Kaival Marketing Services Hires Former Swisher International VP of Sales
Kaival Brands Innovations Group has appointed Dean Simmons as Senior Vice President of Sales and Corporate Development at Kaival Marketing Services (KMS). This strategic hire aims to enhance revenue growth potential following a favorable court ruling regarding Bidi Vapor's flagship product, the BIDI® Stick.
With extensive experience in sales at Swisher International, Simmons' leadership is anticipated to accelerate market penetration and expand retail partnerships. The collaboration with KMS is underlined by a three-year performance-based compensation agreement tied to revenue targets up to $180 million.
- Dean Simmons' extensive industry experience may significantly enhance KMS's sales capabilities.
- The legal victory allows continued marketing of the BIDI® Stick, enabling potential revenue growth.
- The three-year extension agreement with KMS includes performance-based incentives up to $180 million.
- Reliance on KMS for sales growth could pose risks if performance does not meet expectations.
- Dependence on regulatory outcomes from the FDA could impact future sales and operations.
Kaival Brands’ marketing and sales vendor hires industry veteran Dean Simmons as part of the drive to maximize revenue growth potential
GRANT, Fla., Dec. 07, 2022 (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 vapor products manufactured by Bidi Vapor, LLC ("Bidi Vapor"), which are intended for adults 21 and over, today announced that Kaival Marking Services (“KMS”), the third-party vendor responsible for executing Kaival Brands’ marketing and sales strategies, has hired Dean Simmons, a former Vice President of Sales of Swisher International, in preparation for an expected resurgence of revenue growth following a pivotal legal victory for Bidi Vapor this past summer.
Mr. Simmons will join KMS as the Senior Vice President of Sales and Corporate Development, effective immediately. During his time at Swisher, a major other tobacco products (OTP) manufacturer, Mr. Simmons was responsible for leading Swisher’s national sales department, calling on wholesale and retail accounts throughout the convenience, mass-merchandisers, drug, grocery, and tobacco-outlet retail channels. His team deployed the Jacksonville, Florida-based manufacturer’s flagship brands, including Swisher Sweets, BLK, Optimo and Goodies.
Simmons joins a sales team at KMS that includes Todd Wheeler, a former top sales executive for Reynolds American Inc. (RAI), Winston-Salem, N.C. Wheeler was with RAI for 16 years before becoming national sales director for KMS in 2000. While at RAI, Wheeler was senior division manager for trade marketing. In that position, Wheeler oversaw independent and account outlets to deliver both volume and share targets. Successful brand launches included Camel SNUS, VELO, VUSE Vapor portfolio.
The expanded sales and marketing capability at KMS comes as Kaival Brands and KMS are gearing up for anticipated revenue growth. As previously reported, on August 23, 2022, the 11th Circuit Court of Appeals overruled the Food and Drug Administration’s (the “FDA”) marketing denial order related to Bidi Vapor’s flagship product, the BIDI® Stick electronic nicotine delivery system (“ENDS”). That decision has allowed Bidi Vapor to continue to market (through Kaival Brands and KMS) all flavor varieties of the BIDI® Stick in the United States. All ENDS product on the market today that do not have marketing authorization from FDA are subject to enforcement, at the FDA’s discretion.
Eric Mosser, President and Chief Operating Officer of Kaival Brands, stated, "We applaud KMS on strengthening their robust and accomplished marketing and sales team by securing a top talent in the industry. KMS’s hiring of Mr. Simmons brings Kaival Brands more ability to rapidly grow sales, so we look forward to all that Dean will achieve towards the goals set before KMS and contribute to our overall success.”
“Adding Dean will allow KMS to maximize its market penetration potential quickly with several new retail customers that have been waiting to sell BIDI® Stick,” said Russell Quick, President of KMS, Jacksonville Beach, Fla. “Dean’s extensive leadership background in OTP, as well as his connections with top accounts here in the U.S., make him a valuable asset to our growing sales team.”
Mr. Simmons stated “I am excited to join the KMS/Kaival Brands team and bring my expertise in this field to expand the market reach of BIDI® Stick. I will look to further grow what KMS has started by not only introducing BIDI® Stick to new accounts, but expanding contacts within existing accounts leveraging the background and relationships I have built up over the years.”
As previously reported, on November 15, 2022, Kaival Brands reached a three-year extension agreement with KMS to provide marketing and sales services for Kaival Brands. Potential compensation for KMS includes performance-based common stock option awards from Kaival Brands that can vest annually based on total net revenues and profit margins achieved by Kaival Brands from KMS’s efforts over the term of the agreement, with a maximum vesting to occur upon achievement of
ABOUT KAIVAL BRANDS
Based in Grant, Florida, Kaival Brands is a company focused on growing and incubating innovative and profitable products into mature and dominant brands in their respective markets. Our vision is to develop internally, acquire, own, or exclusively distribute these innovative products and grow each into dominant market-share brands with superior quality and recognizable innovation. Kaival Brands is the exclusive U.S. distributors of all vapor products manufactured by Bidi Vapor. Philip Morris Products S.A., via license from Kaival Brands International, LLC, a
Learn more about Kaival Brands at https://ir.kaivalbrands.com/overview/default.aspx.
ABOUT KAIVAL MARKETING SERVICES
Based in Jacksonville Beach, Florida, Kaival Marketing Services 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. Kaival Marketing Services 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.
ABOUT BIDI VAPOR
Based in Melbourne, Florida, Bidi Vapor maintains a commitment to responsible 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 medical-grade 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, owns and controls Bidi Vapor. As a result, Bidi Vapor is considered a related party.
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 anticipated benefits (i) to the Company’s future sales and other results of operations of the August 2022 11th Circuit Court of Appeals decision, (ii) of the Company’s sales and marketing agreement with KMS, and (iii) KMS’ hiring of Dean Simmons, each as described herein) 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 success of our agreement with Philip Morris International, (iii) how quickly domestic and international markets adopt our products, (iv) the scope of future FDA enforcement of regulations in the ENDS industry, (v) the FDA’s approach to the regulation of synthetic nicotine and its impact on our business, (vi) potential federal and state flavor bans and other restrictions on ENDS products, (vii) the duration and scope of the COVID-19 pandemic and impact on the demand for the products we distribute, (viii) general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth, (ix) the effects of steps that we could take to reduce operating costs, (x) our inability to generate and sustain profitable sales growth, including sales growth in the international markets, (xi) 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, (xii) significant changes in our relationships with our distributors or sub-distributors and (xiii) 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, 2021, filed with the Securities and Exchange Commission on February 16, 2022 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 and Media Relations:
Stephen Sheriff, Director of Communications and Administration
ir.kaivalbrands.com
investors@kaivalbrands.com
FAQ
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