Fit Soda Now Carried in Over 1,100 Food Lion Supermarkets in the Mid-Atlantic and Southeastern Regions of the United States

After announcing placements of Fit Soda™ in well-known regional grocery chains such as HEB and Sprouts, Koios is pleased to announce that its Fit Soda™ functional beverage is now available in all Food Lion supermarkets, a chain which operates more than 1,100 grocery stores in the eastern United States. As the sugar-free beverage category continues to grow, Coca-Cola recently announced its prediction that its "Coke Zero Sugar" variety will be the firm's biggest driver of growth in 2021 and beyond. Based on these industry trends, Koios' objective is to strategically grow the market presence of Fit Soda™, which sold approximately 700,000 units in 2020, its first full calendar year on the market.

Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the "Company" or "Koios") is pleased to announce that as of Monday, May 10, 2021 all four flavours of Fit Soda ™ are being carried in more than 1,100 supermarkets operated by Food Lion LLC ("Food Lion"), a multistate grocery chain based in Salisbury, North Carolina. Since November 2020, the Company has placed its Fit Soda ™ functional beverage product with several other regional chains across the United States to include HEB (as announced in a November 4, 2020 press release), all three banners of Massachusetts-based Roche Bros. (as announced in a February 24, 2021 press release), and Sprouts Farmers Market (as announced in a March 4, 2021 press release). Approximately 700,000 units of Fit Soda ™ were sold during the product's first full calendar year of retail sales in 2020 between retail placements in grocery and foodservice outlets, as well as direct-to-consumer sales through the Koios online store. With the addition of Fit Soda ™ to all 1,100 locations of Food Lion across ten U.S. states, the Company believes there is significant opportunity for Fit Soda ™ to have its best year yet in 2021.

Food Lion was founded in 1957 as a single grocery store in North Carolina, later adding new locations across the state before being acquired by Delhaize Group of Belgium in 1974, whose successor Ahold Delhaize remains Food Lion's parent. The chain's 1,100 stores are located in ten states in the Mid-Atlantic and Southeastern regions of the United States, employing approximately 82,000 staff members. As a responsible corporate citizen, Food Lion boasts a recycling rate of nearly 80% and has donated more than 750 million meals since 2014 through its Food Lion Feeds program, which has pledged to donate 1.5 billion meals by 2025. Uniquely, Food Lion has been granted the Environmental Protection Agency's Energy Star Partner of the Year award more than any other U.S. company, having earned the recognition for 20 consecutive years since joining the program in 2001 1 . In 2014, Food Lion launched a campaign in which it solicited name suggestions for its "house brand" soft drink offerings such as root beer, ginger ale, sodas, and fruit punch 2 . The Company believes that this initiative could potentially have been an early indicator of an intent to increase the presence of beverage products in its stores besides those made by incumbent players in the beverage industry.

More information about Food Lion, including its supermarket locations in DE, GA, KY, MD, NC, PA, SC, TN, VA, and WV can be found on its website: https://foodlion.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0340e6b3-d52d-41a4-9bc4-04b8e09fb817 .

Readers using news aggregation services may be unable to view the media above. Please access SEDAR for a version of this press release containing all published media.

Earlier in 2021, the Chief Executive Officer of beverage giant Coca-Cola stated that he anticipates Coke Zero Sugar will be the firm's biggest driver of growth in 2021 and beyond 3 . Coke Zero Sugar is part of Coca-Cola's growing portfolio of nearly 250 reduced-sugar and no-sugar beverages offered in the United States 4 , as a revision to Coke Zero which has greater taste similarity to the flagship Coca-Cola beverage, while still containing no sugar or calories. As the interest in these attributes among consumers in the United States continues to grow, the Company intends to strategically position Fit Soda ™ through its retail placements in chains such as Food Lion based on its selling points as a beverage product with unique benefits ( e.g. , BCAAs and electrolytes) in addition to all four of its flavours having zero calories and no sugar.

Koios Chief Executive Officer Chris Miller commented, "In just over six months, Fit Soda ™ has been placed in regional grocery chains which cover many key areas of the United States that we believe could collectively contribute to building a national brand, as sugar-free and zero-calorie soft drinks continue to gain popularity at the macro level. In addition to their reach in the eastern United States, Food Lion is a source of inspiration for us in terms of their sustainable practices which are a high priority for us since we began to launch in-house production earlier this year. We look forward to working with Food Lion to see how Fit Soda ™ performs in their supermarkets as we aim to make 2021 a prosperous year for our beverage products."

Sources

1 - https://newsroom.foodlion.com/quick-facts

2 - https://www.wbtv.com/story/25282574/food-lion-wants-customers-to-try-and-name-soft-drinks-prizes-awarded/

3 - https://www.cnbc.com/2021/02/19/coca-cola-zero-sugar-will-be-the-companys-biggest-source-of-growth-in-2021-ceo-says.html

4 - https://www.coca-colacompany.com/faqs/whats-the-dfference-between-coke-zero-and-coke-zero-sugar


On behalf of the Board of Directors of the Company,

KOIOS BEVERAGE CORP.

