Flow Water set to debut on the public market, raising $30 million
By Food in CanadaGeneral
Flow Water has entered into letter of intent to complete a going-public transaction. Flow Water is a premium spring water company with a diversified line of wellness-oriented beverage products sold online and at retailers throughout North America. Flow’s premium spring water is offered in original unflavored and a range of award-winning organic flavors, in sizes ranging from 330-ml to 1-liter. Due to its unique artesian spring sources, Flow products contain naturally occurring electrolytes and essential minerals, and its original and flavored water products have an alkaline pH. As part of its ongoing innovation into functional “better-for-you” beverages, Flow recently introduced a new line of collagen-infused waters with natural flavors, and certified organic flavored vitamin-infused waters.
Nicholas Reichenbach, Founder and CEO said “we are very pleased by the wave of enthusiasm we saw for our non-brokered private placement, which we ultimately upsized to CAD$30 million. In the wake of this incredible financing round, we are ready to pursue our listing on the Toronto Stock Exchange, which we view as the first step in our life as a public company. We believe that this committed capital along with our entrance into the public markets will accelerate our growth through expansion of our omni-channel retail distribution and continued product innovation, and further strengthen our brand and competitive positioning as we aggressively target the large and rapidly growing premium enhanced water and ‘better-for-you’ beverage markets, with our core premium alkaline mineral spring water, global award winning organic flavored waters, collagen infused spring water, and organic certified vitamin spring water infusions. ”
Reichenbach continued, “Flow was founded with a vision and purpose to inspire the wellness of the world with the power of water. In 2015, I saw an opportunity to utilize the abundant, beautiful water from my family’s artesian spring in South Bruce County, Ontario, and inspire change toward more mindful consumption. I worked with Tetra Pak™ to innovate the most sustainable delivery system for our great-tasting mineral rich natural spring water, and designed an eco-friendly pack to elevate the consumer hydration experience. Today, Flow has sparked a movement driven by our amazing water’s unique quality and taste that’s switching droves of customers away from unsustainable formats, which are often filled with cheap, artificially-enhanced tap water. With around 17.5 million avid consumers and growing, some 35 celebrity influencers in entertainment and sports, 250+ brand ambassadors, and hundreds of passionate shareholders and investors, the Flow family is growing exponentially. To meet market demand, we now have two vertically integrated manufacturing facilities in key North American markets that can reach customers wherever they are, sustainably and efficiently. The Flow movement is also driven by our best-in-class innovation that raises the bar and drives category growth, while building a brand that is loved because it aligns with our customer’s values for convenient yet sustainable products, exceptional taste high-quality ingredients, and functional wellness benefits. Flow is now the fastest growing premium enhanced water brand in all North American channels. We are investing vertically in sales and marketing to further accelerate penetration and grow our already thriving e-commerce business. Our goal is to become the number-one wellness beverage brand in in the world, and we have a clear path and highly skilled team to achieve this. We’ve demonstrated consistent quarter over quarter growth, grew revenue to approximately CAD $30 million in 2020, and are over 95% CAGR since 2018.”
Sustainability and protecting natural resources are central to the Company’s purpose, and Reichenbach says, “As Mother Earth is Flow’s biggest shareholder, ESG performance is at the forefront of our mission”. The Company always strives to increase sustainability throughout its value chain, for example, innovating toward 100% renewable-resource-based packaging in the next few years, and using renewable energy in its facilities.
Flow is launching a 2021 spring and summer campaign featuring a host of celebrity investors including Shawn Mendes, NBA superstar Russell Westbrook, and Taboo from the Black Eyed Peas. Their goal is to drive mass awareness of Flow’s mission and vision and inspire the Flow movement across social media and marketing platforms, and reach consumers in all channels.
Flow has established direct sales relationships with most of the largest grocery, drug store, and convenience chains in North America. Flow also works with national distributors and brokers to further expand the retail channel, specifically Acosta in North America, UNFI in North America, KeHe in North America, Purity Life in Canada, Neal Brothers Foods in Ontario, and ColdHaus in Ontario, BC, and Quebec. In 2021 Flow is adding Core-Mark in Canada to service new listings in gas and convenience chains nationally.