Canadian functional beverage firm Koios has entered into a packaging agreement with Golden Global Goods, the parent company of Rocky Mountain Soda.
The deal gives Koios access to Rocky Mountain’s high-volume production line, allowing it to produce a lower minimum amount of product while achieving the same cost-effectiveness that could otherwise only be gained through mass production.
In the future, the production line may also be used by Koios’s wholly-owned subsidiary Cannavated to produce its new line of CBD-infused beverages.
Rocky Mountain Soda is known for its hand-crafted sodas made in small batches. Koios will purchase two new tanks on behalf of Rocky Mountain Soda, of which it will have priority use for two years under the agreement. The tanks will be used to mix and create Koios’s beverages, made from a proprietary blend of nootropics.
Chris Miller, Koios founder and CEO, said: “We can now tweak, innovate and create new additional products on demand, without being married to any one beverage or flavour.
“The flexibility of producing in smaller batches allows us to be incredibly competitive by keeping less of our operating capital tied up in ageing inventory.
“More of our resources can be focused on innovation and awareness of the brand which will drive sales. This new system creates several advantages over traditional models. Our production runs will remain short, which means we can move from one product to another easily. This method will reduce our costs on raw materials, shipping, storage, warehouse fees, production and co-packing.
“With this new relationship and this small investment into the Rocky Mountain Soda system, we can produce product at the same cost charged by large co-packers, but produce much smaller quantities. We can keep our margins strong, work in an organic facility and be incredibly nimble. Furthermore, with this model, we can also scale very quickly once we start adding large national retailers.”
Miller added: “We’re not like a large beverage company that just pumps out millions of cans of the same product year after year. We are constantly refining and improving our products, and for that reason we needed a more flexible and cost-effective system of production.”
© FoodBev Media Ltd 2018
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