Five-Year Manufacturing Agreements : Manufacturing Agreement

02.12.2023 Admin 0 Comments

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Flow Beverage Corp. has entered into a five-year manufacturing agreement with BeatBox Beverages. The partnership entails Flow producing and packaging BeatBox’s Party Punch alcoholic beverages, with contractual commitments equating to approximately $115 million in revenue over the deal’s life. As part of the collaboration, Flow will enhance its Aurora production facility’s capacity by adding a fourth production line. Additionally, Flow secured a $5 million senior secured term loan with NFS Leasing to support capital expenditure and working capital requirements. Production is expected to commence between May and July 2024.

The manufacturing agreement with BeatBox Beverages resents Flow with the opportunity to diversify its co-packing services and expand to the alcoholic beverages market. BeatBox, known for its Tetra Pak packaging and B Corp certification, is expected to experience growth through this collaboration.

Image Credit: Shutterstock

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