The agreement includes a committed purchase amount of US$250K within the first year, exceeding PLC’s 2023 coca extract sales projections.
TORONTO, July 11, 2023 — Power Leaves Corp. (“PLC”), a manufacturer of decocainized coca leaf extract, announced that it has signed a supply agreement with a Canadian food and beverage company (the “Customer”). Under the agreement, the Customer has a committed purchase obligation of 2,500 litres of PLC’s coca extract product at $100 per litre in the first 12 months, on a take-or-pay basis.
“We are very excited about the signing of this supply agreement. It not only confirms the demand and excitement in the market for our coca products, but it ensures Power Leaves remains on track to meet its revenue projections for 2023 and beyond,” commented Pat McCutcheon, Co-Founder & CEO of Power Leaves Corp.
Through this agreement, PLC has granted the Customer exclusive rights for its coca extract for the Canadian market in the product categories of coffee products, gum products, and sparkling water products. Other product categories, as well as PLC’s coca essence and DeCarb products, do not fall under these exclusivity rights.
In order to maintain its coca extract exclusivity rights, the Customer is committed to purchasing a minimum of 625L per quarter for Year 1, increasing to a minimum of 6,250L per quarter for Year 2, at a price of $100 per litre. This order volume exceeds PLC’s internal revenue projections for coca extract for 2023, and, if the Year 2 minimum purchase obligations are met, would fulfill the Canadian portion of its coca extract revenue projections for the subsequent quarters.
“The market clearly understands the potential of this ingredient, and savvy operators are looking to lock-up exclusivity for their territory and product categories.” Mr McCutcheon continued. “The committed purchase amount under this agreement, along with our other Essence and DeCarb products and the wide range of product use cases for our coca extract, ensure the Canadian market will be a major growth driver for Power Leaves.”
This supply agreement comes after a sample shipment of PLC’s coca extract and essence products was sent to Canada earlier in Q2 2023, and the earlier signing of our first supply agreement and commercial order with a U.S. beverage company. With sample shipments also sent to the United States and Australia, PLC expects this order to be followed by others globally, in the coming weeks and months.
About the Products
PLC has developed proprietary coca extracts optimized for flavor and aroma that will serve as the foundation for its commercial products. The coca extract is high in protein, vitamins, and nutrients and has multiple known health benefits including providing gastrointestinal relief, increases in energy, and appetite suppression, among others. Specifically, PLC has two core products:
Coca Extract:
- A crude coca extract with an exceptional flavor profile and packed with an array of nutrients that is ideal for soft drinks and energy drinks.
- The global carbonated beverage market is a $232B(1) opportunity, where “Cola” is the largest segment of the market, with natural cola products struggling to deliver a flavor that pops.
Coca Essence:
- A highly aromatic, terpene-rich concentrate for dilution and blending into alcoholic beverages such as gin, vodka, tequila, and hard seltzer.
- The U.S. alcoholic beverage market is a $283B(2) opportunity and in a “health trend” crisis, needing new, natural-based ingredients to reinvigorate products.
Overall, the global food and beverage industry is experiencing rising demand for natural and nutritious products and ingredients that are free of chemicals and have an exceptional taste profile. Today, the majority of “flavor” agents are chemically synthesized, add zero nutritional value, and require an “artificial flavor” label that reduces customer appeal.
In comparison, PLC’s coca extract products offer a new “hero” ingredient that is immediately recognizable and makes products stand out. As a real food ingredient, PLC’s coca extract can add nutritional value to product labels and be listed as “natural flavors” or directly as “coca extract”, increasing the positive health perception of a product.
About Investing In Power Leaves Corp.
Power Leaves is currently accepting investments from accredited investors through a Reg D 506(c) offering. With over US$3.7M raised in the current round, the offering is expected to only be open for a limited time. To learn more about investing in Power Leaves visit invest.powerleaves.com.
About Power Leaves Corp.
Founded in 2019, Power Leaves is breaking the monopoly on the supply of coca leaf extract and ushering in a new Age of Coca. Through an exclusive agreement with an Indigenous community, Power Leaves has developed the first-ever legal Colombian supply chain for decocainized coca extract to supply the global food and beverage markets. Through its established infrastructure, Power Leaves is developing and manufacturing proprietary formulations of coca extract and essence that offer an exceptional taste profile and an all-natural source of protein, nutrients, and positive health benefits. For more information, visit www.powerleaves.com.
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Investors:
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Investor Relations
- Market Data Forecast, 2022
- Statista, 2023
Cautionary Notes
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this press release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected” “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and the delay or failure to receive shareholder, director or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, PLC assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
