Waterloo Brewing Suspends Development Plans for Cannabis-Infused Beverages
Highlights:
- Waterloo Brewing is suspending its development plans for Cannabis-Infused Beverages to further focus on its proven drivers of growth.
- Waterloo Brewing posted significant growth last year in all three segments of its beer portfolio (craft, premium, and value), its Seagram cooler and cider portfolio, and its copack business. These are the areas that Waterloo Brewing will focus its attention on in the coming years.
- New co-pack contracts announced in the previous fiscal year represents a total of over $40 million in expected incremental revenue in the next three years for Waterloo Brewing.
KITCHENER, ON, April 24, 2020 /CNW/ - Waterloo Brewing Ltd. ("Waterloo Brewing" or the "Company") (TSX: WBR), Ontario's largest Canadian-owned brewery, today suspended its development plans for the production of cannabis-infused beverages.
In the period leading up to the legalization of cannabis-infused beverages, Waterloo Brewing dedicated resources to secure the necessary licensing and prepared its facilities to produce cannabis-infused beverages. Since that time, the route to market for cannabis-infused beverages and the associated market opportunity has become less clear and highly uncertain. Given the very strong and proven performance of its current growth drivers, the Company is, for the time being, suspending any activity related to the production of cannabis-infused beverages.
About Waterloo Brewing
Waterloo Brewing is Ontario's largest Canadian-owned brewery. The Company is a regional brewer of award-winning premium quality and value beers and is officially certified under the Global Food Safety Standard, one of the highest and most internationally recognized standards for safe food production. Founded in 1984, Waterloo Brewing Ltd. (formerly Brick Brewing Co. Limited) was the first craft brewery to start up in Ontario and is credited with pioneering the present day craft brewing renaissance in Canada. Waterloo Brewing has complemented its Waterloo premium craft beers with the popular Laker brand. In 2011, Waterloo Brewing purchased the Canadian rights to Seagram Coolers and in 2015, secured the exclusive Canadian rights to both LandShark and Margaritaville. In addition, Waterloo Brewing utilizes its leading-edge brewing, blending, and packaging capabilities to provide an extensive array of contract manufacturing services in beer, coolers, and ciders. Waterloo Brewing trades on the TSX under the symbol WBR. Visit us at www.WaterlooBrewing.com.
Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Examples of forward looking information include statements with respect to the areas the Company will focus on in the coming years and expected incremental revenue from new co-pack contracts. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that the Company considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors identified in the Company's most recent Management's Discussion and Analysis and under "Risk Factors" in the Company's most recent Annual Information Form, both of which are available under the Company's profile on SEDAR at www.sedar.com, including risks and uncertainties associated with the COVID-19 pandemic. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information.
Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements.
SOURCE Waterloo Brewing Ltd.
David Birch, Chief Financial Officer, 416-895-4824, E-mail: [email protected]
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