Sports drink company BioSteel filing for creditor protection in U.S. and Canada - CBC

dalewood12

Registered User
Oct 9, 2017
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The owner of sports drink company BioSteel says it has filed for creditor protection in the U.S. and Canada and is trying to find a buyer for the business.

Ontario-based Canopy Growth, the largest cannabis company in North America, said in a press release Thursday that it has ceased funding BioSteel Sports Nutrition Inc. and that BioSteel has commenced proceedings under the Companies Creditors Arrangement Act.

Companies undergo CCAA when they seek a court's help to protect them from their creditors. That's to ensure orderly proceedings while they either restructure or wind down operations. Alongside the Canadian CCAA proceedings, the company will also undergo creditor protection under Chapter 15 of the U.S. bankruptcy code.

BioSteel was founded in Toronto in 2009 by entrepreneur John Celenza and then-NHLer Mike Cammalleri. The company has a marketing partnerships with several dozen NHL, NBA and NFL teams, and notable athletes including Connor McDavid, Mathan MacKinnon, John Tavares and recent No. 1 overall pick Connor Bedard — all of whom attended a recent training camp together.

 

Squiffy

Victims, rn't we all
Oct 21, 2006
13,624
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Toronto
Boy, I'm surprised at that, seemed like they were doing well, they are everywhere. Over-expanded?
 

Yukon Joe

Registered User
Aug 3, 2011
6,297
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YWG -> YXY -> YEG
Wow - that article is shocking.

All I knew is I saw BioSteel ads everywhere, my kids at hockey seem to like the stuff.

But yeah, turns out the revenue they're pulling in is miniscule compared to their costs, including the NHL deal. The NHL deal had Biosteel pay $12 million to the NHL in just one quarter (when the firm booked a total revenue of $24 million).

So they're firing all but 9 of their employees. So basically the firm is in the process of shutting down. If someone buys the company they'll be buying the recipe and all the IP assets, but Biosteel itself is no longer a going concern, because they're certainly not making any more of the stuff right now.


So it does seem like Biosteel, under its Cannabis owners, tried to grow too fast and compete with Gatorade/Powerade when its sales were only a fraction of those competitors.
 

eddygee

Registered User
Mar 12, 2018
904
421
BIOSTEEL FILES FOR BANKRUPTCY PROTECTION, WILL LAY OFF 181 EMPLOYEES
Sportico article sites unable to compete with Gatordae, Body Armor and Powerade.

"The sports drink was an official partner of the NHL and a handful of teams in the NHL and NBA, but faced an uphill battle against Gatorade, BodyArmor and Powerade."

I do wonder if the NHL deal was what broke them on top of the leaguewide deal they sponsored 5 or 6 teams IIRC.

BodyArmor is likely a better move they have been the in drink along with Celcius in gyms. I've never had Celcius but that stuff is everywhere. In 2014 Kobi Byant invested $6m in seed money with a 10% stake and got some fellow athletes to chip in with the investment thru the years like like Buster Posey and James Harden, Naomi Osaka, Mookie Betts and Christian McCaffrey including a Coca Cola Minority share in 2018. In 2020 Coca Cola Co. Bought the company for $8b in 2021.

NHL would be wise to call them up to see if they're interested. They a much "in" brand at the moment along with energy drink Celcius.
 
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joelef

Registered User
Nov 22, 2011
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So both power aid and gatoraid don’t want the nhl and its drink sponsor is basically a c level scam. Busch league stuff . This what happens when you “ play the name of the front” crap over marketing stars get you.
 
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Squiffy

Victims, rn't we all
Oct 21, 2006
13,624
3,351
Toronto
Wow - that article is shocking.

All I knew is I saw BioSteel ads everywhere, my kids at hockey seem to like the stuff.

But yeah, turns out the revenue they're pulling in is miniscule compared to their costs, including the NHL deal. The NHL deal had Biosteel pay $12 million to the NHL in just one quarter (when the firm booked a total revenue of $24 million).

So they're firing all but 9 of their employees. So basically the firm is in the process of shutting down. If someone buys the company they'll be buying the recipe and all the IP assets, but Biosteel itself is no longer a going concern, because they're certainly not making any more of the stuff right now.


