Else Nutrition to relaunch Canadian business in 2026

Executive Summary

• Else Nutrition Holdings Inc. plans to relaunch its Canadian market in early 2026, shifting from a third-party distributor to a direct distribution model to improve margins and commercial control.
• The strategic shift follows the termination of the previous distributor relationship in July 2025, which was driven by temporary out-of-stock conditions and reduced marketing investment that caused revenue declines in late 2024 and early 2025.
• The company has secured direct vendor approval with Canada's largest national retailer, with distribution expected to resume in early 2026, and projects ~$500,000 in first-year Canadian revenue.

Key Details

• Relaunch Timeline: Early 2026
• Distribution Model Change: Transitioning from a local distribution partner to a direct distribution model to achieve higher margins and better commercial control.
• Retailer Status: Approved as a direct vendor with Canada's largest national retailer; product distribution expected to resume in stores in early 2026.
• Revenue Projections: Approximately $500,000 in Canadian revenue expected in the first year following relaunch.
• Long-Term Target: Canada projected to represent 10% to 15% of U.S. sales over time.
• Historical Performance: Canadian revenues surpassed $1 million in 2023, supported by distribution across most major national retail chains. Revenues declined during Q4 2024 and H1 2025 due to temporary out-of-stock conditions and reduced marketing investment.
• Distributor Termination: Previous distributor relationship terminated in July 2025.
• Expansion Initiatives: Advancing discussions to re-establish relationships with additional national retailers, onboard new retail partners, appoint a local distributor for specialty and independent retail channels, and expand e-commerce presence via Amazon, direct-to-consumer platform, and additional online marketplaces.

Notable Quotes

• "We have always viewed Canada as a strategically important market," said Hamutal Yitzhak, chief executive officer and co-founder of Else Nutrition. "Our return to Canada under a direct-to-retail model positions us for more sustainable growth, improved margins and stronger execution. This relaunch aligns with our broader expectation of accelerating revenue growth beginning in 2026."