Kaival Brands (OTCQB: KAVL) Announces Total Purchase Orders of $22.4 Million From Grocery Supply Warehouse
Partnership with GSW targets dozens of wholesalers representing a potential regional distribution network totaling more than 26,000 stores.
GRANT, Fla., May 20, 2021 /PRNewswire/ -- Kaival Brands Innovations Group, Inc. (OTCQB: KAVL) ("Kaival Brands," the "Company," or "we"), today announced the entry into a Customer Agreement (the "Customer Agreement") with Grocery Supply Warehouse ("GSW"), a master distributor representing dozens of wholesalers with a combined network of over 26,000 grocery and convenience stores. Kaival Brands is the exclusive global distributor of products manufactured by Bidi Vapor, LLC ("Bidi Vapor"), including the BIDI® Stick, which is intended exclusively for adults 21 and over.
Pursuant to the Customer Agreement, GSW has placed purchased orders in an aggregate amount of $22.4 million with Kaival Brands to distribute Bidi Vapor products throughout its network to certain wholesale and retail store customers. "We believe our relationship with Kaival Brands will be a beneficial partnership for us," said Carl Wells, president of GSW. "It is important for us to represent a top-quality product—one you can trust—in this category."
The partnership with GSW represents a renewed focus on the distributor class of trade, allowing more store-level operators easier access to Bidi Vapor's products, said Niraj Patel, president and CEO of Kaival Brands. "In order to give more adult smokers 21 and older an option to combustible cigarettes, we have to provide c-store operators with more ways to bring our products to their shelves," Patel said. "An important step is to renew our focus on the wholesale or distributor leg of the supply chain."
Bidi Vapor's primary offering, the BIDI® Stick, is the fastest-growing closed-end disposable electronic nicotine delivery system ("ENDS") in the U.S. according to a recent Nielsen market share data report for the 52-week period ending March 27, 2021. The tamper-resistant BIDI® Stick is also the only ENDS on the market with an ecologically friendly, mass-recycling program called Bidi® Cares, and is the subject of a comprehensive Premarket Tobacco Product Application (PMTA) now under review with the U.S. Food and Drug Administration.
GSW is a 15-year-old company based in Missoula, Montana that started out distributing coffee and other beverage products to the c-store channel. Today, its representation of many of the nation's largest convenience distributors has given Kaival Brands potential access to more than 26,000 convenience stores through almost 30 regional distributors.
Mr. Patel, the Company's President, Chief Executive Officer, and Chief Financial Officer, owns and controls Bidi Vapor. As a result, Bidi Vapor and the Company are considered under common control and Bidi Vapor is considered a related party.
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. The company's premiere 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. Bidi Vapor is also adamant about strict compliance with all federal, state, and local guidelines and regulations. At Bidi Vapor, innovation is key to our mission, with the BIDI® Stick promoting environmental sustainability, while providing a unique vaping experience to adult smokers.
For more information, visit www.bidivapor.com.
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 global distributor of all products manufactured by Bidi Vapor.
Learn more about Kaival Brands Innovations Group, Inc., at www.kaivalbrands.com
Forward-Looking Statements
This press release includes statements that constitute "forward-looking statements" within the meaning of federal securities laws, which are statements other than historical facts that frequently use 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 could materially 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, the approval of our application for listing on the Nasdaq Capital Market; the duration and scope of the COVID-19 pandemic and impact on the demand for the products we distribute; the actions governments, businesses, and individuals take in response to the pandemic, including mandatory business closures and restrictions on onsite commercial interactions; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps that we could take to reduce operating costs; our inability to generate and sustain profitable sales growth; 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; changes in government regulation or laws that affect our business; significant changes in our relationships with our distributors or sub-distributors; and those factors detailed by us in our public filings with the Securities and Exchange Commission. 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.
SOURCE Kaival Brands
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