Kaival Brands Announces New Retail Distribution Agreements Providing Access to 13,500 New Locations
Kaival Brands Innovations Group (NASDAQ: KAVL) has launched the BIDI® Stick in 700 new retail locations, with plans for an additional 1,500 within 90 days, as part of distribution agreements that could reach 13,500 locations. These stores comply with youth-access prevention standards. The BIDI® Stick, a leading e-cigarette product, is designed for adult users and is currently under FDA review for marketing approval. The company aims to boost revenues following a favorable legal outcome against the FDA regarding ENDS marketing. The move reflects growing retail confidence in e-cigarettes amidst ongoing regulatory scrutiny.
- Launch of BIDI® Stick in 700 new retail locations, with potential for 13,500 total.
- Strong market position as No. 1-selling disposable ENDS device in the U.S.
- Increased retailer interest following favorable legal ruling against the FDA.
- None.
BIDI® Stick rollout activated in 700 initial new stores under agreements
GRANT-VALKARIA, Fla., March 07, 2023 (GLOBE NEWSWIRE) -- Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) ("Kaival Brands," the "Company" or "we,” “our” or similar terms), the exclusive U.S. distributor of all products manufactured by Bidi Vapor, LLC ("Bidi Vapor"), including the BIDI® Stick electronic nicotine delivery system (ENDS), which are intended for adult tobacco consumers 21 and over, announced that it has over the past few months entered into new retail distribution agreements representing potential new distribution to approximately 13,500 locations.
Under the terms of the agreements, BIDI® Stick will initially be activated in 700 locations, with another 1,500 locations expected within the next 90 days. All of the new locations meet Kaival Brand’s and Bidi Vapor’s stringent requirements for customer identification verification and youth-access prevention.
“We are excited to announce these significant new distribution agreements, totaling up to 13,500 new locations, as we look to continue the ramp up of marketing and sales activity for BIDI® Stick. Since Bidi Vapor succeeded in its merits case against the FDA vacating FDA’s marketing denial order for ENDS products in August 2022, we have seen a resurgence of interested retailers and potential distributors,” stated Eric Mosser, President and Chief Operating Officer of Kaival Brands. “While the FDA continues to move slowly in enforcing against bad actors, major retailers are showing their commitment to e-cigarettes as a category and using corporate discretion to select brands that are committed to youth-access prevention and responsible marketing of adult products. We believe our products fit squarely in this category, and we are hopeful that this positioning will lead to greater revenues for Kaival Brands during 2023.”
The BIDI® Stick, which comes in tobacco, menthol and nine other adult-oriented flavor varieties, is the No. 1-selling, self-contained, premium, and sustainable ENDS device in the United States, according to data from New York-based Nielsen. The BIDI® Stick contains tobacco-derived nicotine, is the subject of a pending U.S. Food and Drug Administration (FDA) Premarket Tobacco Product Application (PMTA), and is permissible to distribute in the United States, subject to FDA enforcement. The BIDI® Stick was developed specifically for use by adult smokers and existing adult nicotine users that are looking for a better alternative to continued smoking.
“We are excited to increase the reach of the BIDI® Stick by up to 13,500 new stores,” stated Russell Quick, president of QuikfillRx, LLC d/b/a Kaival Marketing Services, the Company’s third-party sales and marketing vendor. “These new agreements represent an immediate impact of 700 new locations to start and we believe represents a vote of confidence that retailers have in us and our products.”
ABOUT KAIVAL BRANDS
Based in Grant-Valkaria, Florida, Kaival Brands is a company focused on incubating innovative and profitable products into mature and dominant brands, with a current focus on the distribution of electronic nicotine delivery systems (ENDS) also known as “e-cigarettes”. Our business plan is to seek to diversify into distributing other nicotine and non-nicotine delivery system products (including those related to hemp-derived cannabidiol (known as CBD) products. Kaival Brands and Philip Morris Products S.A. (via sublicense from Kaival Brands) are the exclusive global distributors of all products manufactured by Bidi Vapor.
Learn more about Kaival Brands at https://ir.kaivalbrands.com/overview/default.aspx.
