Ms. Sarah Segal reports

DAVIDSTEA OPENS FLAGSHIP STORE AT SQUARE ONE SHOPPING CENTER IN MISSISSAUGA

Davidstea Inc. has opened a new store at the Square One Shopping Centre in Mississauga, Ontario's largest shopping centre. The flagship store showcases a full assortment of loose-leaf teas, signature collections and the company's unique tea bar offering.

Following the store opening in Oshawa Centre in June, this new Square One location strengthens Davidstea's presence in the Greater Toronto Area and represents its seventh location in Ontario. The company also plans to open stores at the Southgate Centre in Edmonton and the Metropolis at Metrotown in Burnaby, B.C., in the fall, expanding its store count to 25 across Canada by the end of the fiscal year.

"We are delighted to bring the full Davidstea experience to consumers at Square One with our premium tea collections, wide assortment of accessories and expert recommendations from our tea guides," said Sarah Segal, chief executive officer and chief brand officer of Davidstea. "Equally important, we are delivering against our store-led growth strategy to reach 25 stores by the end of the fiscal year. Achieving this milestone is highly strategic for the company because new stores not only drive retail sales, but they also serve as brand billboards and demand drivers for our tea products across all sales channels. As we've seen with our recent openings, each new store also creates a measurable spillover effect, lifting sales in our e-commerce and wholesale channels in the surrounding market."

"Square One reflects the disciplined, results-driven approach behind our store-led growth strategy," said Frank Zitella, president and chief financial and operating officer of Davidstea. "Our new stores are on track to pay back their investment within 18 months, supported by a strong four-wall contribution margin and overall economics that let us keep funding growth while strengthening our balance sheet."

Square One joins Davidstea's growing portfolio of malls in Ontario, including CF Toronto Eaton Centre and CF Sherway Gardens in Toronto, Limeridge Mall in Hamilton, CF Rideau Centre in Ottawa, Masonville Place in London, and the Oshawa Centre.

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, as well as 23 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 permeates the company's culture and is 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.

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