Toronto-headquartered Cizzle Brands (CBOE: CZZL) has signed a distribution agreement with Van Houtte Coffee Services, part of the Keurig Dr Pepper family of companies.
The move is expected to provide a significant lift to Cizzle’s sports nutrition expansion, which includes the lineup of CWENCH Hydration ready-to-drink beverages and hydration mixes.
Van Houtte Coffee Services (VHCS), a business-to-business provider of customised coffee solutions and distributor of packaged beverages from leading global soft drink brands, distributes to more than 30,000 workplace and stadium accounts across Canada.
CWENCH Hydration
Formulated by renowned performance coach Andy O’Brien, CWENCH Hydration is the latest addition to Van Houtte Coffee Services’ beverage offerings.
It is being distributed alongside other leading soft drink brands including Coca-Cola and Canada Dry products.
VHCS will also be taking over the distributorship for many of the Cizzle Brands’ existing accounts in categories including sporting goods retailers and stadiums, which will enhance Cizzle’s margins for those accounts by lowering transportation costs.
Reduced overheads and brand awareness
Cizzle Brands’ chief executive officer John Celenza said that, in addition to reduced overhead costs, the company is expected to benefit from greater brand awareness and distribution.
“A significant percentage of beverages enjoyed by consumers across Canada are purchased at the organisational level—such as drinks ordered for workplaces or hospitality settings like hotels,” Mr Celenza said.
“The distributors that service these markets tend to carry established legacy brands’ products almost exclusively so it is exceedingly rare for a new brand such as CWENCH Hydration to be included among the product mix offered to these ‘out-of-home’ commercial accounts.
‘Early-stage popularity’
“We are thrilled that CWENCH Hydration was taken on by VHCS despite being less than one year old as a brand,” Mr Celenza added.
“I believe that its early-stage popularity with VHCS’ accounts is a testament to what a genuinely outstanding hydration product it is.”
Mr Celenza said the company expects the relationship with VHCS to be transformational as part of the growth journey for both Cizzle Brands and CWENCH Hydration.