"Chris Miller"

Chris Miller, CEO, and Director

THE CANADIAN SECURITIES EXCHANGE (CSE) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.

About Koios Beverage Corp.

The Company is an emerging functional beverage company which has an available distribution network of more than 4,400 retail locations across the United States in which to sell its products. Koios has relationships with some of the largest and most reputable distributors in the United States, including Europa Sports, Muscle Foods USA, KeHE, and Wishing-U-Well. Koios uses a proprietary blend of nootropics and natural organic compounds to enhance human productivity without using harmful chemicals or stimulants. Koios products have been shown to enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity. Its ingredients are specifically designed to target brain function by increasing blood flow, oxygen levels and neural connections in the brain.

Koios produces one of the only drinks in the world infused with MCT oil. MCT oil is derived from coconuts and has been shown to help the body burn fat more effectively, create lasting energy from a natural food source, produce ketones in the brain, allowing for greater brain function and clarity, support healthy hormone production and improve immunity. For more information, please visit our website: https://www.koiosbeveragecorp.com .

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking information and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this news release includes statements regarding: Potential sales performance of Fit Soda ™ in Food Lion stores and sustained in-store presence in all 1,100+ locations. The forward-looking information reflects management's current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes to the growth and size of the functional beverage markets; and (iii) other factors beyond the control of the Company. The Company operates in a rapidly evolving environment. New risk factors emerge from time to time, and it is impossible for the Company's management to predict all risk factors, nor can the Company assess the impact of all factors on Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. The forward-looking information included in this news release are made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

The statements in this news release have not been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking the Company's products will vary from person to person. No claims or guarantees can be made as to the effects of the Company's products on an individual's health and well-being. The Company's products are not intended to diagnose, treat, cure, or prevent any disease.

This news release may contain trademarked names of third-party entities (or their respective offerings with trademarked names) typically in reference to (i) relationships had by Koios with such third-party entities as referred to in this release and/or (ii) client/vendor/service provider parties whose relationship with Koios is/are referred to in this release. All rights to such trademarks are reserved by their respective owners or licensees.


For further information, please contact: Gina Burrus 844-255-6467 gina@koiosbeveragecorp.com

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A State-by-State Guide to Cannabis in Australia

Australia federally legalised medicinal cannabis in 2016, and Australia's cannabis market has seen major growth since then.

Medical cannabis approvals were up by 120 percent in the first half of 2023 compared to the same period in 2022. Statista forecasts that Australian cannabis revenue will reach AU$3.73 billion in 2024 and grow at an annual rate of 3.22 percent, culminating in market volume worth AU$4.53 billion by 2029.

However, Australia’s cannabis industry is still young. Despite there being a strong case for a regulated market, which was outlined in a July 2024 report by the Penington Institute, recreational use is not legal and medical access remains limited and regulated.

Medical cannabis patients have access to various forms of the drug, including flower, oils and tinctures. However, only two medicinal cannabis products, Sativex and Epidyolex, are registered with the Therapeutic Goods Administration, and none are subsidised through the country’s Pharmaceutical Benefits Scheme. Patients who want access to medicinal cannabis must go through special pathways, and doctors who want to prescribe medicinal cannabis have to apply to do so.

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Understanding trends in the cannabis industry is paramount for investors eyeing a market with steady growth potential, but the landscape is complex as products and regulations continue to evolve.

Consumption habits are changing as edibles, vaping and THC beverages gain traction, especially among younger users, and cannabis companies are adapting their offerings to meet shifting demand.

Meanwhile, regulatory uncertainty, particularly surrounding the future of the US Farm Bill and state-level restrictions on hemp-derived cannabinoids, continues to challenge the market.

Despite these headwinds, production data and long-term growth forecasts suggest the cannabis industry remains on a promising — albeit turbulent — path. Read on for more on key trends to watch in 2025.

Consumption methods evolving post-legalization

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While smoking remains the dominant method of cannabis consumption, a recent report from the Centers for Disease Control and Prevention highlights the growing popularity of edibles, vaping and dabbing.

The report notes that vaping and dabbing are particularly pronounced among younger adults.

A separate study published by the American Medical Association and funded in part by the Canadian Institutes of Health Research also points to how product preferences have changed among Canadian users since legalization in 2018.


The study indicates that while the use of flower, cannabis concentrates, oil, tinctures and topicals has decreased during that time, the use of vape cartridges, edibles and beverages has increased.

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In early 2020, Tilray launched a lineup of confectionery, wellness products and beverages through its subsidiary, High Park; Canopy Growth (TSX:WEED,NASDAQ:CGC) made a similar move. These companies gradually brought their products to the US as more states legalized cannabis for medical and/or recreational use.

