Flow Beverage Corp., a Toronto-based alkaline water producer and aseptic packaging co-packer, is facing foreclosure by two of its creditors after allegedly defaulting on its loans, the company announced in a statement on Monday morning.
Alongside the foreclosure, Flow announced the exit of founder and longtime CEO and executive chairman Nicholas Reichenbach, effective immediately.
Reichenbach remains a member of the board and all other board members are staying in their roles, according to the company. A special committee of independent directors has been formed and “is actively considering various alternatives to address the situation and pursue strategic alternatives”.
The role of Interim CEO will be fulfilled by a committee of board members which includes the chair of the special committee, the CFO and Flow’s general counsel and corporate secretary.
Reached by BevNET, Reichenbach declined to comment on the situation citing confidentiality, noting only that he is still an active director and “one of the largest shareholders.”
Flow had relayed varying states of financial difficulty and growth-minded optimism in its quarterly earnings reports in recent years, but the situation appears to have become more dire in recent weeks.
The company announced this morning that it received a demand letter for repayment dated August 22 from two of its primary lenders – NFS Leasing Canada Ltd. and RI Flow LLC.
As recently as August 8, Flow reported that it received a $2 million advance under the senior secured convertible loan with RI Flow it initially received in June, the final tranche in a three-part agreement.
Founded in 2015 by Reichenbach, Flow makes a line of Tetra Pak packaged alkaline waters and in recent years derived significant growth from its co-packing operations, which includes a partnership with sports drink brand BioSteel and beverage alcohol brand BeatBox among its top clients.
In its Q1 2025 earnings report in March, Flow reported double-digit growth for the quarter of 38% to CAD$11.4 million, with co-packing accounting for the entirety of its growth (up 216%) as the branded CPG line’s sales fell 5% to CAD$6.2 million.
The company had been in the process of pulling its CPG products from “unprofitable channels,” Reichenbach stated in March.
However, in Q2, revenue dropped 17% with brand revenue down 49% year-over-year. The company had highlighted recent investments, including the CAD$2 million secured term note with NFS Leasing Canada Ltd., as evidence it could right the ship. That loan carries a 15% annual interest and matures in May 2028, according to the report.
BevNET has reached out to the company for additional comment.