Kaival Brands Signs Agreement with Prominent National Broker, Increasing Potential Distribution by Upwards of 40,000 Retail Stores
Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) has announced a significant growth initiative to expand the distribution of its BIDI® Stick electronic nicotine delivery system. The company has entered into a sales broker agreement aimed at increasing access to over 40,000 new retail locations, including dollar, grocery, and mass-merchandisers. The BIDI® Stick, recognized as the No. 1-selling ENDS device in the U.S., offers various adult-oriented flavors and is currently under a pending Premarket Tobacco Product Application (PMTA). This strategic move is expected to enhance revenue opportunities, reinforcing the company's position in the vaping market.
- Entered a new sales broker agreement to expand distribution to over 40,000 new locations.
- BIDI® Stick is the No. 1-selling self-contained ENDS device in the U.S.
- Potential revenue growth from diversification into retail channels beyond convenience stores.
- Pending PMTA could impact future sales depending on FDA review outcomes.
Kaival Brands seeking to rapidly expand distribution and accelerate sales of BIDI® Stick
GRANT-VALKARIA, Fla., March 09, 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, today announced that it has entered into a sales broker agreement with a prominent national broker to expand access to Bidi Vapor products from its current foundation of convenience-store distribution into new retail channels, including dollar, grocery and mass-merchandisers.
“As we look to push distribution into more channels beyond the convenience-stores, we are excited to announce a new agreement that gives us potential access to over 40,000 new locations,” said Eric Mosser, President & Chief Operating Officer of Kaival Brands. “We believe this agreement, along with our recent announcement of other new distribution agreements, further validates our reputation as a good actor providing adult consumers with the highest quality vape experience possible, and we look forward to working with all of our commercial channel partners to expand our revenue opportunities.”
The BIDI® Stick, which comes in tobacco, menthol and nine other adult-oriented flavor varieties, is the No. 1-selling, self-contained 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 Premarket Tobacco Product Application (PMTA), and is permissible to distribute in the United States, subject to Food and Drug Administration (FDA) enforcement.
“We are excited to further increase the reach of Bidi Vapor and its premium vaping device, the BIDI® Stick, into potentially more distribution opportunities throughout multiple retail channels,” stated Russell Quick, president of QuikfillRx, LLC d/b/a Kaival Marketing Services, the Company’s third-party sales and marketing vendor. “With our feet firmly in the convenience-store space, it is time not only to grow our existing footprint but to extend into more channels, like dollar and grocery stores, that meet our robust identification verification and youth access prevention requirements.”
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,” “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 results of the Company’s new sales broker agreement as described herein and the impact on the Company’s revenues and results of operations) 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 success of our agreement with Philip Morris International, (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
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