Flow Beverage Corp. announced that it has entered into a manufacturing agreement with BeatBox Beverages, known as The World's Tastiest Party Punch, whereby Flow will manufacture and package BeatBox's innovative line of Party Punch alcoholic beverages. The Agreement has a term of five years, with commitments for BeatBox to purchase certain minimum annual volumes which, in the aggregate, equate to approximately $115 million in revenue over the life of the Agreement.

Additionally, the Agreement has a take-or-pay provision requiring that BeatBox pay Flow the equivalent of 85% of the value of the difference between the applicable Minimum Annual Volume and the actual volume purchased during the relevant 12-month period. The production is expected to commence between May and July 2024, and is subject to Flow achieving certain pre-production requirements, including Flow making modifications to and retrofitting its Aurora production facility, while also obtaining the necessary governmental permits and authorizations. To help fulfill its commitment to the new partnership between Flow and BeatBox, to support growth in its co-packing operations generally and as required for production to commence and take-or-pay commitments to come into force under the Agreement, Flow will be installing a new TetraPak production line dedicated to alcohol production at its Aurora production facility.

Under the terms of the Agreement, BeatBox will be responsible for compliance with all legal and regulatory obligations in connection with the marketing, distribution and commercialization of the alcohol-based products.