DEFA14A: Yerbae Expands Distribution with Casey's General Stores, Leveraging Safety Shot's 7-Eleven Partnership

Yerbae, soon to be acquired by Safety Shot, announces a partnership with Casey's General Stores to bring its functional beverages to over 300 locations, building on Safety Shot's existing 7-Eleven distribution.

Summary

• Yerbae Brands Corp. is expanding its retail presence through a partnership with Casey's General Stores.
• Yerbae's beverages will be available in over 300 Casey's locations across the Midwest and Great Plains.
• The partnership includes popular 12oz SKUs like Mango Passionfruit, Black Cherry Pineapple, and Peachy Mimosa Twist.
• This expansion complements Safety Shot's partnership with 7-Eleven, where its alcohol-reducing product is available in 300 stores in the Chicago area.
• Safety Shot is in the process of acquiring Yerba.
• 7-Eleven has over 77,000 stores in 17 countries, providing Safety Shot with significant brand visibility.
• Casey's General Stores operates more than 2,400 convenience stores across 16 states.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the expansion of distribution networks and the potential synergies between Yerbae and Safety Shot. The partnerships with Casey's and 7-Eleven are viewed as significant milestones for both companies.

Positives

• Yerbae gains access to a wider audience through Casey's General Stores' extensive network.
• Safety Shot benefits from Yerbae's existing distribution channels and customer base.
• The partnership with 7-Eleven provides Safety Shot with significant brand visibility and potential for growth.
• The combined entity of Safety Shot and Yerbae can leverage synergies in manufacturing and distribution.
• Casey's customers will have access to healthier, plant-powered energy drink options.

Risks

• The proposed business combination between SHOT and Yerba may not be completed in a timely manner or at all.
• The inability to obtain or maintain the listing of SHOT ordinary shares on Nasdaq following the business combination is a risk.
• The transactions contemplated by the business combination could disrupt current plans and operations of SHOT.
• The ability to recognize the anticipated benefits of the business combination is subject to competition and the ability of the combined company to grow and manage growth economically and hire and retain key employees.
• Changes in applicable laws or regulations could adversely affect Yerba or SHOT.

Future Outlook

The document expresses optimism about the synergies between Yerbae and Safety Shot and their ability to meet the evolving needs of consumers. The expansion into Casey's is seen as a significant step forward in Yerbae's ongoing expansion strategy.

Management Comments

• Todd Gibson, CEO and Co-Founder of Yerba, stated that the partnership with Casey's is a pivotal moment for Yerbae and allows them to deliver better-for-you energy drinks to a wider audience.
• Jarrett Boon, CEO of Safety Shot, believes the partnership will create valuable synergies for both brands and enhance their ability to meet the evolving needs of consumers across the Midwest.

Industry Context

The announcement reflects the growing trend of functional beverage companies expanding their distribution networks through partnerships with convenience store chains. This strategy allows them to reach a broader consumer base and capitalize on the increasing demand for healthier beverage options.

Comparison to Industry Standards

• The partnership between Safety Shot and 7-Eleven is similar to how Red Bull, Bai, and Celsius successfully launched their beverage brands through 7-Eleven's distribution network.
• Yerbae's expansion into Casey's General Stores mirrors the strategy of other functional beverage companies that seek to increase their market presence through strategic partnerships with established retailers.

Stakeholder Impact

• Shareholders of Yerbae and Safety Shot may benefit from the increased distribution and potential synergies.
• Customers of Casey's General Stores will have access to a wider variety of functional beverage options.
• Employees of Yerbae and Safety Shot may benefit from the growth and expansion of the combined company.

Next Steps

• Yerbae will begin distributing its beverages to over 300 Casey's locations.
• Safety Shot will continue to leverage its partnership with 7-Eleven to expand the reach of its alcohol-reducing product.
• Safety Shot and Yerba will work to integrate their operations and capitalize on synergies following the acquisition.

Key Dates

Keywords

Yerbae, Safety Shot, Casey's General Stores, 7-Eleven, distribution, functional beverage, acquisition, retail, partnership