Primo Water Continues To Execute Well, but Core Product Leaves Little Room for Differentiation

Formerly known as Cott, Primo has cycled through multiple iterations over the past decade, going from a private-label manufacturer of ambient beverages (those that can be stored at room temperature) in 2010 to an all-things-water business in 2020. The current entity combines the heft of Cott’s former water subsidiaries with the legacy Primo business. Now that it is a pure-play water provider, we expect a more robust top-line trajectory and a structurally improved margin profile.