrowthacrossHODWater,CustomCoffeeRoastingandTeaBlending

§ Over2.3millioncustomersprovidingadiversecustomerbase

§ TraditionalCott: producesbeveragesonbehalfofretailers,brandownersanddistributors.FocusoncashgenerationandcashextractiontogrowourWCSplatformanddeleverage.

§ Volumestabilitythroughvalue-addedandsparklingwaterproductcategorygrowthandgrowingcontractmanufacturingchanneloffsettingsugarsweetenedbeverage(“SSB”)(CarbonatedSoftDrinks“CSDs”andShelfStableJuices“SSJs”)marketdeclines

§ Customerbaseincludestheworld’sleadingbrandownersandretailersinthegrocery,mass-merchandiseanddrugstorechannels___________________________

Note:FinancialsbasedonFY2016.Source:Companyinformation,Managementestimates.Terms:HomeandOfficeDelivery(“HOD”).Otherproductcategoryincludesconcentrates,filtrationservicesandother.Sparklingwatersincludesmixers.(1)2016ProformaAdjustedEBITDAallocatedbaseduponpro-rata2016revenuesbyproductcategoryandchannelbetweenDSServices(HODWater,OCS,WaterandOther),TraditionalCott(CSD,Juice/JuiceDrinks,SparklingWatersandOther),Eden(HODWater,OCS,WaterandOther)andS&D(Coffee&Tea).(2)Corporatecostsallocatedbaseduponmanagementestimates

1

2

ProForma2016(1)AdjustedEBITDA

CSD11%

Juice/Juice Drinks

8%

Sparkling Water8%

HOD Water34%

Water, 8%

Coffee & Tea, 18%

Other, 13%

Private Label Retail27%

Branded Retail10%

HOD Water34%

Foodservice5%

Convenience Retailing

2%

Distribution4%

OCS5%

Contract Packaging7%

Other6%

Product(1)

Channel(1)

Cottisaleadingproviderinthedirect-to-consumerbeverageservicesindustrywith2017projectedsalesofover$3.7billionandstrongfreecashflowgrowth.

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1• 2%to3%OrganicGrowthWithinOurWaterandCoffeeSolutionsSegment

2• AccretiveSmallHODWater,OCSandFiltrationTuck-InAcquisitionsinNorthAmericaandEurope

3• SynergyCaptureandIntegrationWithinOurWaterandCoffeeSolutionsBusinesses

4• MaintainFreeCashFlowGenerationandOptimizeCashExtractionFromOurTraditionalBusiness

5• StrengtheningBalanceSheetThroughStrongCompoundFreeCashFlowGrowth,InterestReduction,andDeleveraging

Cott’s Vision– ToBecometheLeadingNorthAmericanandEuropeanWater,Coffee,TeaandFiltrationServiceProviderWithinHomeandOfficeDelivery,Foodservice,ConvenienceandHospitality

VisionDrivesShareholderValueCreationVia:LeadingNorthAmericanandEuropeanWater,Coffee,TeaandFiltrationServiceProvider

WithHigherMarginsandCompoundGrowthinRevenueandFreeCashFlow

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StrategicInitiativesDriveDiversification

Diversifiedbeverageplatform(lowproduct,channelandcustomerconcentration)

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2

3

4

5

“Better-for-You”productofferings(positionedingrowingcategoriesofwater,coffee,tea,filtrationandextracts)

LeadingHomeOfficeWaterDelivery,CoffeeRoasting,TeaBlendingandOfficeCoffeeServiceplatforms(multipleaccretivetuck-inopportunities)

Recentscaleacquisitions(meaningfulsynergies/costsavingsopportunitieswithlongertermcrosssellingopportunities)

Strongfreecashflowgenerationandde-leveraging(midteencompoundannualgrowthinadjustedfreecashflow)

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DiversifiedBeveragePlatformWithLowProduct,ChannelandCustomerConcentrationIncreasinglyFocusedonGrowingCategoriesofWater,Coffee,TeaandFiltration

Private label & branded

retail76%

Co-pack15%

Other9%

Prod

ucts

Cha

nnel

sB

ette

r For

You

Better For You68%

Other32%

Pro Forma Adj EBITDA 2016(2)Adj EBITDA 2008(1) Adj EBITDA 2014(1)

