Page 1

freshii Freshii Inc. Announces Third Quarter 2021 Results 1 Continued restaurant sales recovery with over 10 % year over year increase in same store sales vs Q3 2020 Subsequent to the quarter , completed acquisition of majority control of health and wellness ecommerce retailer , Natura Market Subsequent to the quarter , completed 20 site Texas multi - unit deal , the largest multi - unit franchise agreement in brand history Continued digital sales momentum with Freshii's Q3 2021 mobile app sales up 79 % vs Q3 2020 Strong CPG division performance , with 75 % year over year increase in sales at two largest retail partners by sales volume vs Q3 2020 97 % of total locations now open and operating , with 8 more locations operating at end of Q3 2021 vs Q2 2021 TORONTO , Nov. 08 , 2021 ( GLOBE NEWSWIRE ) Omnichannel health and wellness brand , Freshii Inc. ( TSX : FRII ) ( " Freshii " , the " Company " or " we " ) , today announced financial results for the third quarter ended September 26 , 2021 ( " Q2 2021 " ) . -- " In Q3 , our restaurant network continued its sales recovery , with all store types showing sequential improvement vs Q2 2021 in recovering towards pre - pandemic 2019 sales levels , driven in part by continued digital momentum and our best menu innovation performance in years , " said Matthew Corrin , Chairman and Chief Executive Officer of Freshii . " Our tacos limited time offer , featuring cauliflower - based soft shell tortillas , three protein options and a host of Mexican - inspired sauces and flavours , was met with a very positive response . The premium price point , which includes protein , and significant chips and queso add - on attachment drove cheque and profitability for our restaurants . Freshii's evolved smoothie platform also contributed to the strong innovation performance , driving incremental smoothie sales mix . The evolved smoothie lineup included new flavours and add - ons and was made available in two sizes across the North American network . We saw many guests take advantage of the opportunity to ' up - size ' their smoothie and to ' add - on ' one of our premium additional ingredients . While certain challenges remain in core urban markets that have traditionally relied heavily on ' office lunch ' traffic , our suburban ' drive ' locations , which make up approximately 55 % of our North American traditional network , have recovered more than 90 % of pre - pandemic sales levels through Q3 2021. We were also encouraged to see more locations reopen this quarter as government restrictions ease in many of our major North American markets . We expect the normalization for our downtown core locations to remain in progress into H1 2022 , but overall , we are very pleased with the recovery trend of our network as a whole . We will continue to work with our franchise partners to navigate the challenges that remain , including through additional investments in sales driving and profitability focused store level initiatives - primarily by way of increased marketing investments and operating cost offsets - as we did in the third quarter . The Company has taken important steps in building its development pipeline and announced a planned 20 store deal in Texas , USA this week - the brand's largest multi - unit deal in its history . Texas is a market in which Freshii currently operates and where we believe there is significant room for additional growth . Our multi - unit partners in Texas are experienced QSR , hotel and hospitality operators , and we look forward to partnering with them to build the brand's footprint in the southern US . We also expect to open new locations at LaGuardia airport in New York and in Whistler Village in British Columbia in the coming months and are progressing active discussions with existing franchise partners about further development opportunities . Freshii's omnichannel presence in the health and wellness space has also continued to expand . Last week , Freshii completed its acquisition of a majority interest in Natura Market , a fast - growing health and wellness ecommerce retailer that had revenues of over CAD $ 19 million in the trailing twelve months ended September 30 , 2021. We have already begun to support Natura Market's impressive existing management team , which remains in place following the transaction , as we work together to continue the strong growth the company has achieved to date . Our consumer packaged goods ( or ' CPG ' ) division is also growing , with our two largest retail partners by sales volume , carrying our broadest assortr of products in dedicated Freshii branded coolers , reporting revenue growth of more than 75 % in Q3 of 2021 vs Q3 2020 and new retail partners continuing to add Freshii listings to their shelves . For example , we have recently kicked off CPG test listings with both Healthy Planet in Ontario , and Whole Foods in British Columbia . In the third quarter , Freshii also added to our CPG and nutritional gummy product lineups , launching ' Bye Bye Stress ' and ' Super Mushroom ' nutritional supplement gummies both in - restaurant and online , to go with our ACV gummy offering . Freshii's CPG team also rolled out seasonal pumpkin - spiced energii bites , tapping into the fall - themed ' pumpkin - spiced ' trend , which were available in both Freshii restaurants and on CPG retail partner shelves . " Acquisition of Natura Market On November 1 , 2021 , Freshii completed its acquisition of 60 % of the issued and outstanding common shares of Natura Market Ecommerce Inc ( " Natura " or " Natura Market " ) along with rights to purchase the remaining 40 % of Natura Market's shares through Q1 2025 . Natura Market is a rapidly growing , founder - led online retailer with a Freshii - aligned mission of making on - trend , healthy products available at scale across Canada . Natura Market had sales of over CAD $ 19 million in the 12 - month period leading up to September 30 , 2021 , representing an over 10 % increase year over year . The addition of Natura Market significantly expands Freshii's presence and capability in the delivery and digital commerce spaces . Further details on the Natura Market transaction can be found in the Company's news release , dated October 14 , 2021 , available on the investor relations section of the Company's website ( www.freshii.inc ) , and on Freshii's SEDAR profile .