Cizzle's $84M Deal to Create a Vertically Integrated Beverage Titan

TORONTO, ON – January 08, 2026 – In a move that fundamentally reshapes its corporate identity, sports nutrition company Cizzle Brands Corporation has completed an $83.75 million acquisition of Flow Water Inc.'s manufacturing business. The deal transforms Cizzle from a brand-focused entity into a vertically integrated beverage platform, positioning it as a key infrastructure owner in the rapidly growing sustainable packaging market.

The acquisition, finalized on December 24, 2025, provides Cizzle with The CWENCH Hydration Factory, a state-of-the-art facility specializing in eco-friendly Tetra Pak packaging. More than just a factory purchase, the transaction includes a robust order book worth approximately $184 million in contracted manufacturing volume, securing a significant and immediate revenue stream for the company.

A Strategic Masterstroke: From Brand to Infrastructure Owner

For Cizzle Brands, this acquisition marks a pivotal strategic shift. The company, known for its flagship CWENCH Hydration sports drink and other wellness products, previously relied on Flow Water Inc. as its outsourced manufacturer. By bringing production in-house, Cizzle immediately secures its supply chain, gains full control over the scaling of its products, and eliminates third-party margins, which is expected to significantly reduce its Cost of Goods Sold (COGS) and bolster profitability.

"We identified a rare window to acquire a premier manufacturing asset without the burden of its predecessor’s balance sheet," said John Celenza, CEO of Cizzle Brands, in a statement. "We are no longer just a brand; we are an infrastructure owner. Not only does this secure the long-term future of CWENCH Hydration with improved margins, it also provides us with a highly lucrative co-manufacturing division serving some of the world’s biggest beverage portfolios. We have built a moat around our business that few in the beverage space can replicate."

The move to vertical integration provides a defensive advantage in a volatile market, insulating Cizzle from supply chain disruptions while simultaneously creating a new, high-growth offensive capability through its co-manufacturing services.

The 'Diamond in the Rough' Deal Structure

The transaction is a textbook example of an opportunistic acquisition, leveraging the court-supervised receivership of the former parent company, Flow Beverage Corporation, which faced significant financial distress in 2025. This legal process allowed Cizzle to carve out the profitable manufacturing business, structurally separating it from the historical liabilities and marketing overhead that burdened its predecessor.

Cizzle acquired what it calls a "clean asset." The CWENCH Hydration Factory comes with a debt-free balance sheet, as five of its six production lines are owned free and clear. As part of the deal, the vendor settled approximately $14 million in finance leases for a fourth line and paid all commissioning costs for a new high-speed sixth line, ensuring the facility is modernized and turnkey. The only major obligations are a manageable property lease and a tripartite agreement for the fifth line involving key customer BeatBox.

A significant financial prize included in the deal is an estimated $130 million in tax loss carryforwards. This substantial tax shield will allow Cizzle to minimize future tax obligations from the manufacturing business for years, maximizing cash flow retention and accelerating its ability to reinvest in growth or pay down debt.

Betting Big on Sustainable Packaging

The strategic rationale extends beyond Cizzle's own products, tapping directly into a powerful market trend: the consumer-led shift away from plastic (PET) bottles toward more sustainable options. Demand for aseptic Tetra Pak packaging is surging, but production capacity in North America remains constrained. By acquiring this facility, Cizzle has instantly become a key player in this high-demand, limited-supply sector.

This positions the company not just as a beverage maker, but as a critical infrastructure provider for the industry's green transition. The factory's co-manufacturing clients include the spun-out Flow Water brand and, notably, BeatBox Beverages. The stability of BeatBox, a rapidly growing ready-to-drink cocktail brand, was recently underscored by its acquisition by beverage giant Anheuser-Busch InBev, validating the strength of the factory's existing customer base.

The guaranteed revenue from these contracts, which include "take-or-pay" provisions ensuring a minimum revenue floor of approximately $158 million, provides a stable foundation for Cizzle's ambitious growth plans.

A Lucrative Revenue Stream and Path to Profitability

The financial impact of the acquisition is projected to be immediate and substantial. Cizzle anticipates the new manufacturing arm will contribute approximately $24 million in revenue for the remainder of fiscal 2026, growing to $53 million in fiscal 2027. On a consolidated basis, accounting for internal synergies, the company projects pro forma revenues of $44 million in fiscal 2026 and $79 million in fiscal 2027.

This new revenue scale is expected to drive the company to its first Adjusted EBITDA positive quarter in late 2026, with a target of $14 million in Adjusted EBITDA for the full 2027 fiscal year. Management's confidence is supported by a clear plan to enhance operational efficiency, aiming to improve plant output from its current 56% to 65% within nine months, citing experience from a previous acquisition of a Flow facility in Virginia.

Further growth is already engineered into the factory's footprint. The new Line 6, set to come online in May 2026, will add 48 million units of annual capacity. The facility also has space for two additional production lines, which could ultimately boost total annual capacity to 338 million units—a more than 65% increase from its current potential. This built-in expansion pathway offers a clear roadmap for doubling revenue from the manufacturing segment in the coming years.

To fund the deal, Cizzle secured a US$40 million credit facility from Orion Infrastructure Capital and a $22.25 million promissory note from the vendor, supplemented by equity placements. The structure of the primary debt, which defers cash interest payments for the first six months, provides operational flexibility as the company integrates its new asset. With a robust and partially guaranteed revenue stream, Cizzle appears well-positioned to service this new debt while executing its transformation into a formidable, vertically integrated force in the North American beverage industry.