Today, established cannabis brands typically offer edibles and beverages alongside their other products. Organigram Global (TSX:OGI,NASDAQ:OGI) is one of the newest US entrants, with its April acquisition of Collective Project providing immediate access to the US hemp-derived THC beverage market.

Growing awareness of health and wellness, potentially amplified by the pandemic-led adoption of health trackers, appears to be making an impact on the alcoholic beverage market.

A 2023 Gallup poll reveals a two decade decline in alcohol consumption, particularly among younger adults, suggesting a shift towards more health-conscious lifestyles within this demographic.

Craft beer production declined by 4 percent year-on-year in 2024, according to data collected by the Brewers Association. This marked the largest drop in the industry's history, excluding the pandemic. For small, independent craft breweries, 2024 marked the third consecutive year of declining production. A drop in the number of operating small breweries last year provides further evidence of this trend, with 501 closures in 2024 versus 434 openings.

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The legalization of industrial hemp — defined as cannabis with a THC concentration of 0.3 percent or less — through the 2018 Farm Bill led to initial investment and optimistic projections for CBD wellness products and various industrial applications. The sector’s rapid evolution also brought the rise of hemp-derived intoxicating cannabinoids, creating a market that presented both opportunities and complexities for participants.

However, after an initial boom, a lack of infrastructure and clearly defined regulations for CBD, as well as state-level variations and market oversupply, ultimately contributed to a quick retraction.

2024 was a pivotal year for the US hemp industry, as the hemp-related provisions of the 2018 Farm Bill — originally set to expire in September 2023, but extended to December 31, 2024 — created an urgent need to address critical issues like THC limits and the regulation of novel hemp-derived cannabinoids. A major point of contention was the proposed shift from defining hemp based on Delta-9 THC concentration (0.3 percent or less) to “total THC,” which includes THCA.

This change had the potential to significantly impact farmers and processors, as many hemp varieties that are compliant under the Delta-9 THC rule could exceed the 0.3 percent limit when THCA is included.

Various bills and amendments were proposed in 2024 as part of the Farm Bill discussions, each with different approaches to regulating hemp. Separate regulatory frameworks for industrial hemp and hemp grown for cannabinoids were suggested, and many states took their own action, leading to a patchwork of regulations and even outright bans.

Despite challenges, data from the US Department of Agriculture suggests signs of recovery.

The department's annual National Hemp Report from 2024 points to an 18 percent increase in industrial hemp production value between 2022 and 2023, with output growth seen in specific sectors like floral (18 percent), fiber (133 percent) and seed hemp (414 percent). The 2025 report from the Department of Agriculture indicates further expansion, with notable increases observed in both acreage (up 64 percent from 2023) and value (46 percent).

The 2024 Farm Bill ultimately did not pass, and right now the hemp industry is operating under a temporary extension of the 2018 Farm Bill under the American Relief Act of 2025, signed into law on December 21, 2024.

The 2018 Farm Bill is now set to expire on September 30, 2025.

While analysts for Markets and Markets project that the North American hemp industry will grow at a CAGR of 22.4 percent and ultimately reach a valuation of US$30.24 billion by 2029, the future of the industry will be heavily influenced by the outcome of the ongoing Farm Bill discussions.

US cannabis legalization remains stalled

Although there is clear demand for cannabis products, the now-defunct rescheduling process in the US is likely to continue casting a shadow of uncertainty over the industry's long-term trajectory.

Legal and procedural delays, including allegations of improper conduct and bias within the US Drug Enforcement Administration (DEA), led to hearing cancellations, and the new administration of US President Donald Trump has brought leadership changes to key agencies like the DEA and the Department of Justice.

Terry Cole, who Trump nominated to be DEA administrator on February 11, has a history of opposing cannabis legalization in the country. Similarly, Pam Bondi, Trump’s pick to lead the justice department, staunchly opposed a movement to legalize medical cannabis during her tenure as Florida’s attorney general.

While there have been bipartisan efforts in Congress to end federal cannabis prohibition and establish regulations for eventual legalization, the DEA’s actions and statements indicate a potential stall or reversal of progress.

In addition to that, new research is adding complexity to the debate.

A study published in the American Journal of Psychiatry this past March highlights an association between the use of high-potency cannabis strains and increased risks of psychosis, a factor that may not have been fully considered by the Department of Health and Human Services. As stronger cannabis strains become more widely available, a reassessment of their potential health risks may be required.

Investor takeaway

While the cannabis industry holds promise for growth and innovation, investors must remain acutely aware of the regulatory uncertainties and market volatility that will undoubtedly shape its trajectory in the years to come.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

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The country's medical cannabis market has been steadily expanding in size and scope. A Penington Institute report shows that Australians spent approximately AU$400 million on medicinal cannabis in the first half of 2024, 72 percent higher than the AU$234 million they spent over the entirety of 2022.

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