ABOUT KAIVAL MARKETING SERVICES
Based in Jacksonville Beach, Florida, QuikfillRx, LLC d/b/a Kaival Marketing Services (KMS) has served as the primary marketing and sales service provider for Kaival Brands since 2020. In addition to its sales force, KMS brings over 100 contracted employees dedicated to supporting Kaival Brands’ management team through its next stage of growth. KMS has used its experience and expertise in retail marketing and sales to catapult the BIDI® Stick to become the No. 1-selling disposable ENDS in the United States, according to data from New York-based Nielsen.
ABOUT BIDI VAPOR
Based in Melbourne, Florida, Bidi Vapor maintains a commitment to responsible, adult-focused marketing, supporting age-verification standards and sustainability through its BIDI® Cares recycling program. Bidi Vapor's premier device, the BIDI® Stick, is a premium product made with high-quality components, a UL-certified battery and technology designed to deliver a consistent vaping experience for adult smokers 21 and over. Bidi Vapor is also adamant about strict compliance with all federal, state and local guidelines and regulations. At Bidi Vapor, innovation is key to its mission, with the BIDI® Stick promoting environmental sustainability, while providing a unique vaping experience to adult smokers.
Nirajkumar Patel, the Company’s Chief Science and Regulatory Officer and director, owns and controls Bidi Vapor. As a result, Bidi Vapor is considered a related party of the Company.
For more information, visit www.bidivapor.com.
Cautionary Note Regarding Forward-Looking Statements
This press release and the statements of the Company’s management and partners included herein and related to the subject matter herein includes statements that constitute “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), which are statements other than historical facts. You can identify forward-looking statements by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “hopeful,” “intend,” “may,” “plan,” “position,” “should,” “strategy,” “target,” “will,” and similar words. All forward-looking statements speak only as of the date of this press release. Although we believe that the plans, intentions, and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions, or expectations will be achieved. Therefore, actual outcomes and results (including, without limitation, the impact of the Company’s new distribution agreements described herein on the Company’s future revenues) could materially and adversely differ from what is expressed, implied, or forecasted in such statements. Our business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect results, and are often beyond our control. Factors that could cause or contribute to such differences include, but are not limited to: (i) future actions by the FDA in response to the 11th Circuit Court’s decision that could impact our business and prospects, (ii) the outcome of FDA’s scientific review of Bidi Vapor’s pending PMTAs, (iii) the results of international marketing and sales efforts by Philip Morris International, the Company’s international distribution partner, (iv) how quickly domestic and international markets adopt our products, (v) the scope of future FDA enforcement of regulations in the ENDS industry, (vi) the FDA’s approach to the regulation of synthetic nicotine and its impact on our business, (vii) potential federal and state flavor bans and other restrictions on ENDS products, (viii) the duration and scope of the COVID-19 pandemic and impact on the demand for the products we distribute, (ix) general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth, (x) the effects of steps that we could take to reduce operating costs, (xi) our inability to generate and sustain profitable sales growth, including sales growth in U.S. and international markets, (xii) circumstances or developments that may make us unable to implement or realize anticipated benefits, or that may increase the costs, of our current and planned business initiatives, (xiii) significant changes in our relationships with our distributors or sub-distributors and (xiv) other factors detailed by us in our public filings with the Securities and Exchange Commission, including the disclosures under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2022, filed with the Securities and Exchange Commission on January 27, 2023 and accessible at www.sec.gov. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. Except as required under the federal securities laws and the Securities and Exchange Commission’s rules and regulations, we do not have any intention or obligation to update any forward-looking statements publicly, whether as a result of new information, future events, or otherwise.
Investor Relations:
Stephen Sheriff, Director of Communications and Administration
Ir.kaivalbrands.com
investors@kaivalbrands.com
FAQ
What is the significance of the recent rollout of the BIDI® Stick by Kaival Brands?
How many total locations will Kaival Brands distribute the BIDI® Stick to?
How does the FDA ruling affect Kaival Brands and KAVL stock?
What are the expected benefits of the new distribution agreements for KAVL?
