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In the first quarter of 1993, Coca-Cola''s share of mass-merchandise soft-drink sales fell 6.6 percent, while private-label soft drinks'' shares in the same channel rose 16.8 percent. Much of this increase reflected the success of the Cott Corporation, which had achieved a 10 percent share in the mass-merchandise channel by selling private-label and store-brand soft drinks to Wal-Mart and other U.S. retailers. In a March 1993 interview, Cott CEO Gerald Pencer stated: ''We make a product that is at least as good as, if not better than, Coke or Pepsi''. He expected Cott''s sales to double in the next year. Coca-Cola executives must decide how to respond to Cott''s initiatives.