DEFA14A: Safety Shot's Acquisition Partner Yerba Secures Major Distribution Deal with National Foodservice Giant Guckenheimer

Safety Shot, Inc.'s acquisition target, Yerba Brands Corp., has announced a strategic distribution partnership with Guckenheimer, a premier national food service operator, significantly expanding Yerba's footprint in corporate dining and potentially Safety Shot's reach post-merger.

Summary

• Safety Shot, Inc. (Nasdaq: SHOT) announced that its acquisition partner, Yerba Brands Corp. (TSX-V: YERB.U; OTCQX: YERBF), has entered into a strategic distribution partnership with Guckenheimer.
• Guckenheimer is a national food service operator with over 480 market and café locations across 34 states, serving prominent companies including Google, Texas Instruments, and Duolingo.
• This partnership will significantly expand Yerba's presence in corporate dining, introducing its plant-based functional beverages to workplaces nationwide.
• The collaboration also seeks to potentially expand the reach of Safety Shot Inc.'s products within the larger food and beverage vertical following the closing of the proposed acquisition of Yerba.
• Vistar, a division of Performance Food Group, will manage the nationwide distribution of Yerba products to Guckenheimer locations using its network of 18 distribution centers.
• Guckenheimer will feature Yerba's 12-ounce energy line (Mango Passionfruit, Watermelon Strawberry, Black Cherry Pineapple, Raspberry Sorbet, Peachy Mimosa Twist) and its original unsweetened seltzer line (Açaí Blueberry, Orange Cherry Pineapple, Pomegranate Berry).
• Yerba Brands Corp., founded in 2017, specializes in zero sugar, zero calorie, non-GMO, and gluten-free plant-based functional beverages utilizing yerba mate.
• Safety Shot, Inc. has developed Sure Shot, a patented wellness product designed to lower blood alcohol content, boost clarity, energy, and mood, available online and planned for B2B sales in 2025.

Sentiment

Score: 8

Explanation: The document announces a significant strategic partnership that greatly expands market reach and distribution for Yerba, with potential benefits for Safety Shot. This is a strong positive development for the company's growth trajectory.

Positives

• Yerba Brands Corp. gains significant market expansion through a partnership with Guckenheimer, a premier national food service operator with over 480 locations across 34 states.
• The partnership provides access to a prestigious corporate dining market, serving major companies like Google, Texas Instruments, and Duolingo.
• Leveraging Vistar's nationwide distribution network ensures seamless and efficient delivery of Yerba products, enhancing logistical capabilities.
• The deal potentially expands Safety Shot's product reach within the broader food and beverage sector after the merger with Yerba is finalized.
• The collaboration reinforces Yerba's mission to provide 'better-for-you' plant-based beverages, aligning with growing consumer demand for healthier options.

Risks

• Yerba's inability to grow its presence nationwide or within the corporate dining sector.
• Yerba's ability to capitalize on the growing demand for plant-based, better-for-you alternatives in the beverage sector, particularly within Vistar's network.
• Changes in applicable laws or regulations that could impact the business.
• The possibility that Yerba may be adversely affected by other economic, business, and/or competitive factors.
• Other risks and uncertainties not in the direct control of the Company.
• Yerba operates in very competitive and rapidly changing environments, which could pose challenges.

Future Outlook

The company anticipates significant growth for Yerba's presence nationwide and within the corporate dining space, capitalizing on the increasing consumer demand for plant-based, better-for-you beverage alternatives. Safety Shot also plans to introduce business-to-business sales of its Sure Shot product to distributors, retailers, restaurants, and bars throughout 2025.

Management Comments

• Todd Gibson, co-founder and CEO of Yerba, stated: "Guckenheimer is such a respected and influential partner and we are proud to expand into such a prestigious organization."
• Todd Gibson also commented: "Expanding our presence in corporate dining has been a long-term vision, and this collaboration allows us to introduce more people to our plant-powered beverages. We're excited to fuel Guckenheimer's customers with great-tasting, functional energy."

Industry Context

This partnership aligns with the broader industry trend of increasing consumer demand for functional, plant-based, and 'better-for-you' beverages. Expanding into corporate dining through a major foodservice operator like Guckenheimer positions Yerba, and potentially Safety Shot, to capture a significant share of the growing workplace wellness and convenience market. The involvement of Vistar, a Performance Food Group division, highlights the importance of robust distribution networks in scaling beverage brands in a competitive market.

Stakeholder Impact

• Shareholders: Potential for increased revenue and market share due to expanded distribution, which could positively impact stock value.
• Customers: Increased availability of Yerba's functional beverages in corporate dining settings and potential future availability of Safety Shot's products.
• Employees: Potential for growth and expansion within both Yerba and Safety Shot as market reach increases.
• Suppliers: Increased demand for ingredients and packaging for Yerba's products.
• Distributors (Vistar): New business opportunity and increased volume through the Guckenheimer partnership.

Next Steps

• Closing of the proposed acquisition of Yerba Brands Corp. by Safety Shot, Inc.
• Seamless and efficient delivery of Yerba products to Guckenheimer locations across the country via Vistar's distribution network.
• Introduction of business-to-business sales of Safety Shot's Sure Shot product to distributors, retailers, restaurants, and bars throughout 2025.

Key Dates

Recommendation

Keywords

Safety Shot, Yerba Brands, Guckenheimer, functional beverages, plant-based beverages, corporate dining, distribution partnership, food service, wellness supplements, dietary supplements, Sure Shot, yerba mate, Nasdaq, TSX-V, OTCQX