Guru Organic Energy announces ending of distribution agreement with PepsiCo Canada
Guru Organic Energy Corp., a Canadian organic energy drink brand, announced that its distribution agreement with The Pepsi Bottling Group (Canada), ULC, a subsidiary of PepsiCo Canada, will come to an end on May 22, 2025.
The termination occurred in accordance with the terms outlined in the agreement with PepsiCo Canada signed in June 2021.
The original agreement that went into effect on October 4, 2021, PepsiCo Beverages Canada would sell, distribute, and merchandise Guru's organic, plant-based and better-for-you energy drinks to convenience, foodservice and retail customers nationwide. This agreement between the two companies was meant to 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, said in a statement released at the time of the agreement.
With the early ending of the agreement, Guru will transition back to its direct distribution model ensuring uninterrupted service to retailers and consumers across Canada.
“We are excited to resume direct business relationships with all retailers across Canada, reconnect with our partners and strengthen Guru's presence in the market while continuing to grow our presence online and in the U.S.,” said Goyette, upon the announcement. “We remain committed to delivering the same high-quality products and service to our valued customers and partners throughout the transition.”
Between now and May 22, 2025, Guru says it will continue to work closely with PepsiCo Canada to ensure a smooth transition for all stakeholders.
Post-transition, Guru plans to expand its internal sales force and reestablish partnerships with distributors who share its vision for better-for-you energy innovation.
This transition aligns with Guru’s focus on fostering a more direct connection with consumers and reinforcing its unique position as a leader in the natural energy drink space, according to the company. It believes this change will provide greater flexibility, stronger brand control, and the ability to reinvest in growth opportunities.
According to a report in La Presse, Stifel analyst Martin Landry says the ending of the distribution agreement likely suggest that the partnership between the two companies was not producing benefits for both as it was intended.
With the large number of existing energy drink products and other products that Pepsi distributes—Rockstar, Celsius and Gatorade, for example—Guru may have not gotten the attention it desired in the highly competitive energy drink market.
According to StrategyHelix Group, the Canada energy drinks market is set to increase from US1,641.7 million in 2023 to US2,382.0 million by 2029.