CSD11% Juice

8% Sparkling

waters8%

HOD Water34%

Water8%

Coffee & Tea18%

Other13%

Better For You19%

Other81%

CSD34%

Juice24%

Sparkling water19%

Other23%

Private label retail73%

Branded retail14%

Co-pack11%

Other2%

Better For You11%

Other89%

Private label retail27%

HOD Water34%

Branded retail10%

Co-pack7%

Foodservice5%

Other17%

(1) Cott Traditional 2008 and 2014 adjusted EBITDA allocated based upon pro-rata revenues by product category and channel. (2) 2016 pro forma adjusted EBITDA allocated based upon pro-rata 2016 pro forma revenues by product category and channel between DS Services (HOD Water, OCS, Water & Other), Traditional Cott (CSD,

Juice, Sparkling Water and Other), Eden (HOD Water, OCS, Water and Other) and S&D (Coffee & Tea).(3) Other products include concentrates, Eden Springs’s filtration services and other.(4) Other channels include office coffee services, distribution, convenience retailing and other. (5) Better For You platform includes HOD Water, OCS, Coffee & Tea, Water and Sparkling Waters / Mixers

(4)

CSD52%

Water11%

Other37%

(3)

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Ourstrategicshifttohighermargin/growthmarkets- “Better-For-You”ProductOfferingPositionedAgainstGrowthCategories

Water filtrationmarket

Out of home coffee market(1)

Hospitality tea market(2)

HOD watermarket

Source: Beverage Marketing Corporation, The Automatic Merchandiser, October 2014 EY Analysis, Mintel Group Ltd.(1) Includes roasted, single-cup, instant, ready-to-drink and cold-brew, and refrigerated cold-brew / concentrate U.S. coffee retail sales at current prices; projections exclude

refrigerated cold-brew / concentrate coffee retail sales. Excludes wholesale revenue.(2) Includes canned / bottled, refrigerated, bagged / loose leaf, and single-cup U.S. tea sales at current prices. Excludes wholesale revenue.

Building Attractive Platform…with potential to build multiple leadership

positions

Acquired Dec 2014 Acquired Jan 2016

Acquired Aug 2016 Acquired Aug 2016

≈ 3%

≈ 4%

≈ 7%

≈ 4%

’13-’17E CAGR

2

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Eden geographic presence

BWC water position(3)

Eden4%

Other89%

Eden20%

Company A

3%Company

B3%

Next 513%

Other61%

Company A6%

DS Services

~31%

Nestle~30%

Smaller Competitor

s~39%

DS Services~3%

Remainder of Top 5~17%

Smaller Competitors

~80%

DSServices– U.S.MarketLeader

HOD Water(1) OCS(2)

EdenSprings– EuropeanMarketLeader

HOD Water OCS

S&Dhasapproximately20%shareofthegrowingfoodservicechannelandisthelargestsupplieroffresh-brewedicedteatotheU.S.foodserviceindustry.

S&DCoffeeandTea– U.S.Leader Aquaterra– CanadianMarketLeader

AquaterraisCanada’soldestandlargestHODWaterbusinesswithaleadingpositionandover70,000customers.

___________________________Note: 2015 market shares based on management estimates.(1) Source: Beverage Marketing Corporation. Category size of $1.7 billion reflects only bottled water and excludes items such as cooler rent, cups, etc.(2) Source: ‘Coffee sales rise, so do costs: State of the Coffee Service Industry’, Automatic Merchandiser, September 2015.Source: Company information, Management estimates(3) BWC represents total bottled water coolers but is not a market in and of itself as the HOD water business consists of coolers, bottled water as well as other products such as case pack water and single serve products

WaterandCoffeesolutions– LeadingHODwater,coffee,teaandfiltrationservicesprovideracross20countrieswithmultipleaccretivetuck-inopportunities

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StrategicRationale

CostSynergies

§ Scalesbusinessandmeaningfullyenhancesmarginprofile

§ Diversifiesproductmixandimprovesgrowth

§ Broadenschannelmix

§ Meaningfulsynergiesandnewrevenueopportunitiesgeneratedfromnewchannelandnewroutestomarket

§ Expectedtogenerate$25mmofsynergiesover3years

§ $21mmof$25mmrealizedto-date

§ Expectedtoachieverun-ratesynergiesbytheendofFY2017

§ Improvesproductandchannelmix,whilereducingexposureto“BigBox”retailandinputcosts

