Canada-based private label beverage manufacturer Cott Corporation has confirmed it is considering ‘strategic alternatives’ for its S&D Coffee and Tea division.

S&D is a US-based company engaged in custom coffee roasting and blends iced teas at foodservice and convenience stores.

In addition to coffee and tea beverages, S&D Coffee offerings also include infused drinks, juices, syrups and cappuccinos.

The company claims that all its products are made with the highest quality and standards.

Its products are sold and distributed to foodservice and convenience stores across the US.

The decision is said to be part of the company’s strategic planning process of transitioning into a pure-play water solutions provider.

As part of the initiative, the company has appointed a financial advisor to assess whether there are alternatives available to Cott’s Coffee, Tea and Extract Solutions operating segment.

The advisor would help the company to identify whether the decision would complement its strategy of organic growth or otherwise enhance shareholder value.

As of now, there is no assurance that the company would be executing a particular alternative.

In August 2016, Cott signed a definitive purchase agreement to acquire S&D Coffee, a coffee roaster and provider of customised coffee, tea and extract solutions to the foodservice, hospitality and office segments in the US.

Cott agreed to purchase S&D Coffee for approximately $355m, on a debt and cash-free basis.

The acquisition will broaden the distribution platform of Cott’s existing DS Services coffee business in the US by adding in-house roasting, grinding and blending capabilities alongside a national distribution system.