TORONTO--(BUSINESS WIRE)--Flow Beverage Corp. (the “Company” or “Flow”), is pleased to announce that it has received approval to list its subordinate voting shares on the Toronto Stock Exchange (the "TSX") under the trading symbol "FLOW". The Company expects that its subordinate voting shares will commence trading on the TSX on July 14, 2021.
Nicholas Reichenbach, Founder and Executive Chairman of Flow, stated: “We are absolutely thrilled to be announcing our debut on the TSX. We are very grateful to our supporters who have helped Flow establish a broad customer base across North America. We believe the tailwinds of sustainability, premium product consumption and the demand for ‘better-for-you and better for-the-planet’ products will continue to accelerate market share gains for the Flow brand.”
On June 29, 2021, the Company completed its reverse takeover transaction by way of a three cornered amalgamation with RG One Corp. and Flow Water Inc. (the “Transaction”) and as part of the Transaction the Company’s name was changed to Flow Beverage Corp. and the Company continued under the federal laws of Canada. As part of the Transaction, the Company filed an Annual Information Form which details the Transaction and resulting issuer in detail, and the Company also filed financial results for Flow Water Inc. (“Flow Water”) for the three- and six-month periods ending April 30, 2021 (“Q2 2021” and “YTD Q2 2021,” respectively) on SEDAR.
Maurizio Patarnello, Flow’s Chief Executive Officer, commented: “We are very pleased with the 97% net revenue growth in the first half of fiscal 2021. We have also materially improved gross margin, increasing to 32% in the first half of fiscal 2021 and growing to 35% in Q2 2021. We are accelerating our growth strategy by expanding distribution with leading North America retailers and through our direct-to-consumer and subscription models. We continue to invest in brand awareness and activation at the point of sale, and have reinforced our leadership team to support our future growth.”
Key Financial and Operating Highlights Q2 and year-to-date:
- 74% increase in net revenue to $11.3 million in Q2 2021 (97% increase to $20.3 million YTD Q2 2021);
- gross margin increased to 35% for Q2 2021 (32% YTD Q2 2021), an increase from 27% gross margin in the prior year comparative period (9% YTD Q2 2020);
- signed over 35 regional Direct Store Distribution (DSD) contracts in the United States;
- with the Publix authorization in April 2021, added over 971 key points of distribution in the state of Florida;
- launch of three new collagen-infused SKUs: Meyer Lemon, Blood Orange, and Pomegranate flavors in both the United States and Canada;
- launched Original 1 Liter, two organic flavors and multipack in over 934 Target locations nationally in April 2021;
- acquired and installed 2 new TetraPak® manufacturing lines that increased manufacturing capacity to over 350 million units per year; and,
- launched Spring/Summer Celebrity Campaigned “Beautiful Inside and Out,” featuring Shawn Mendes, Halle Barry, Russell Westbrook, Taboo, Hannah Bronfman, and Paloma Elsesser, garnering over 4.8 billion impressions to date.
The Annual Information Form and complete second quarter results are available under the Flow Beverage Corp. (formerly RG One Corp.) profile on SEDAR at www.sedar.com.
Flow is pleased to provide an updated investor presentation, which is accessible on the Company’s new corporate website: investors.flowhydration.com.
Flow is a premium alkaline spring water company with a diversified line of health and wellness-oriented beverage products sold online and at retailers throughout North America. Flow's premium alkaline spring water is offered in original unflavored and a range of award-winning organic flavors, in sizes ranging from 330-ml to 1-liter.
Due to its unique artesian spring sources, Flow products contain naturally occurring electrolytes and essential minerals, and its original and flavored water products have an alkaline pH. As part of its ongoing innovation into functional "better-for-you" beverages, Flow recently introduced a new line of collagen-infused waters with natural flavors.
Founded in 2014 by serial, mission-driven entrepreneur Nicholas Reichenbach, Flow is highly dedicated to sustainability and is a B-Corp Certified company with a purpose to "bring wellness to the world through the positive power of water." Flow set out to be a sustainable brand, packaging its products in up to 75% renewable-resource-based Tetra Pak™ cartons utilizing sustainable operations.
Flow products are available online at flowhydration.com, and are sold at over 20,000 stores across the United States and Canada, including Target, Walmart, Costco, Whole Foods Market, Stop & Shop, Publix, Loblaws, Sobeys, Metro, Shoppers Drug Mart, Farm Boy, Sprouts Farmers Market, Safeway, Wegmans, Harris Teeter, Giant Eagle, Bristol Farms, Raley's, and Duane Reade, among others.
For more information on Flow, please visit Flow’s investor relations site at: investors.flowhydration.com
This press release may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Such forward-looking statements include, but are not limited to, information with respect to our objectives and the strategies for achieving those objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking statements are typically identified by the use of words such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, or “continue”, although not all forward-looking statements contain these words. 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 are based on assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. Those risks and uncertainties include the following: impact and spread of COVID-19; ability to achieve and manage growth; failure to expand sales capabilities; changes in consumer preferences; criticism of packaged water; maintain brand image and product quality; constrained or unavailable spring water sources; inability to package products; increased competition; accurately estimating demand; maintaining relationships with distributors and vendors; changing retail landscape; incorrect product design or development; product information misrepresentation; revenues derived entirely from packaged beverages; increases in costs or shortages of materials; fluctuation of quarterly operating results; no assurance of profitability; fluctuations in foreign currency; changes in government regulation; contamination or recalls of ingredients or end products; loss of intellectual property rights; litigation; future tax rates; catastrophic events; climate change; seasonal business; dependence on key information systems and third-party service providers; ability to securely maintain confidential information; maintaining and upgrading information technology systems; conflict of interest; dual class share structure; potential volatility of share price; no assurance of active market for shares; lack of dividends; global financial condition; publication of inaccurate or unfavourable research and reports; operating history; and management and conflict of interests. Consequently, all of the forward-looking statements contained herein are qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking statements contained herein are provided as of the date hereof, and we do not undertake to update or amend such forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.