Cott up on restructuring, focus on private label

Shares jumped 21 cents, or 8.4 percent, to $2.72 in morning trading. The stock has ranged from $1.76 to $16.12 over the past year.

Cott Interim Chief Executive David Gibbons said the company has devoted too much energy and resources toward branded initiatives and away from its core retail customers during the last 18 months.

"Our role is not to invent new categories," Gibbons said. "Our role is to be 'fast followers' to leverage the growth of expanding categories and to improve profitability for our retail partners at lower prices to consumers."

He said the company's retail partners will drive its new product development.

The company said the changes stem from an "intensive" 60-day evaluation of the business that started in March when Gibbons took over the post from Brent Willis, who resigned.

Cott also said Thursday it will combine some executive positions and eliminate some other positions throughout the company. Both the president of the North American business unit and the chief people officer will leave the company.

Cott estimated that total severance costs will be about $6 million to $8 million. The company expects to save between $39 million and $43 million annually from the changes. It said it expects to realize more than $10 million of those savings in the second half of the year.

The company also said it expanded the size of its board of directors to 11 members from 10 to include four new directors. Three directors--Frank Weise, Don Watt and Serge Gouin--have agreed to resign.

The new board members are Eric Rosenfeld, Greg Monahan, Mark Benadiba and Mario Pilozzi.