TORONTO – Flow Beverage Corp, a Canadian spring water company, experienced a significant 16% rise in its stock price to C$0.26 today, marking an impressive 37% increase since the beginning of the year. The surge followed the company’s announcement of a strategic move into the alcohol sector through a five-year partnership with BeatBox Beverage.
The deal with BeatBox Beverage, which counts high-profile investors such as Mark Cuban and Rob Dyrdek among its backers, is set to generate substantial revenue for Flow Beverage. The agreement involves Flow’s Aurora, Ontario facility being used to manufacture and package BeatBox’s Party Punch product line. Financial forecasts estimate that this collaboration could bring in C$115 million in revenue for Flow.
A notable aspect of the contract is the inclusion of a take-or-pay clause. This clause ensures financial security for Flow by obligating BeatBox to pay for 85% of the minimum annual volume’s value even if they do not take the full product amount.
This new venture builds on Flow’s recent expansion efforts. In October, the company entered into a three-year manufacturing agreement with Joyburst Beverages to annually produce 15 million units of Joyburst Hydration-branded drinks.
With production under the BeatBox agreement expected to kick off between May and July of next year, Flow Beverage is positioning itself for significant growth in the beverage industry by diversifying its offerings and partnering with established brands in new market segments.
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