Bottled water and beverage distribution giant Cott Corporation has announced it is exploring the sale of S&D Coffee & Tea, one of the largest full-service coffee roasting companies in the United States.
Cott, which is based jointly in Mississauga, Ontario, and Tampa, Florida, acquired S&D for approximately $355 million back in August 2016. The now 92-year-old coffee and tea company, based in Concord, North Carolina, had for decades been owned by the Davis family.
S&D has been a leading player in the office, convenience store and foodservice categories, while also offering a full suite of private-label coffee roasting, distribution and tea and other liquid extracts services. Over the past decade, the company has been notably active in volunteerism with the Specialty Coffee Association, routinely offering market research or sustainability insights through seminars, and, most recently, sponsoring the Leadership Equity and Diversity (LEAD) scholarship program.
In a brief press release today, Cott announced it is exploring the sale of S&D with the possible intent to focus exclusively on the water category.
“Cott has engaged a financial advisor as part of its strategic planning process to assist it in evaluating whether there are alternatives available to Cott’s Coffee, Tea and Extract Solutions operating segment that would either complement its strategy of organic growth or otherwise enhance shareholder value,” the company stated. “There can be no assurance that any particular alternative will be pursued. Cott does not propose to comment further on these matters unless disclosure thereof is warranted.”