Guru Organic Energy and PepsiCo Beverages Canada sign distribution agreement
Canada's Guru Organic Energy Corp. and PepsiCo Beverages Canada 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 is designed to 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,'' Carl Goyette, president and CEO of Guru, said in a statement.
"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.''
Guru Organic Energy Corp. is a fast-growing beverage company launched in Montreal 1999, when it pioneered a 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. The PepsiCo deal has the potential to expose the product to new markets: PepsiCo products are enjoyed by consumers in more than 200 countries and territories around the world.
The agreement is for an initial term of 10 years, subject to five-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.