Mr. Frank Zitella reports

DAVIDSTEA ESTABLISHES U.S. DISTRIBUTION PLATFORM

After a thorough review of logistics options, Davidstea Inc. has established a U.S. fulfilment platform in Chicago, positioning the company to better serve American customers and drive profitable long-term growth in the U.S. market.

Following the U.S. government's decision to eliminate the de minimis trade exemption, which allowed goods under $800 (U.S.) to enter the country without paying duties or taxes, shipping orders from Canada into the United States became more complex and costly. The resulting customs friction created shipping delays, unpredictable delivery times and a diminished consumer experience that contributed to a decline in U.S. e-commerce results.

Since late March, Davidstea began fulfilling U.S. e-commerce orders through a strategic third party logistics partner based in Chicago. The new fulfilment platform complements Davidstea's warehouse and logistics operations in Montreal, bringing inventory closer to U.S. customers, improving service levels and strengthening the company's ability to grow profitably south of the border.

"The U.S. is a core growth market for us, and this investment reflects our confidence in the long-term opportunity ahead," said Frank Zitella, president, chief financial and operating officer of Davidstea. "Establishing a fulfilment platform in Chicago lets us serve American customers better today while building the operational foundation to scale profitably over time. A seamless delivery experience drives customer acquisition, repeat purchasing and loyalty, and we are now positioned to deliver it."

The updated fulfilment model supports the company's continued growth in the U.S. market while strengthening its overall supply chain. The transition is complete, and customers can order a curated selection of Davidstea tea and gifts on the Davidstea website, with no disruption to existing orders.

About Davidstea Inc.

Davidstea offers a specialty branded selection of high-quality proprietary loose-leaf teas, prepackaged teas, tea sachets, tea-related accessories and gifts through its e-commerce platform and the Amazon Marketplace, its wholesale customers which include over 4,000 grocery stores and pharmacies, over 1,500 convenience stores in Canada, and over 900 grocery stores in the United States, as well as 21 company-owned stores across Canada. It offers primarily proprietary tea blends that are exclusive to the company, as well as traditional single-origin teas and herbs. The team's passion for and knowledge of tea permeate the company's culture, and are rooted in an excitement to explore the taste, health and lifestyle elements of tea. With a focus on innovative flavours, wellness-driven ingredients and organic tea, the company launches seasonally driven collections with a mission of making tea fun and accessible to all. The company is headquartered in Montreal, Canada.