Flow, BioSteel enter into three-year manufacturing agreement
By Food in Canada StaffBusiness Operations Beverages BioSteel co-packing Flow Ontario
Flow Beverage and BioSteel Sports enter into a manufacturing agreement whereby Flow will manufacture and package Biosteel-branded sport hydration beverages. Flow has been a manufacturer of Biosteel-branded beverages since 2020. On December 1, 2023, BioSteel Sports, a recently incorporated company controlled by Dan Crosby, acquired from DC Holdings certain assets that were previously owned by BioSteel Sports.
The agreement has a term of three years, with commitments from BioSteel Sports to purchase minimum annual volumes equating to approximately $19.3 million in revenue. Additionally, the agreement has a take-or-pay provision requiring that BioSteel Sports pay Flow the equivalent of 80 per cent of the value of the difference between the applicable minimum annual volume and the actual volume purchased during the relevant 12-month period. The agreement provides for the committed purchase of 12 million units within the first four months of the agreement, 1,062,500 averaged minimum committed purchases of packs per month for the remainder of current calendar year, and a cumulative minimum production of 24,000,000 packs for each subsequent calendar year.
“It’s very exciting to be entering into this new partnership with BioSteel Sports, co-packing one of the most innovative brands in sports hydration and working closely with its new owner. Having also recently added BeatBox Party Punch alcoholic beverages and Joyburst energy drinks as co-pack partners, our Aurora production facility is scaling to meet this increased demand from brands and their consumers for premium and functional beverages offered in an environmentally conscious manner. The growth in our co-pack business is expected to contribute to ongoing improvements to profitability that have also included our restructuring, a transition to third-party logistics and the addition of a fourth production line in Aurora,” said Nicholas Reichenbach, founder and CEO of Flow.
Crosby added, “I’m excited to announce that we’ll be starting production of the very popular ready-to-drink Biosteel products at Flow. This ensures our retailers will always have a steady supply. Our partnership with the Flow team has been fantastic, and we’re eager to keep Biosteel’s momentum going strong in the market.”
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