Flow Beverage Corp. 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.