Guru Organic Energy sues Pepsi

Guru Organic Energy files a lawsuit against The Pepsi Bottling Group (Canada) in the Ontario Superior Court of Justice seeking damages of $15 million.

Guru alleges Pepsi violated a distribution agreement the two signed in 2021. Per the agreement, Pepsi was to be Guru’s sole distributor in Canada for 10 years. On Nov. 22, 2024, Pepsi sent a without-cause notice of termination of the distribution agreement, effective May 22, 2025.

“When we entered into our agreement with Pepsi’s Canadian distribution arm in 2021, we did so in good faith and invested significantly in the partnership. Our transition back to direct distribution, which required significant effort and investment, delivered three consecutive quarters of positive adjusted EBITDA and a record Q1 performance, demonstrating both the strength of the Guru brand and the value that was being held back under the former distribution arrangement. Filing this claim is a matter of defending shareholder value on a set of issues we have attempted to resolve privately,” said Carl Goyette, president and CEO, Guru.

Guru also alleges Pepsi removed Guru products from designated shelves in certain stores, ceased delivery of Guru products to others, and generated “significant” out-of-stock conditions, while expanding their own shelf entitlements.

Additionally, Guru accuses that the Island Bliss beverage by Pepsi-owned Rockstar brand is similar to Guru’s Island Breeze beverage. Per the lawsuit, Guru disclosed to Pepsi, on a confidential basis and in accordance with the distribution agreement’s product approval process, the full specifications of the Island Breeze product. Weeks before Island Breeze’s launch, the lawsuit alleges Pepsi’s Rockstar brand released the competing Island Bliss product without warning Guru.

Pepsi has also filed a Statement of Claim in the same Court seeking approximately $4.4 million for post-termination payables. Guru intends to contest Pepsi’s claims.