Flow Beverage Corp. Signs 45 Million Unit Co-Pack Agreement with Joyburst

Rhea-AI Summary

Flow Beverage Corp. announces a three-year manufacturing agreement with Joyburst Beverages Inc. to produce 15 million Joyburst Hydration branded beverage units annually.

Positive

• Flow Beverage Corp. has secured a manufacturing agreement with Joyburst Beverages Inc. to produce 15 million Joyburst Hydration beverage units per year, which could positively impact the company's revenue and market share.
• The agreement allows Flow to unlock value in its Aurora production facility, which is currently being divested.
• Joyburst Hydration products are made for consumers looking to replenish vitamins and electrolytes, and the unique offering has been well-received by retail partners, particularly in the female hydration segment of the market.

Negative

• None.

TORONTO--(BUSINESS WIRE)-- Flow Beverage Corp. (TSX:FLOW; OTCQX:FLWBF) (the “Company” or “Flow”), today announced that it has entered into a three (3) year manufacturing agreement with Joyburst Beverages Inc. (“Joyburst”) having guaranteed annual production of 15 million Joyburst Hydration branded beverage units, which will be produced in Flow’s Aurora, Ontario production facility.

Launched in 2022, Joyburst is a better for you beverage company offering premium hydration energy drinks globally. Their Joyburst Hydration is made for consumers who are looking to replenish their vitamins and electrolytes. Joyburst Hydration products are offered in Tetra Paks^® and are available in three unique flavors, complimenting Joyburst’s seven flavours of energy drinks that are produced without sugars and natural caffeine sources.

“Joyburst is developing a very unique offering in the enhanced hydration market and we are delighted they have chosen to work with Flow to get Joyburst Hydration Tetra Paks^® in the hands of consumers across North America. Our Aurora production facility is ideally suited to help Joyburst reach its production goals and has the expansion potential to grow alongside our partners. This manufacturing agreement also helps Flow unlock value in relation to our Aurora production facility which, as previously disclosed, is currently in the process of being divested,” said Nicholas Reichenbach, Chief Executive Officer of Flow.

“With the successful launch of Joyburst energy drinks, we are now looking to bring our value proposition to the hydration category. This commitment with Flow is a reflection of how well our retail partners have embraced Joyburst Hydration, which has been particularly strong in the female hydration segment of the market. Produced in a 100% recyclable Tetra Pak^® has also demonstrated to be a wining proposition with our consumers who are looking to avoid plastic packaging,” added Brad Woodgate, Founder and CEO of No Sugar Company, Wellnx Life Sciences and Joyburst.

About Joyburst

Joyburst launched in 2022 as a refreshing and better-for-you beverage company. Their line up consists of a naturally caffeinated energy drinks, energy stick packs and a premium hydration beverage. The company is best known for its out-of-the-box marketing initiatives including the 2022 Super Bowl LVI commercial, music videos, collaborations with celebrities such as Vanilla Ice and many viral hits. On May 2nd, 2023, Joyburst was acknowledged with its first nationally awarded Natural Joy Day as recognized by the National Day Archives.

For More Information: https://joyburst.com/collections/joyburst-hydration.

About Flow

Flow is one of the fastest-growing premium water companies in North America. Founded in 2014, Flow’s mission since day one has been to reduce environmental impacts by providing sustainably sourced naturally alkaline spring water in a recyclable and up to 75% renewable, plant-based pack. Today, the brand is B-Corp Certified with a best-in-class score of 126.5, offering a diversified line of health and wellness-oriented beverage products: original naturally alkaline spring water, award-winning organic flavours, collagen-infused and vitamin-infused flavours in sizes ranging from 330-ml to 1-litre. All products contain naturally occurring electrolytes and essential minerals and support Flow’s overarching purpose to “bring wellness to the world through the positive power of water.” Flow beverage products are available online at flowhydration.com and are sold at over 59,000 stores across North America.

For more information on Flow, please visit Flow’s investor relations site at: investors.flowhydration.com.

Forward-Looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (“Forward-Looking Statements”). The Forward-Looking Statements contained in this press release relate to future events or Flow’s future plans, operations, strategy, performance or financial position and are based on Flow’s current expectations, estimates, projections, beliefs and assumptions. Such Forward-Looking Statements have been made by Flow in light of the information available to it at the time the statements were made and reflect its experience and perception of historical trends. All statements and information other than historical fact may be forward-looking statements. Such Forward-Looking Statements are often, but not always, identified by the use of words such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “expect”, “believe”, “anticipate”, “estimate”, “will”, “potential”, “proposed” and other similar words and expressions.

Specific Forward-Looking Statements contained in this news release include, but are not limited to, statements regarding Flow’s business strategy or outlook and future growth plans, expectations regarding the elevated pace of revenue growth, potential operational efficiencies to be realized and anticipation of profitability.

Forward-Looking Statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors, many of which are beyond Flow’s control, that could cause actual events, results, performance and achievements to differ materially from those anticipated in these Forward-Looking Statements. Forward-Looking Statements are provided for the purposes of assisting the reader in understanding Flow and its business, operations, prospects, and risks at a point in time in the context of historical and possible future developments, and the reader is therefore cautioned that such information may not be appropriate for other purposes. Forward-Looking Statements should not be read as guarantees of future performance or results. Readers are cautioned not to place undue reliance on these Forward-Looking Statements, which speak only as of the date of this press release. Unless otherwise noted or the context otherwise indicates, the Forward-Looking Statements contained herein are provided as of the date hereof, and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any Forward-Looking Statements as a result of new information or future events, or for any other reason.

The following press release should be read in conjunction with the management’s discussion and analysis (“MD&A”) and consolidated financial statements and notes thereto as at and for the three months and nine months ended July 31, 2023. Additional information about Flow is available on the Company’s profile on SEDAR at www.sedar.com, including the Company’s Annual Information Form for the year ended October 31, 2022 dated January 29, 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231018193144/en/

Trent MacDonald, Chief Financial Officer

1-844-356-9426

investors@flowhydration.com

Investors:

Marc Charbin

investors@flowhydration.com

Media:

Natasha Koifman

nk@nkpr.net

Source: Flow Beverage Corp.

FAQ

What is the manufacturing agreement between Flow Beverage Corp. and Joyburst Beverages Inc.?

The manufacturing agreement is a three-year deal that allows Flow Beverage Corp. to produce 15 million Joyburst Hydration branded beverage units annually.

What is the significance of the agreement for Flow Beverage Corp.?

The agreement allows Flow Beverage Corp. to unlock value in its Aurora production facility and potentially boost its revenue and market share.

What type of products does Joyburst Beverages Inc. offer?

Joyburst Beverages Inc. offers premium hydration energy drinks, including the Joyburst Hydration line, which is made for consumers looking to replenish vitamins and electrolytes.

How have retail partners responded to Joyburst Hydration products?

Retail partners have embraced Joyburst Hydration, particularly in the female hydration segment of the market.

What type of packaging does Joyburst Hydration use?

Joyburst Hydration products are offered in Tetra Paks® that are 100% recyclable, which appeals to consumers looking to avoid plastic packaging.