Else Nutrition Plans Canadian Market Relaunch in 2026

Rhea-AI Summary

Else Nutrition (OTC: BABYF) announced a planned relaunch of its Canadian business in early 2026 under a direct-to-retail model. The company said Canada previously exceeded CAD$1M revenue in 2023 but experienced declines in Q4 2024 and 1H 2025 due to out-of-stock and reduced marketing. Else terminated its distributor in July 2025, gained approval as a direct vendor with Canada's largest national retailer, and expects product back in stores in early 2026.

The company projects ~CAD$500,000 in Canadian revenue in the first year after relaunch and forecasts Canada reaching 10–15% of U.S. sales over time while expanding e-commerce and specialty channels.

AI-generated analysis. Not financial advice.

Positive

• Approved as a direct vendor with Canada's largest national retailer
• Projected CAD$500,000 initial-year Canadian revenue after relaunch
• Plan to expand Canadian e-commerce via Amazon and DTC platform
• Direct distribution model aimed at higher margins and commercial control

Negative

• Canadian revenue declined after 2023 despite surpassing CAD$1M
• Distributor relationship terminated in July 2025, causing channel disruption
• Projected initial-year revenue (~CAD$500k) is ~50% below 2023 Canadian revenue

Strategic Re-Entry Expected to Generate CAD$500,000 in Initial-Year Revenue

VANCOUVER, BC, Jan. 7, 2026 /PRNewswire/ - ELSE NUTRITION HOLDINGS INC. (BABY) (BABYF) (0YL0) ("Else" or the "Company"), a pioneer in wholefood, Plant-Based nutrition for babies, toddlers, children and adults, today announced plans to relaunch its Canadian business in early 2026 as part of its broader growth and margin optimization strategy. 

Else initially entered the Canadian market in mid-2022 through a local distribution partner. The launch gained rapid traction, with Canadian revenues surpassing CAD$1 million in 2023, supported by distribution across most major national retail chains.

During Q4 2024 and the first half of 2025, Canadian revenues declined due to temporary out-of-stock conditions and reduced marketing investment. In July 2025, the distributor relationship was terminated and the Company decided to transition to a direct distribution model, that offers higher margins and better commercial control. 

As part of this strategy, Else initiated direct engagement with Canada's largest national retailer in Q3 2025. The Company has since been approved as a direct vendor, with product distribution expected to resume in stores in early 2026.

In parallel, Else is advancing discussions to re-establish relationships with additional national retailers, onboard new retail partners, and appoint a local distributor to support specialty and independent retail channels. The Company also plans to expand its Canadian e-commerce presence through Amazon, its direct-to-consumer platform, and additional online marketplaces.

The Company expects Canadian operations to generate approximately CAD$500,000 in revenue in the first year following relaunch, with Canada projected to represent 10–15% of U.S. sales over time, reflecting its importance as a core growth market.

"We have always viewed Canada as a strategically important market," said Hamutal Yitzhak, CEO and Co-Founder of Else Nutrition. "Our return to Canada under a direct-to-retail model positions us for more sustainable growth, improved margins, and stronger execution. This relaunch aligns with our broader expectation of accelerating revenue growth beginning in 2026."

To delve deeper into Else Nutrition's offerings and its revolutionary approach to nutrition, visit www.elsenutrition.com

About Else Nutrition Holdings Inc.

Else Nutrition Holdings Inc. (TSX: BABY, OTCQX: BABYF, FSE: 0YL) is a food and nutrition company in the international expansion stage focused on developing innovative, clean, and Plant-Based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, Plant-Based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat, and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.

Awards and Recognition:

• "2017 Best Health and Diet Solutions" award at Milan's Global Food Innovation Summit
  
  
  
• #1 Best Seller on Amazon in the Fall of 2020 in the New Baby & Toddler Formula Category
  
  
  
• "Best Dairy Alternative" Award 2021 at World Plant-Based Expo
  
  
  
• Nexty Award Finalist at Expo West 2022 in the Plant-Based lifestyle category
  
  
  
• During September 2022, Else Super Cereal reached the #1 Best Seller in Baby Cereal across all brands on Amazon

TSX

Neither the TSX nor its regulation services provider (as that term is defined in the policies of the TSX) accept responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "will" or similar expressions. Forward-looking statements in this press release include statements with respect to the anticipated dates for filing the company's financial disclosure documents. Such forward-looking statements reflect current estimates, beliefs, and assumptions, which are based on management's perception of current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. No assurance can be given that the foregoing will prove to be correct. Forward-looking statements made in this press release assume, among others, the expectation that there will be no interruptions or supply chain failures as a result of COVID-19 and that the manufacturing, broker, and supply logistic agreement with the company does not terminate. Actual results may differ from the estimates, beliefs, and assumptions expressed or implied in the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect management's expectations only as of the date of this press release. The company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

FAQ

What is Else Nutrition announcing for Canada in early 2026 (BABYF)?

Else plans a Canadian relaunch under a direct-to-retail model with product distribution resuming in early 2026.

How much Canadian revenue does Else Nutrition expect after the relaunch (BABYF)?

The company expects approximately CAD$500,000 in Canadian revenue in the first year following relaunch.

Why did Else Nutrition pause Canadian operations before the 2026 relaunch (BABYF)?

Canadian revenues fell in Q4 2024 and 1H 2025 due to temporary out-of-stock conditions and reduced marketing, and the distributor relationship ended in July 2025.

Will Else Nutrition sell on Canadian e-commerce channels after relaunch (BABYF)?

Yes; the company plans to expand e-commerce via Amazon, its DTC platform, and additional online marketplaces.

What long-term role does Canada play in Else Nutrition's strategy (BABYF)?

Else views Canada as a core growth market and projects it will represent 10–15% of U.S. sales over time.