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GURU Organic Energy Files $15 Million Lawsuit Against Pepsi for Breach of Distribution Agreement & Misuse of Confidential Product Information
KEY HIGHLIGHTS GURU has filed a Statement of Claim in the Ontario Superior Court of Justice ...
About this update from Guru Organic Energy Corp
[{"type":"text","content":"GURU Organic Energy Files $15 Million Lawsuit Against Pepsi for Breach of Distribution Agreement & Misuse of Confidential Product Information GURU will also file Competition Tribunal Application and contest Pepsi’s $4.4 Million Lawsuit\nKEY HIGHLIGHTS GURU has filed a Statement of Claim in the Ontario Superior Court of Justice seeking $15 million in damages against The Pepsi Bottling Group (Canada) ULC (“Pepsi”), plus recovery of profits from Pepsi’s competing “Rockstar Island Bliss” product and recovery of $164,753 in unpaid receivables.GURU’s claim alleges breaches of the parties’ Distribution Agreement, including Pepsi’s failure to provide “Fair Share” of Shelf in favour of PepsiCo-owned and PepsiCo-affiliated competing brands, withholding of GURU inventory from retailers during the transition period, and breach of confidence in relation to GURU’s confidential product information. GURU’s claim includes the additional recovery of profits from the Rockstar Island Bliss product, which will be determined through the court process.GURU intends to make an application to the Canadian Competition Tribunal requesting an inquiry into Pepsi’s conduct as a dominant distributor in the Canadian non-alcoholic beverage market. In particular, in respect of Pepsi having leveraged GURU’s market presence and trade investments to expand its own shelf allocation, which was then disproportionately assigned to competing Pepsi-affiliated brands.Pepsi has filed its own separate lawsuit against GURU claiming approximately $4.4 million for post-termination payables. GURU intends to fully contest this claim and, even if any amounts were awarded to Pepsi, no additional expense or liability beyond amounts already recorded in GURU’s financial statements for its 2025 fiscal year is expected.GURU’s transition to a direct distribution model is now complete and the Company’s business operations are now stable and independent of the outcome of this litigation.GURU has delivered three consecutive EBITDA-positive quarters and record Q1 revenue, demonstrating both the strength of the GURU brand and the value being held back under the former distribution arrangement. MONTRÉAL, April 20, 2026 (GLOBE NEWSWIRE) -- GURU Organic Energy Corp. ...