§ CreatesaninternationalHODplatformwithleadingmarketshareacrossallregions,withsignificantconsolidationopportunities

§ Increasesscale,marginandgrowthprofile

§ Providesscaledgrowingcoffeeandteaproductionanddeliveryplatform

§ FurthersCott’splatformdiversificationstrategyacrossmultipleproductsandchannels

§ Significantsynergieswithexistingcoffeebusiness

___________________________(1) EdenSpringssynergiesconvertedfromEURtoUSDusing1.102Source:Companyinformation,Managementestimates

RecentAcquisitionsProvideMeaningfulCostSavingsOpportunities

($ in millions)

§ EdenSpringsandS&DCoffeeacquisitionsareexpectedtogeneratetotalcostsynergiesof$23mm(1) by2020

$4

$12

$21 $23

2017 2018 2019 2020

4

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$155 -$175

$225 -$275

2017E 2019E

StrongFreeCashFlowGenerationandCompoundAnnualGrowthinAdjustedFreeCashFlowSupportsRapidDe-Leveraging

Full-yearimpactandassociatedfreecashflowfromEdenSpringsandS&DCoffee&Tea

R

~$23mmofsynergygenerationfromEdenSpringsandS&DCoffee&Teaasthesebusinessesbecomefullyintegrated

R

Maintainfreecashflowgenerationandoptimizecashextractionfromourtraditionalbusiness

R

Organicgrowthof2%to3%fromourWater,Coffee&Teaservicebusinesses

R

Continuetoexecute-onhighlyaccretive,synergisticanddeleveragingtuck-inacquisitionsintheHODwater,officecoffeeandfiltrationindustries

R

Opportunisticallyrefinancehighcoupondebtatlowerratesandbettertermsin2017,subjecttomarketconditions

R___________________________(1) Adjustedfreecashflowcalculatedascashflowfromoperations(excludingacquisition,integrationandtransactioncosts)lesscapitalexpenditures(2) SeeappendixforadjustedfreecashflowreconciliationSource: Companyinformation

($ in millions)

AdjustedFreeCashFlow(1)

FreeCashFlowDriversAdjustedFreeCashFlow(1)(2)

($ in millions)

5

$107

$134$150

$155 - $175

2014 2015 2016 2017E

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High 4x(1)

~3.0x

PF2016 2017E 2018E 2019E Long-term net leverage target

(1) Pro Forma Leverage subsequent to closing Eden Springs and S&D Coffee and Tea in August 2016. See modeling deck presented August 17, 2016.Source: Company information

§ Proven track-record of quickly deleveraging after acquisitions

§ Significant free cash flow conversion allows for accelerated deleveraging

§ Additional deleveraging through cash extraction from traditional business (e.g. sale leasebacks, tight capital

control, various monetization options)

§ Capital deployment strategy assessed upon reaching 3x range

StrongFreeCashFlowGenerationandCompoundAnnualGrowthinAdjustedFreeCashFlowSupportsRapidDe-Leveraging-Continued

Pro Forma Net Debt to Adj. EBITDA

5

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ValueCreation

§ Highlydiversifiedproduct,packageandchannelmix.

§ Strongandgrowingadjustedfreecashflowthatdrivesreturnstoshareholdersthroughamorebalancedscale

businesswithagoalof$225plusmillioninadjustedfreecashflowbytheendof2019.

§ Rapiddeleveragingresultsintransferofvaluefromdebttoequityholders.

ShareholderValueCreationVia:LeadingNorthAmericanandEuropeanWater,Coffee,TeaandFiltrationServiceProviderWithHigherMargins

andCompoundGrowthinRevenueandFreeCashFlow

Note:Adjustedfreecashflowyielddefined ascashflowfromoperationslesscapitalexpenditures/marketcapitalization.MarketdataasofDecember31,2016(Cott shareprice:$11.33).(a) Highcashflowconsumerpeer group includesB&GFoods,Campbell, PinnacleFoods,PostHoldings,JMSmucker,Snyder’s-Lance,SpectrumBrandsandTreeHouse Foods(b) BottlerspeergroupincludesNationalBeverage,A.G.Barr,Britvic,Coca-ColaAmatil,Coca-ColaEuropeanPartnersandCoca-ColaFemsa(c) RoutebaseservicespeergroupincludesG&KServices,Unifirst,ABMIndustries,Chemed,ServiceMaster,CintasandAramarkSource:Companyfilings,Factset

