8-K: Yerbae Expands Colorado Distribution Through Eagle Rock and King Soopers, Aiming to Replicate Safety Shot's Success

Yerba Brands Corp. announces a new distribution agreement with Eagle Rock Distributing to supply its functional beverages to King Soopers locations across Colorado, mirroring Safety Shot's strategy of securing major supermarket chain distribution.

Summary

• Yerba Brands Corp. has partnered with Eagle Rock Distributing to distribute its 12oz functional beverage line to King Soopers supermarkets throughout Colorado.
• This move aims to capitalize on the increasing consumer demand for plant-based, better-for-you beverage options.
• The distribution agreement seeks to emulate Safety Shot, Inc.'s success in establishing distribution agreements with major supermarket chains.
• Eagle Rock will distribute Yerba's Mango Passionfruit, Black Cherry Pineapple, and Peachy Mimosa Twist flavors.
• These beverages are zero sugar, zero calorie, non-GMO, and gluten-free.
• Safety Shot, Inc. is in the process of acquiring Yerba.

Sentiment

Score: 7

Explanation: The announcement is generally positive, highlighting a new distribution agreement and potential synergies with Safety Shot. However, there are inherent risks associated with forward-looking statements and the completion of the acquisition.

Positives

• Yerba gains access to a large supermarket chain (King Soopers) through a distribution agreement with Eagle Rock.
• The expansion aligns with the growing consumer demand for healthier beverage options.
• The partnership mirrors Safety Shot's successful distribution strategy, potentially leading to increased sales and brand visibility.
• Yerba's beverages cater to health-conscious consumers with zero sugar, zero calorie, non-GMO, and gluten-free formulations.
• The impending acquisition by Safety Shot, Inc. suggests potential synergies and future growth opportunities.

Negatives

• The success of the distribution agreement depends on consumer acceptance of Yerba's products in King Soopers stores.
• The forward-looking statements are subject to risks and uncertainties, including Yerba's ability to capitalize on the demand for plant-based beverages.
• The completion of the acquisition of Yerba by Safety Shot is not guaranteed and is subject to various risks and uncertainties.

Risks

• Yerba's inability to grow its presence in Colorado and capitalize on the demand for plant-based beverages.
• The risk that the Yerba and Safety Shot transaction may not be completed in a timely manner or at all.
• Changes in applicable laws or regulations could adversely affect Yerba.
• Yerba may be adversely affected by other economic, business, and/or competitive factors.
• The company operates in very competitive and rapidly changing environments.

Future Outlook

Yerba aims to expand its retail footprint and make its products more accessible to health-conscious consumers, aligning with Safety Shot's strategy of securing prominent placements in convenience stores and major supermarket chains. The company anticipates that the partnership with Eagle Rock will be mutually beneficial and contribute to the continued growth of both brands.

Management Comments

• Todd Gibson, CEO and Co-Founder of Yerba, stated that Colorado consumers are increasingly focused on health and wellness, and Yerba's beverages are a perfect fit for this market.
• Jarrett Boon, CEO of Safety Shot, Inc., believes that the partnership will be mutually beneficial and contribute to the continued growth of both brands.

Industry Context

The announcement reflects the ongoing trend of increasing consumer demand for plant-based and better-for-you beverage options. Yerba's expansion into King Soopers aligns with this trend and positions the company to compete with other functional beverage brands in the market. Safety Shot's involvement through the acquisition adds another layer, potentially leveraging their existing distribution networks and market presence.

Comparison to Industry Standards

• Yerba's strategy of targeting major supermarket chains mirrors the approach of established beverage companies like PepsiCo and Coca-Cola, which rely on extensive distribution networks to reach consumers.
• The focus on zero sugar, zero calorie, non-GMO, and gluten-free beverages aligns with the growing trend of health and wellness in the beverage industry, similar to brands like La Croix and Spindrift.
• Safety Shot's involvement could provide Yerba with access to resources and expertise, potentially accelerating its growth and market penetration, similar to how larger beverage companies often acquire smaller, innovative brands.

Stakeholder Impact

• Shareholders of Yerba Brands Corp. may benefit from increased sales and brand visibility.
• Consumers in Colorado will have greater access to Yerba's functional beverages.
• Eagle Rock Distributing will expand its portfolio of beverage products.
• Safety Shot, Inc. aims to strengthen its position in the beverage market through the acquisition of Yerba.

Next Steps

• Eagle Rock will begin distributing Yerba's products to King Soopers locations throughout Colorado.
• Safety Shot, Inc. will continue to work towards completing the acquisition of Yerba.
• Safety Shot, Inc. is introducing business-to-business sales of Sure Shot to distributors, retailers, restaurants, and bars throughout 2025.

Key Dates