COTT IS SPLITTING NORTH AMERICAN OPERATIONS

BRIAN DUNN

TORONTO (FNS) -- Cott Corp. here, the world's largest bottler of private-label soft drinks, is splitting its North American operations into U.S. and Canadian divisions.

Cott has also canceled its quarterly dividend following a 21% drop in its second-quarter profit. The company said that from now on, dividends will be re-invested in the business.

Cott's U.S. headquarters will be in Tampa, Fla., while Canadian operations will remain here, which previously had overseen both U.S. and Canadian operations. Each unit will have its own sales and marketing, product-development, production, distribution and creative services.

The company has also hired David Bluestein as president of U.S. operations, while Mark Benadiba, co-chief operating officer of Cott North America, will become president of Canadian operations. Bluestein was most recently president of IFF Flavors, a division of International Flavors & Fragrances, New York.

The changes will result in a much more customer-focused business, according to Frank Weise, a former Campbell Soup executive who was appointed chief executive officer of Cott in June, following the death of Cott founder Gerald Pencer. He said the reorganization is a commitment to grow rapidly with Cott's retail partners.

Earlier this year, Thomas H. Lee Co., a Boston-based investment firm, became Cott's largest single shareholder when it purchased the Pencer family's 30% share of the company. More than 75% of Cott's business is generated in the United States and Canada, with some operations in the United Kingdom.