So it does seem like Biosteel, under its Cannabis owners, tried to grow too fast and compete with Gatorade/Powerade when its sales were only a fraction of those competitors.
Ya, kids seemed to like it too at hockey. That said, not sure outside of once to hand out after a game at a tournament, I've ever bought any. I got a couple cases worth of the stuff at home from giveaways that seemed to be everywhere. I guess it's a Toronto based company so maybe I am just right in the middle of their grassroots strategy that apparently has utterly failed.
 

Dooman

Registered User
Mar 8, 2006
640
102
Was just going to post this. What a sham. This drink was not meant for prime time. Too expensive for the market it tried to take over.

NHL will have to dust off those gatorade towels and coolers again... OR coca-cola or pepsico buy the assets
Gatorade is Pepsi..... powerade is coke
 

CamPopplestone

Registered User
Sep 27, 2017
2,515
2,896
Yeah they tried to go too big. At best they'd have been able to succeed as a niche option.
Which is a shame. I actually like a few of the flavors, but only get it occasionally when it's on sale because it's too expensive. But I did like supporting a new company trying to break in.
 

TheTotalPackage

Registered User
Sep 14, 2006
7,407
5,602
BioSteel is nasty. Don't know why anyone, let alone professional athletes, would use it as a hydrating agent. The stevia extract in it leaves that disgusting aspartame taste in your mouth for hours.
 

DaveG

Noted Jerk
Apr 7, 2003
51,245
48,759
Winston-Salem NC
the market was too crowded to begin with to not have the backing of one of the big players (Pepsi or Coke). Saw this coming a mile away. They spent a ton of money trying to become the sports drink of the NHL and USMNT, among others, but when the price point is twice as much as the rest of the market and there's nothing that stands out about it from a flavor or quality standpoint then it's doomed.
 

MMC

Global Moderator
May 11, 2014
48,375
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Orange County, CA
Only time I ever tried it was when they would have tents giving it away after Ducks games, didn't hate but would never spend money on it. Not surprised they're failing.
 

AchtzehnBaby

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Mar 28, 2013
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from the cached website:

Hidden modal​

This modal has no link to it. The only way you can find or open it is by manually entering #hidden_modal in the address bar.







...











Patrick Mahomes is a 2x MVP quarterback – the most exciting and talented quarterback to come along in years. Mahomes was drafted in 2017 and took home the MVP award in 2018 and 2022. In 2019 in just one game, Mahomes recorded 443 yards and 4 touchdowns, the sixth time in his 19-game career that he had at least 300 yards and four touchdowns. Mahomes started consuming BioSteel products through his trainer, Bobby Stroupe several years ago and hasn’t stopped since.

Patrick Mahomes​

Sophia Smith, forward for the U.S. Women’s National Soccer Team, 2022 BioSteel U.S. Soccer Female Player of the year, and 2022 league MVP, is a powerhouse and the embodiment of the next generation elite athletes. We’re excited to be hydrating Sophia while she prepares for the international stage this summer, providing Clean. Healthy. Hydration.™ products to her and her fans around the globe.

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Connor Bedard represents the next generation of hockey stars. Bedard became the first player to earn exceptional status in the WHL and exceeded sky-high expectations. The top-prospect buried 51 goals and finished with 100 points during his first full season at the age of 16. We’re excited to hydrate the next generation, and look forward to working with Bedard to help show young athletes and fans why Clean. Healthy. Hydration. is essential both on and off the ice.

CONNOR BEDARD​

BioSteel is the official Sports Hydration Partner of the NHL® and the NHLPA®. BioSteel continues to bring Clean. Healthy. Hydration. to the next generation of athletes and fans across North America.

NHL®​


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Sergiño Dest​

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Fudd is entering her freshman year at the University of Connecticut and is
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AZZI FUDD​

Gleyber Torres has gone from one of baseball’s rising stars to a perennial MVP candidate. Our relationship with Torres all started through a connection we have with a trainer working for Baseball’s most celebrated franchise. We found out he had been consuming our products throughout his Tommy John rehab and fantastic rookie campaign. Anyone that knew Gleyber had nothing but very positive things to say about him. After we met with him it was very apparent he was a BioSteel athlete, through and through.

Gleyber Torres​

Ezekiel Elliott led the league in rushing yards in 2016 and 2018. Zeke has been consuming BioSteel products ever since he came into the league. America’s running back is Team BioSteel to the core.

