Kona Gold CEO Letter to Shareholders

To Our Shareholders:
I am very pleased to be able to communicate with our loyal shareholders directly and to give you an update on the exciting progress and growth in 2018 and what the Company has in store for 2019.

Kona Gold Solutions, Inc., a holding company, has positioned itself as a leader in the functional beverage sector with the development and marketing of products such as its popular hemp infused energy drinks and the markets first CBD energy waters. We continue our efforts in growing the company through our distribution partners, creating market awareness, and by developing award winning products that resonate with the health, wellness, and fitness markets.

2019
Kona Gold will continue to see unprecedented growth in the 2019. Our current projections, conservatively have the Company’s revenue at $1.5 - $2 million for 2019. These projections are based off of the Company’s current distribution channels and new distribution partners, c-store chains deals, and grocery chains deals, along with new products and product line extensions.

The Company will be announcing several large distribution partners, in various states, along with a c-store chain deal in the coming weeks. Focusing on brand awareness, Kona Gold will also be announcing a very exciting sponsorship that we have been working on for 2019.

In 2019, the Company will we launching several new products and line extensions. Those new products will include the already announced HighDrate Storm CBD Water, in various sizes, and Hemp Energy Shots in Kona Gold’s most popular flavors. Product line extensions will include both Kona Gold, with two new flavors, and HighDrate, with four new flavors. Once all new products are developed and launched, the Company will have 18 exciting products.

With the growth the Company is experiencing, we’ve hired a couple great new members to our team. Jazmin Gonzalez, our new Office Manager and Michelle Motta, our new Accountant Administrator. Mrs. Gonzalez will assist in running day-to-day operations at our Corporate office and Mrs. Motta will be managing the Company’s books and completing our 2017 audit and our future audits as we move to the OTCQB market tier.

2018
Kona Gold had record sales during every quarter in 2018 and finished the year with December sales of over $90,000 with a gross profit over $30,000, making December a profitable month for the company. Strong December sales was a culmination of very strong online sales from Amazon.com, the Company’s own ecommerce stores, and shipping product to current and new distributors. The Company saw over $7,000 in sales from Amazon.com and over $6,000 in sales from its ecommerce stores in December, up over 1,500% for both from the previous year. The Company closed out the year with over $200,000 in revenue, with a large percentage of that revenue coming from Q4.

Kona Gold is experiencing unprecedented growth, which is attributed to its key hires in Christopher Selinger and Chad Webb, two highly experience veterans in the beverage industry. The relationships that Mr. Selinger and Mr. Webb have formed in the beverage industry has opened doors the Company otherwise would not have opened and what has begun and will continue to set Kona Gold apart from other hemp and CBD beverage companies. Kona Gold now has over 10 distribution partners around the country providing customers with our popular Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters.

In 2018, Kona Gold moved from its 8.4 oz offering to its new, 12 oz slim line cans, all without raising product cost and retail price to the consumer. Along with moving to a 12 oz can, Kona Gold also launched three new exciting flavors, Cotton Candy, Cherry Vanilla, and Platinum, all which have been huge hits in the market and have added a substantial increase to revenue. The Kona Gold Hemp Energy Drink product line, now consists of 5 great flavors, and we aren’t finished yet.

In late 2017, the Company launched the industries first CBD Energy Water, HighDrate, available in four delicious flavors, Georgia Peach, Kiwi Strawberry, Tropical Coconut, and Watermelon. 2018 saw great demand for HighDrate, causing it to sell out as we tried to keep up with demand.

In closing, I want to thank each and every one of our shareholders for your interest and continued support of Kona Gold Solution, Inc. I am very excited in the growth and direction of our Company and look forward to a prosperous 2019. I encourage you to contact us at investorrelations@konagoldhemp.com regarding any questions you may have about the Company.

Sincerely Yours,

Robert Clark
Chief Executive Officer