FREECASHFLOWYIELD

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Questions and Answers

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Appendix

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Cott'sDiversifiedBusinessPlatform

___________________________(1) Eden Springs figures translated using EUR to USD FX rate of 1.102(2) See appendix for reconciliation of Eden Springs and S&D Coffee reported to pro forma net revenueSource: Company information

Water and Coffee Services Traditional

DS Services(incl. Aquaterra) Eden Springs S&D Coffee

Description

§ Direct-to-consumer providers of HOD water and filtration services across the U.S. (DS Services), Europe (Eden Springs) and Canada (Aquaterra)

§ Provides access and leadership position in the growing HOD water and filtration services industry

§ Leading custom coffee roaster and services company in the U.S. that provides vertical integration benefits

§ Improves overall growth profile by providing access to new customers, channels and growing categories

§ Provides a leadership position within the growing “On-the-Go” coffee category

§ Leading SSJ, CSD, and sparkling water / mixer manufacturer and distributor with a focus on private label and contract manufacturing

§ Customers include leading grocers, drug stores, mass-merchandisers and global brand owners

§ High cash flow generation through 4C’s (strong customer relationships, low operating costs, rigorous capexmanagement and strong free cash flow)

§ Cash generation and extraction used for Water and Coffee Solutions growth and deleveraging

2016 Pro Forma Net Revenue § $1,067mm § $389mm(1)(2) § $558mm(2) § $1,784mm

Footprint

§ Largest or second-largest HOD water provider in 39 of 43 largest U.S. cities and market leader in Canada

§ Leading European market player across 18 countries via the Eden Springs platform

§ Strong platform for accretive tuck-ins across geographies in both North America and Europe at attractive multiples

§ 37 plants and 15 water sources in the U.S. and Canada

§ 27 water sources across 18 countries in Europe (~1/3 owned)

§ Four production facilities: two dedicated coffee facilities, one tea facility and one extract and ingredient facility

§ Production space: 625,000 ft.2 with the ability to add multiple roasters over the coming years as necessary

§ Capable of producing 130-150 million pounds of coffee and 40-50 million pounds of tea annually

§ Since 2010, S&D has invested over $50mm to expand and upgrade its production facilities

§ Global manufacturing footprint with over 30 facilities in the U.S., Canada, UK and Mexico

§ High service levels and low freight costs§ Fully integrated concentrate facility with

strong R&D capabilities and vertical integration

§ Customer relationships with over 500 leading retailers and global brand owners

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Water Delivery Services

64%OCS11%

Retail15%

Other / Filtration Services10%

DSServices(IncludingAquaterra)AleadingUSDirect-to-ConsumerServicesProviderAcrossHODWater,OfficeCoffeeandFiltrationServices

___________________________(1) Figuresrepresentregionalmarketshare(2) Marketsharebasedonconsumptionvolume(3) OthernetrevenueincludedinFiltrationServicesnetrevenue(4) IncludesAquaterranetrevenueof$61mmSource:Companyinformation

Overview GeographicCoverageandBrandOwnership(1)

NetRevenueContributionProducts&Services

WaterDeliveryServices

OfficeCoffeeServices(“OCS”)

Retail

Filtration Services

$681mm

$118mm

$165mm

$104mm

2016NetRevenue(4):$1,067mm

%ofWCS:53%%ofTotalCott:28%

(3)

§ Leadingbottledwater,includingmanywell-knownbrands,andcoffeedirect-to-consumerservicesproviderto~1.6mmcustomerslocationsthroughdailyoperationof>2,000routesthatcover~90%oftheUS

§ 37plants§ NationalDSD(direct-store-delivery)system§ Vastcustomerbaseofhomesandsmalloffice

§ IncludesAquaterra,thelargestCanadiandistributorofHODwaterincludingwell-knownbrandssuchasLabradorSource andCanadianSpringsto~70,000customers

§ Leadingmarketshare(~31%)inthe2015U.S.HODbottledwatercategory(2)

1

1

1

1

11

1 2

1

11 3

2

1

1 2

2

1

3

11

1

111

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Water Services63%Office Coffee

