Kona Gold Beverages, Inc. Acquires Surge Distribution LLC from Loud Beverage Group, Inc. (LBEV)

Rhea-AI Summary

Kona Gold Beverages, Inc. acquires Surge Distribution from Loud Beverage Group, Inc., with Surge Distribution anticipating achieving $5 million in annual revenue. The acquisition highlights Kona Gold's commitment to expanding its distribution capabilities and footprint in the functional beverage industry.

Positive

• Acquisition of Surge Distribution to bolster distribution capabilities
• Surge Distribution expected to achieve $5 million in annual revenue in 2024
• Strategic move to enhance product reach and distribution services
• Purchase of Surge Distribution for $1.5 million in preferred stock
• Shareholders of Loud Beverage Group to receive 1:1 dividend of Kona Gold Beverage's common stock

Negative

• None.

Kona Gold Beverages, Inc. Acquires Surge Distribution LLC from Loud Beverage Group, Inc. (LBEV)

Surge Distribution Anticipates Achieving $5 Million in Annual Revenue

MELBOURNE, Fla., April 16, 2024 /PRNewswire/ -- Kona Gold Beverages, Inc. (OTCPK: KGKG), a leading holding company specializing in innovative product development within the better-for-you and functional beverage sector, proudly announces its acquisition of Surge Distribution LLC from Loud Beverage Group, Inc. (OTCPK: LBEV) This strategic maneuver underlines Kona Gold's steadfast commitment to bolstering its distribution capabilities and expanding its footprint within the rapidly burgeoning functional beverage industry.

Surge Distribution LLC, renowned for its dynamic presence in the distribution sector, is already on course to achieve an impressive $5 million in annual revenue in 2024. With this landmark acquisition, Surge Distribution seamlessly transitions into the fold of Kona Gold Beverages, Inc., operating as a wholly owned subsidiary. This move exemplifies Kona Gold's unwavering dedication to broadening its product reach and delivering unparalleled distribution services to its discerning clientele.

Under the terms of the agreement, Kona Gold Beverage will purchase Surge Distribution for $1.5 million in preferred stock from Loud Beverage Group. Additionally, shareholders of Loud Beverage Group (Ticker: LBEV) will benefit from a generous 1:1 dividend of Kona Gold Beverage's common stock (Ticker: KGKG). Both companies are excited about the future synergies this partnership will create and the opportunities it will unlock for both companies.

This announcement comes on the heals of the Company's announcement last month regarding the acquisition of Covert, LLC, a pioneering company in the consumer package goods (CPG) market specializing in high-quality, high-potency Delta-8, THCa, THC-P, and Kratom products.  Covert, LLC has projected revenues of $12m+ for 2024.

Setting its sights on lucrative markets, including Charlotte, North Carolina, Central Florida, Tampa, FL, and Jacksonville, Florida, throughout 2024 and 2025, the company anticipates capitalizing on significant growth opportunities in these regions, as underscored by recent industry forecasts.

"We are delighted to herald the acquisition of Surge Distribution LLC," remarked Brandon White, President and Chairman of Kona Gold Beverages, Inc. "This strategic initiative perfectly aligns with our overarching growth objectives and fortifies our market position. Surge Distribution has consistently demonstrated remarkable performance, and we are confident that its integration into our operations will further catalyze our trajectory of growth."

Surge Distribution harbors ambitious plans for expansion, with aspirations to double its revenue projection by 2025. With Kona Gold's extensive resources and unparalleled expertise, Surge Distribution is poised to realize these ambitions and foster even greater success in the ensuing years.

"We recognize the immense potential embedded within Surge Distribution and eagerly anticipate championing its growth endeavors," White added. "In unison, we will harness synergies to optimize operational efficiency and deliver exceptional value to our esteemed clientele and shareholders."

This acquisition serves as a pivotal milestone for Kona Gold Beverages, Inc. as it continues to pioneer innovation and augment its presence within the dynamic functional beverage landscape.

Brandon Spikes, former NFL linebacker and owner of Surge Distribution parent company, Loud Beverage Group, shared his insights on the acquisition, emphasizing his past successful collaborations with Brandon White and their shared vision for Surge Distribution's future.

"I take immense pride in Surge Distribution's growth and trajectory," stated Spikes. "Transitioning to an up-and-coming company with a robust management team aligns with our vision for sustained success. We aim to focus our efforts and resources on areas where we see the greatest potential, diverging from previous differences in management approaches. This acquisition marks a new chapter of growth and prosperity for Surge Distribution, and I am thrilled to lead the company into this exciting phase and sit on Kona Gold Beverage's board as a director."

For more information regarding Surge Distribution Company, please visit: https://surgedist.com/

About Kona Gold Beverage, Inc.
Kona Gold Beverage, Inc., operates as a holding company in the beverage industry. Through its subsidiaries, Kona Gold LLC and Covert LLC, it offers a diverse range of healthy energy drinks and products. Kona Gold's premium line of energy drinks caters to health-conscious consumers, alongside its innovative HighDrate D9 Drinks. Covert LLC specializes in high-quality products, including Delta-8, THCa, THC-P, and Kratom. Headquartered in Melbourne, Florida, Kona Gold Beverage, Inc. is actively engaged in expanding its market presence through strategic acquisitions.

For more information regarding Kona Gold Beverage, please visit: https://konagoldbeverage.com/

Investor Relations Contact:

Phone: 844-714-2224
Email: investorrelations@konagoldbeverage.com

Safe Harbor Statement: 

The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. The Company may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. There can be no assurance that such statements will prove to be accurate. The Company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the Company's Annual Reports on Form 10-K and its other filings with the Securities and Exchange Commission. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control. The Company does not undertake any obligation to update publicly or to revise any statements in this release, whether as a result of new information, future events, or otherwise.

View original content:https://www.prnewswire.com/news-releases/kona-gold-beverages-inc-acquires-surge-distribution-llc-from-loud-beverage-group-inc-lbev-302118099.html

SOURCE Kona Gold Beverage, Inc.

FAQ

What company did Kona Gold Beverages, Inc. acquire Surge Distribution from?

Kona Gold Beverages, Inc. acquired Surge Distribution from Loud Beverage Group, Inc.

What is the anticipated annual revenue for Surge Distribution in 2024?

Surge Distribution is expected to achieve $5 million in annual revenue in 2024.

How much will Kona Gold Beverage pay for the acquisition of Surge Distribution?

Kona Gold Beverage will purchase Surge Distribution for $1.5 million in preferred stock from Loud Beverage Group.

What benefit will shareholders of Loud Beverage Group receive from the acquisition?

Shareholders of Loud Beverage Group will benefit from a 1:1 dividend of Kona Gold Beverage's common stock.