Flow Beverage raised millions for fancy water — lenders took it all in 2025

Flow Beverage Corp was founded in 2013 by Nicholas Reichenbach after he attended Burning Man and saw an opportunity in premium alkaline spring water. The Canadian company differentiated itself with flavoured sparkling water in distinctive Tetra Pak cartons, positioning as a healthier, more sustainable alternative to plastic bottles. It secured distribution across North America in Whole Foods, Walmart, Loblaws, and other major retailers, and gained celebrity backing.

The company went public on the Toronto Stock Exchange in July 2021 with ambitions to disrupt the $200+ billion global water market. It invested heavily in brand marketing, shelf-space fees, and production capacity, spending far more than it earned from sales. Revenue peaked but the company never turned a profit — losses widened each quarter even as sales grew.

By mid-2025, the financial strain became untenable. Q2 2025 revenue fell 49% year-on-year to C$3.6 million, driven by 'working capital constraints' that disrupted production. Net losses were C$10.4 million for the quarter alone. The company had taken on secured loans from NFS Leasing Canada and RI Flow, and when it defaulted, the lenders issued demand letters and notices of intention to enforce security under Canada's Bankruptcy and Insolvency Act.

On August 22, 2025, CEO Nicholas Reichenbach departed. By September, Flow entered a support agreement to transfer substantially all of its assets to the lenders in exchange for extinguishing its debt. A receivership order was granted, Richter was appointed receiver, and the business was handed over to creditors. The company's remaining liabilities were wound down under court supervision. The Flow brand continued under new ownership, but the original founders and investors lost everything.