Ezekiel Elliott​

2022 World Champion Jalen Ramsey is one of the best corners in the league. Growing up, Jalen was trained by his father who instilled in him the importance of health, nutrition, and the benefits of proper hydration. We all know Jalen loves to speak the truth, and that’s one of the many reasons why we knew he was a fit for Team BioSteel. We’re proud to be hydrating him with Clean. Healthy. Hydration.

jalen ramsey​

Andrew Wiggins has been consuming BioSteel products since his teenage years when we began sponsoring his AAU teams. The day he turned pro our phone rang and Andrew officially became a part of #TeamBioSteel.Growing up down the street from our head office, Andrew has very much been part of the fabric of our company, and will be for his entire career and beyond.

Andrew Wiggins​

Laila Edwards is a natural born scorer. After quickly climbing the ranks at USA Hockey, Edwards represented her country at the IIHF U18 Women’s World Championship, burying four goals and adding 4 assists on route to a silver medal, winning Tournament MVP, and IIHF Best Forward. We’re happy to be partnering with Laila to continue to inspire the next generation of athletes.

Laila Edwards​

Tyler Seguin is a perennial all-star and Cup champion. Tyler has been consuming BioSteel products since his junior hockey days. His personal favorites are our Grape Hydration Mix and Chocolate Recovery Protein.

tyler seguin​

Brittany Mahomes is a health & fitness trainer that loves to help others reach their goals! Playing soccer at the college and professional level, Brittany has always had a passion for strength training, wellness and overall fitness. This passion led her to BioSteel products years ago as she sought out the best in clean, healthy hydration. We’re thrilled to be adding Brittany to Team BioSteel!

BRITTANY MAHOMES​

Brooke Henderson is a Canadian professional golfer who has recorded 13 tour wins as of 2023. She has the most victories of any pro golfer on major tours in Canadian history and won her first major at just 18 years old. She was named the Canadian Press female athlete of the year for 2015, 2017 and 2018. To this day, Brooke and her sister Brittany walk every fairway and read every putt with BioSteel by their side.

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Devon Kerr is a pro goalkeeper who just wrapped up her rookie season in the NWSL. She was named Big Ten Goalkeeper of the Year in 2018 when playing at Ohio State. It’s only a matter of time before she’s starting in goal for either the Canadian or U.S team. Devon has already shown us that the best is yet to come – we're proud to have her on Team BioSteel.

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From taking golf lessons at a young age to playing volleyball at the collegiate level, Amanda Balionis always knew she wanted to be involved in sport. Amanda has quickly become one of the best in-house reporters and hosts in golf! Whether she’s flying to the next tournament or getting ready to report on Sundays, Amanda makes sure she always packs BioSteel products to stay healthy!

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Gunnar Peterson began his career as a prominent personal trainer in LA. As the former Director of Strength & Endurance for one of the most renowned pro-basketball teams, he knows how important hydration is in living a healthier life. Now, Gunnar’s client base ranges from celebrities to pro-athletes, and everyone in between. He is widely recognized for his expertise in functional training and his commitment to developing and implementing innovative fitness techniques. With over 28 years in the fitness industry, Gunnar brings tremendous knowledge and experience to #TeamBioSteel – and he truly believes in Clean, Healthy, Hydration.

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BioSteel is the Official Sports Drink of USA Hockey. USA Hockey is the governing body for organized ice hockey in the United States and is a member of the International Ice Hockey Federation. Its mission is to promote the growth of ice hockey in the U.S. BioSteel is helping to contribute to USA Hockey’s education program, specifically related to hydration and overall sports nutrition.
 

oldunclehue

Registered User
Jun 16, 2010
1,222
1,328
Can't compete against the Coke and Pepsi companies in this. Plus what does it cost for them to produce the "drink boxes" that they use vs the plastic bottles from the big companies.

I never liked the stuff and neither did my kids.

The drink boxes are likely a product of Canadian government requirements.....and cost a lot more. So another Canadian company goes down.
 

joelef

Registered User
Nov 22, 2011
1,814
675
Wait until there fanatics crap show

No, they tried to expand too fast and it burned them. They sponsored the NBA, USMNT and Patrick Mahomes but I guess they’re “little” too
They also have sponsorships with first tier mainstream brands as well unlike the nhl which is all in on biosteel
 

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