Flow Beverage Corp debuts on Toronto Stock Exchange, posts 97% surge in revenues in first half

By Elaine Watson

- Last updated on GMT

L-R: Flow CEO Maurizio Patarnello and founder Nicholas Reichenbach. (Picture credit: Flow Beverage Corp)
L-R: Flow CEO Maurizio Patarnello and founder Nicholas Reichenbach. (Picture credit: Flow Beverage Corp)

Related tags Flow Water Bottled water

Common shares in naturally alkaline spring water Flow Beverage Corp. began trading on the Toronto Stock Exchange today (ticker symbol 'FLOW'), following the company’s reverse takeover transaction via a three cornered amalgamation with RG One Corp. and Flow Water Inc.

Toronto-based Flow, which launched its first products in 2015, posted a 40% increase in net revenues in fiscal 2020 to $CAD23m, and a net loss of $CAD48.1m.

In the six months to April 30, 2021 (first half of fiscal 21), the company's growth rate accelerated, with net revenues surging 97% to $CAD20.3m with a net loss of $CAD31.9m, said Flow CEO and former Nestlé Waters boss Maurizio Patarnello, who was lured out of retirement by Flow founder Nicholas Reichenbach earlier this year.

“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.”

New Tetra Pak manufacturing lines have increased manufacturing capacity to 350m+ units/year

Historically, the playbook for a successful venture-backed beverage brand has been to “get to north of $100m and then a big guy would come along and buy you,​” Reichenbach told FoodNavigator-USA in March​.

But the Beyond Meat IPO changed the game, claimed Reichenbach, who launched his first products in Tetra Paks in 2015 and is now selling Flow in 20,000+ stores in the US and Canada from Whole Foods to CVS, Walmart, Target, and Vitamin Shoppe, with celebrity fans from Kim Kardashian to Gwyneth Paltrow re-hydrating with the brand (pH 8.1), which now includes flavored, collagen-infused, and vitamin-infused variants.

“It made the capital markets and the market at large aware that you could take a mid- to long-term growth view on a high growth emerging category leader and finance it through the public markets. So we saw a window open up for similar companies to build scale.”

Meanwhile, raising money in this way doesn’t mean an acquisition is off the table down the line, he noted, “People buy public companies all the time.”

While the US retail market for bottled water excluding c-stores grew a respectable 5.2% in the year to March 6, 2021 (Nielsen xAOC), the action is at the premium end of the market where Flow plays, said Reichenbach, who seeks to double his U.S. footprint over the next 18 months, and recently installed new TetraPak manufacturing lines that increased manufacturing capacity to 350m+ units per year.

Flow Water celebrities
Flow has attracted a glittering roster of celebrity investors and influencers, from singer Shawn Mendes to pro-basketball star Russell Westbrook. Picture credit-CNW Group/FlowWater
Flow_Water-march2021
Flow uses Tetra Pak Prisma aseptic packs made with 75% renewables ​​(paperboard from trees harvested in responsibly managed forests), a figure it want to see rise to 100% by 2025​​ (the rest of the package contains aluminum and polyethylene). ​​It also uses a plant-based cap. Picture credit: Flow Beverage Corp

  

Related news

Related products

show more

Consumer Attitudes on Ultra-Processed Foods Revealed

Consumer Attitudes on Ultra-Processed Foods Revealed

Content provided by Ayana Bio | 12-Jan-2024 | White Paper

Ayana Bio conducted the Ultra-Processed Food (UPF) Pulse survey, offering insight into consumers’ willingness to consume UPFs, as well as the variables...

Future Food-Tech San Francisco, March 21-22, 2024

Future Food-Tech San Francisco, March 21-22, 2024

Content provided by Rethink Events Ltd | 11-Jan-2024 | Event Programme

Future Food-Tech is the go-to meeting place for the food-tech industry to collaborate towards a healthier food system for people and planet.

Palate Predictions: Top Flavor Trends for 2024

Palate Predictions: Top Flavor Trends for 2024

Content provided by T. Hasegawa USA | 08-Jan-2024 | Application Note

As consumers seek increased value and experience from food and beverages, the industry relies on research to predict category trends. Studying trends that...

Oat Groats – Heat-treated Oat Kernels

Oat Groats – Heat-treated Oat Kernels

Content provided by Lantmännen Biorefineries AB | 06-Dec-2023 | Product Brochure

Lantmännen offers now Oat Groats: Heat-treated oat kernels, also known as oat groats or kilned oats, undergo heat treatment to inhibit enzymes that could...

Related suppliers

Follow us

Products

View more

Webinars