Varon Corp CEO discusses Canadian market opportunity – ICYMI
Varon Corp (OTCID:OZSC) earlier this week announced an exclusive agreement to distribute the Ballislife Hydro sports drink in Canada, marking what management described as the first step in a broader international expansion strategy.
Speaking with Proactive, CEO Ben Schubert said the five-year agreement, valued at approximately US$12-13 million over its term, allows the company to sharpen its focus on the distribution and sales of Hydro as it progresses its corporate plans.
Proactive: The company recently announced an exclusive agreement to bring the Ballislife Hydro sports drink into Canada. Tell us about this significant step.
Ben Schubert: It's very exciting. As we get closer to completing the RTO with OZOP, we're able to refocus on what we're here to do, which is the distribution and sales of Hydro. We're partnering with a distributor that not only has excellent reach across Canada but is deeply involved in the basketball community.
This is a five-year agreement worth approximately US$12-13 million over its term. It's an exclusive arrangement and it's exciting to see interest outside the United States. Canada is the first of many distribution territories we expect to expand into.
Why was having a basketball-focused distributor so important?
It's more than simply understanding the industry. They already have established points of sale through their basketball facilities, which are expected to grow to around eight locations across Canada by the end of the year. These venues already work with organizations including the Toronto Raptors and the NBA.
They provide an ideal platform to introduce the brand, generate sales, create excitement and build awareness before expanding further into traditional retail channels.
Why do you believe Canada is such an attractive market?
I think people underestimate the Canadian market. It's where we first established ourselves and we've had tremendous success there. There's been very little innovation in the category and we believe consumers are looking for healthier functional beverages.
Retailers are allocating more shelf space to these products and competition remains relatively limited because of the regulatory requirements surrounding bilingual labelling through the CFIA. That's an area where we already have significant experience, so we're excited about the opportunity.
Could Canadian basketball partnerships become part of your marketing strategy?
We've already started exploring that. We're speaking with agencies we already work with in the United States that represent potential Canadian talent. We can't commit to anything yet, but it's definitely on our radar and could become very beneficial for the brand.
Quotes have been lightly edited for style and clarity