LQR House Inc. Signs Memorandum of Understanding with Hangzhou GSY Biotechnology to Develop Functional, Wellness-Oriented Beverage Line

Strategic partnership pairs LQR House's North American commercial infrastructure with GSY's proprietary fermentation and strain technology

MIAMI BEACH, FL / ACCESS Newswire / May 6, 2026 / LQR House Inc. (the "Company" or "LQR House") (NASDAQ:YHC), a niche ecommerce platform specializing in the spirits and beverage industry, today announced that it has entered into a Memorandum of Understanding (the "MOU") with Hangzhou GSY Biotechnology Co., Ltd. ("GSY"), a Chinese biotechnology company specializing in fermentation science, strain research, and product development. The MOU was executed on behalf of LQR House by Lijun Chen, Chairman.

The new partnership between LQR House and GSY is focused on the joint development, promotion, and distribution of low-alcohol, low-sugar, fermented, and wellness-oriented beverages, a category responding to accelerating consumer demand for lighter, cleaner, functional beverage formats across North America and select international markets.

Under the terms of the MOU, GSY will lead product development, including strain selection, formula development, fermentation process optimization, sample production, and manufacturing coordination at commercial scale, while LQR House will lead the commercial side of the partnership, including market strategy, brand positioning, distribution, pricing, regulatory coordination, and channel development. Initial commercialization is expected to focus on the North American market, where LQR House and its portfolio companies, including SWOL Holdings, have established sales infrastructure and an expanding distribution network, with subsequent expansion into additional international markets as the product line scales. The parties intend to share revenue equally on products developed and brought to market through this collaboration.

The functional beverage category, which includes products positioned around gut health, natural energy, and stress relief, has become one of the fastest-growing segments of the global beverage industry. According to industry reports from Mordor Intelligence, the global functional beverage market is forecast to grow from approximately $151.8 billion in 2025 to $239.95 billion by 2031, representing a compound annual growth rate of 7.93%. Consumer demand for lower-ABV and "better-for-you" formats is reshaping market share within the broader beverage industry as well. According to data published by IWSR, no-alcohol volumes grew at a 28% CAGR in the U.S. between 2019 and 2024, and low-alcohol at a 7% CAGR, while full-strength alcohol volumes declined at a 1% compound annual rate over the same period. IWSR projects no-alcohol volumes will continue expanding over the coming years.

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