Services19%

Retail12%

Filtration6%

___________________________(1) BWCrepresentstotalbottledwatercoolersbutisnotamarketinandofitselfastheHODwaterbusinessconsistsofcoolers,bottledwateraswellasotherproductssuchascasepackwaterandsingleserveproducts(2) MarketsharebasedonconsumptionvolumeSource:Companyinformation

Overview GeographicCoverage

NetRevenueContributionProducts&Services

WaterServices

OfficeCoffeeServices

Filtration

Retail

€224mm

2016NetRevenue:€353mm

%ofWCS:19%%ofTotalCott:10%

§ Europe’slargestofficewaterandofficecoffeeservicescompanywithoperationsacross18countriesand~800,000customers

§ MeaningfulscaleacrossEuropewithaccesstoattractiveend-marketswithpositivegrowthoutlook(AleadingEuropeanplayerwithmultiplevalue-creativetuck-inacquisitionopportunities)

§ Expandsdirect-to-consumerbusiness– High-qualityandloyalcustomerbase(CombinationofDSServices,AquaterraandEdenSpringshas>2milliondirecttocustomerdeliverypoints)

EdenSpringsEurope’sLeadingDirect-to-Consumer(HomeandOffice)WaterandOfficeCoffeeServicesProvider

€22mm

€41mm

€66mm

Eden Springs geographic presence

BWC water position(1)

31

1

1

1

1

1 2 2

2

2

112

1

22

2

Portugal Spain

France Switzerland

Germany

UK NetherlandsDenmark

Norway

Sweden

FinlandEstoniaLatvia

Lithuania

Russia

Israel

Poland

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QSR & Restaurants48%

Convenience Retailing

19%

Distribution32%

Other1%

___________________________(1) Market share based on consumption volumeSource: Company information

Overview GeographicCoverage

NetRevenueContributionProducts&Services

Coffee

Tea

Specialtyextracts&Ingredients(e.g.ColdBrewCoffee)

$269mm

$104mm

$181mm

$5mm

2016NetRevenue:$558mm

%ofWCS:28%%ofTotalCott:15%

§ Oneofthelargestcustomcoffeeroastersanddistributorofcoffeeandtea-basedbeveragesolutionstotheU.S.foodserviceindustry

§ Fourfacilitiescontaindedicatedcoffeeandteamanufacturingcapabilities,extractandingredienttechnology,andover625,000totalsquarefeetofwarehousespace

§ Servesover24,000blue-chipcustomersmainlyinthefoodserviceindustry,anddeliverstoover102,000customerlocationsacrossU.S.

S&DCoffeeandTeaLeadingU.S.FoodserviceCoffee,TeaManufacturingandServicesCompany

DirectRoute&Third-PartyDistributionThird-PartyDistribution

3rd PartyDistributionsalesaccountedfor~80%oftotal

2015netrevenue

AttractiveSynergyandDistributionOpportunitywithDSServicesOCSBusiness

Directroutesalesaccountedfor~20%of2015netrevenue

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CSD31%

Juice / Juice Drinks22%

Sparkling Waters / Mixers23%

Other24%

___________________________Source:Companyinformation

Overview&StrategicRationale GeographicCoverage

NetRevenueContributionProducts&Services

CSDs

Juice/Juice Drinks

SparklingWaters/Mixers

Other

$559mm

2016NetRevenue:$1,784mm

%Better-for-You:22%%ofTotalCott:47%

§ Industry-leadingbeveragemanufactureranddistributorfocusedonprivatelabel,contractmanufacturingandownbrands

§ Leaderinprivatelabelshelfstablejuices,CSDsandvalue-addedandsparklingwaterinNorthAmericawithagrowingcontractmanufacturingbusiness

§ FullyintegratedconcentratefacilitywithstrongR&Dcapabilitiesandverticalintegrationwithhighservice,low-costproductionmodelsupplyingqualityconcentratesandexportstocustomersoutsideofNorthAmerica

§ Customerrelationshipswithover500leadingretailersinthegrocery,mass-merchandiseanddrugstorechannelsandbandowners

$392mm$401mm

$432mm

TraditionalBusinessLeadingBeveragePlatformWithExtensiveManufacturingFootprintforPrivateLabel,ContractManufacturingandOwnBrands

532904_1.WOR(NY007LA7)

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Mexico

ThestrongFCFfromtheTraditionalBusinessenablesustodeleverquicklyandinvestinourgrowing“WCS”platform