- PepsiCo Beverages Canada to become exclusive national distributor of GURU plant-based energy drinks effective October 4, 2021
- Long-term agreement to significantly accelerate GURU’s Canadian growth plans
- GURU to benefit from PepsiCo Beverages Canada’s expansive direct-to-store distribution network across Canada
MONTREAL, June 14, 2021 (GLOBE NEWSWIRE) — GURU Organic Energy Corp. (TSX: GURU) (“GURU”), Canada’s leading organic energy drink brand, and The Pepsi Bottling Group (Canada), ULC (“PepsiCo®Beverages Canada”) announce that they have entered into an exclusive long-term national distribution agreement in Canada for GURU’s energy drinks.
Effective October 4, 2021, PepsiCo Beverages Canada will sell, distribute, and merchandise GURU’s organic, plant-based and better-for-you energy drinks to convenience, foodservice and retail customers nationwide. This agreement will significantly broaden GURU’s distribution and reach in Canada.
“Partnering with PepsiCo Beverages Canada at this stage of our growth for the Canadian distribution of our better-for-you energy drinks is a game changer for GURU and has the potential to accelerate our sales and distribution plans. This agreement is also a strong endorsement of GURU’s growing brand profile, which is quickly setting the standard as the Canadian consumer’s organic plant-based energy drink of choice. This is thanks to our differentiated brand and clean list of ingredients that delivers good taste and good energy,” said Carl Goyette, President and CEO of GURU.
“GURU quickly made its mark as a disruptive energy drink brand with ingredients that are organic and plant-based,” said Mike Ruff, President of PepsiCo Beverages Canada. “As we continue to focus on being consumer-centric, this partnership will help us expand our energy drink portfolio and meet the rapid changes in consumer demand for more functional beverages.”
The agreement is for an initial term of 10 years, subject to 5-year renewal periods.
In addition, GURU has granted PepsiCo Beverages Canada warrants in respect of up to 1,650,000 shares in tranches based on commercial milestones that are exercisable only on a change of control and that would be repurchased for cash if a third party were to acquire GURU or exercisable for shares of GURU if PepsiCo Beverages Canada or an affiliate were the acquirer.
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $70 billion in net revenue in 2020, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker, Tropicana and SodaStream. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. “Winning with Purpose” reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of our business strategy and brands. For more information, visit www.pepsico.ca.
GURU Organic Energy Corp. (TSX: GURU) is a dynamic, fast-growing beverage company launched in 1999, when it pioneered the world’s first natural, plant-based energy drink. GURU markets organic energy drinks in Canada and the United States through a distribution network of more than 21,000 points of sale, and through guruenergy.com and Amazon. GURU has built an inspiring brand with a clean list of organic plant-based ingredients. Its drinks offer consumers good energy that never comes at the expense of their health. GURU is committed to achieving its mission of cleaning the energy drink industry in Canada and the United States. For more information, go to www.guruenergy.com or follow us @guruenergydrink on Instagram and @guruenergy on Facebook.
PepsiCo Cautionary Statement
This release contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim,” “anticipate,” “believe,” “drive,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “strategy,” “target” and “will” or similar statements or variations of such terms and other similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such statements, including the impact of COVID-19; future demand for PepsiCo’s products; damage to PepsiCo’s reputation or brand image; issues or concerns with respect to product quality and safety; PepsiCo’s ability to compete effectively; changes in the retail landscape or in sales to any key customer; disruption of PepsiCo’s supply chain; failure to successfully complete or manage strategic transactions; imposition or proposed imposition of new or increased taxes aimed at PepsiCo’s products; imposition of limitations on the marketing or sale of PepsiCo’s products; and failure to comply with applicable laws and regulations. For additional information on these and other factors that could cause PepsiCo’s actual results to materially differ from those set forth herein, please see PepsiCo’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
GURU Cautionary Statement
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 GURU 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: continued uncertainty in the financial markets; an economic downturn; adverse changes in general economic or political conditions; the COVID-19 pandemic; fluctuations in foreign currency exchange rates; increased competition; reliance on energy drinks as our sole source of revenues; changes in consumer preferences; the changing retail landscape; significant changes in government regulation; criticism of energy drink products and/or the energy drink market; reliance on co-packers to manufacture our products; our ability to maintain good relations with our existing customers; increases in costs and/or shortages of raw materials, ingredients, fuel and/or co-packing; failure to accurately estimate demand for our products; loss of intellectual property rights; our ability to retain senior management or to maintain brand image or product quality; climate change; our ability to achieve and manage growth; conflicts of interest; litigation; and catastrophic events. Certain assumptions were made in preparing the forward-looking statements concerning availability of capital resources, business performance, market conditions and consumer demand. 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.
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