FLOW:CC - Flow Beverage Corp. Commences Internal Restructuring and Accelerates New Store Additions

• Expected annualized cash savings of approximately $17 million
• Over 10,000 new stores added since July 2022
• Operational update conference call will be hosted January 9, 2023 at 8am

Flow Beverage Corp. (TSX:FLOW; OTCQX:FLWBF) (“Flow” or the “Company”) today announced that it has commenced an internal restructuring, which will further optimize the Company’s operations toward achieving profitable growth of the Flow brand. The internal restructuring and the previously announced sale of the Verona production facility are expected to result in a reduction of 80 positions.

Flow expects these initiatives to result in annualized cash savings of approximately $17 million once fully implemented. Additionally, the Company believes it can maintain a high growth trajectory for net revenue from the Flow brand while also achieving predictable cost of goods sold, improved gross margins, lower overhead costs and a stronger balance sheet.

As of December 31, 2022, Flow brand products are now in over 46,000 locations across North America, an increase of over 10,000 stores since July 2022. These new locations were added primarily through recent distribution wins in the U.S. food, drug and mass channel. In addition, expansion in the food service channel is expected to accelerate through partners like Foodbuy in the U.S. and Starbucks in Canada, while the Company also has a number of commitments from large retail partners to launch Flow vitamin-infused water in the near term in both the U.S. and Canada.

“As we focus on accelerated growth, we are determined to reach profitability with a more efficient and asset-light operating model. It is our belief that we still have levers to pull to further our operational efficiency and bolster our financial position. I would like to thank everyone who has contributed to the growth of the company over the last seven years, creating a complete line of premium and sustainably sourced water products that millions of consumers have enjoyed,” said Nicholas Reichenbach, founder and CEO of Flow.

Conference Call and Webcast Details

About Flow

Flow is one of the fastest-growing premium water companies in North America. Founded in 2014, Flow’s mission since day one has been to reduce environmental impacts by providing sustainably sourced naturally alkaline spring water in a recyclable and up to 75% renewable, plant-based pack. Today, the brand is B-Corp Certified with a best-in-class score of 126.5, offering a diversified line of health and wellness-oriented beverage products: original naturally alkaline spring water, award-winning organic flavours, collagen-infused and vitamin-infused flavours in sizes ranging from 330-ml to 1-litre. All products contain naturally occurring electrolytes and essential minerals and support Flow’s overarching purpose to “bring wellness to the world through the positive power of water.” Flow beverage products are available online at flowhydration.com and are sold at over 46,000 stores across North America.

For more information on Flow, please visit Flow’s investor relations site at: investors.flowhydration.com .

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 Flow 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: impact and spread of COVID-19; ability to achieve and manage growth; failure to expand sales capabilities; changes in consumer preferences; criticism of packaged water; maintain brand image and product quality; constrained or unavailable spring water sources; inability to package products; increased competition; accurately estimating demand; maintaining relationships with distributors and vendors; changing retail landscape; incorrect product design or development; product information misrepresentation; revenues derived entirely from packaged beverages; increases in costs or shortages of materials; fluctuation of quarterly operating results; no assurance of profitability; fluctuations in foreign currency; changes in government regulation; contamination or recalls of ingredients or end products; loss of intellectual property rights; litigation; future tax rates; catastrophic events; climate change; seasonal business; dependence on key information systems and third-party service providers; ability to securely maintain confidential information; maintaining and upgrading information technology systems; conflict of interest; dual class share structure; potential volatility of share price; no assurance of active market for shares; lack of dividends; global financial condition; publication of inaccurate or unfavorable research and reports; operating history; and management and conflict of interests. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230109005256/en/

Trent MacDonald, Chief Financial Officer
1-844-356-9426
investors@flowhydration.com

Investors:
Marc Charbin
investors@flowhydration.com

Media:
Natasha Koifman
nk@nkpr.net