- Kaival Brands reported $32mn in revenues for the quarter ending July 2020, up 44% QoQ
- The growth has been driven by the mounting popularity of KAVL’s flagship product, the Bidi(TM) Stick vaping device
- Product’s recent growth has far outpaced the growth rate of the e-cigarette sector, which has seen overall sales rise by 15.6% YoY as of August 2020
- Kaival taking next steps to broaden distribution footprint, seeks to gain share in global e-cigarette market, which is set to grow to $53.9 billion by 2027
Kaival Brands Innovations Group (OTCQB: KAVL) is a company which has rapidly garnered a reputation for fostering and incubating innovative companies into mature, dominant brands. As such, the recent success of the Bidi (TM) Stick—an innovative nicotine vaping device designed to provide adult smokers with a premium vaping experience and for which Kaival Brands operates as the sole distributor—comes as no surprise.
Kaival Brands reported sales of $32 million for the quarter ending July 31, 2020, with revenues increasing approximately 44% relative to the previous quarter. The company’ s financial performance is even more remarkable given the degree to which sales growth for the Bidi(TM) Stick has outpaced the overall electronic smoking devices market, with the latter category reporting growth of 15.6% YoY for the 52 weeks ending August 9, 2020 (https://nnw.fm/q3oXb).
“We had an extremely busy and fruitful third fiscal quarter. We experienced a rising demand for our exclusively distributed premium product, the Bidi(TM) Stick. Our sales growth is occurring mostly organically through smaller distribution channels and wholesalers,” said Kaival Brands CEO Niraj Patel. “Now in the fourth fiscal quarter, we are more closely focused on expanding our distribution into large national retailers and convenience chains.”
Having launched less than twelve months ago, Kaival Brands has worked to form an impressive distribution network with the Bidi (TM) Stick now distributed nationwide across over 850 stores, including the likes of Fas Mart and Sprint Mart, in addition to over 2,200 Circle K convenience stores. The company has also sought to aggressively market its product portfolio through e-commerce channels, with the Bidi (TM) Stick now available for sale for in-person delivery from gopuff.com (https://nnw.fm/vNkJv).
The company has also sought to take its initial steps towards international expansion in recent months, through the initial shipment of an order valued at approximately $166 thousand to Ambros Inc., a Guam-domiciled company which is the exclusive distributor of SC Johnson and Budweiser products to all retailers located in Guam.
Despite the Bidi (TM) Stick’s impressive growth trajectory to date, Kaival Brands has yet to fully take advantage of the growth opportunities available within the global addressable e-cigarette market. A recent study carried out by Global Industry Analysts Inc. found that the global market for e-cigarettes, estimated at $16.9 billion in 2020, was projected to rise to an annual value of $59.3 billion by 2027, growing at a CAGR of 19.6% over the seven-year period (https://nnw.fm/cfiQk).
Kaival Brands is a fast-growing company focused on generating wealth by seeking to incubate innovative products into mature and dominant brands in their respective markets. Its vision is to develop internally, acquire or own, and exclusively distribute these profitable brands with recognizable innovation and superior quality.
For more information on Kaival Brands, visit the company’s website at www.KaivalBrands.com.
NOTE TO INVESTORS: The latest news and updates relating to KAVL are available in the company’s newsroom at http://nnw.fm/KAVL
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