Distribution expected to reach 28,000 additional
stores
GRANT,
Fla., April 18, 2022 /PRNewswire/ -- Kaival
Brands Innovations Group, Inc. (NASDAQ: KAVL) ("Kaival Brands," the
"Company," or "we"), the exclusive global distributor of all
products manufactured by Bidi Vapor, LLC ("Bidi Vapor"), which are
intended for adults 21 and over, today announced the expansion of
additional wholesaler and retailer accounts, which, together, are
expected to reach approximately 28,000 additional stores.
Kaival distribution of BIDI Stick expected
to reach 28,000 additional stores
Niraj Patel, Chief Executive
Officer of Kaival Brands said, "We are encouraged by growing sales
volumes in our second fiscal quarter generated by both established
wholesalers and retailers selling the BIDI® Stick
in new stores, as well as new wholesale and retail accounts being
added to our distribution network. We anticipate the activation of
approximately 3,900 new store locations over the next 45 days,
including one new major retailer having already placed orders
totaling more than $1.1 million."
This expansion represents a positive development for the Company
since the U.S. Food and Drug Administration ("FDA") issued its
marketing denial order ("MDO") to Bidi Vapor this past September,
as it did for about 96% of all manufacturers of flavored ENDS. In
February 2022, the U.S. Court of
Appeals for the Eleventh Circuit granted Bidi Vapor a judicial stay
of the MDO, pending the resolution of Bidi Vapor's ongoing
merits-based litigation. In effect, the judicial stay means that
the MDO, which covered the non-tobacco flavored
BIDI® Sticks, is not legally in force. Accordingly,
Kaival Brands anticipates marketing and selling all 11 flavored
BIDI® Sticks, subject to the FDA's enforcement
discretion, while Bidi Vapor continues with its merits case
challenging the legality of the MDO. The FDA has indicated that it
is prioritizing enforcement against companies that have either not
submitted Premarket Tobacco Product Applications ("PMTAs"), or
whose PMTAs have been refused acceptance or filing by FDA, or whose
PMTAs remain subject to MDOs.
After the court granted Bidi Vapor the judicial stay of the MDO
in February 2022, the Company is
seeing indications of growing confidence in the vaping industry,
with Bidi Vapor's flavored electronic nicotine delivery systems
(ENDS) now declared legal to sell while pending resolution of the
ongoing litigation.
"This was a significant event not only for Kaival Brands and
Bidi Vapor, but the entire industry," said Patel of the court
decision. "The judicial stay granted in February allowed us to
resume sale of all 11 flavored products in the BIDI®
Stick lineup. We are eager to return our flavored products to the
shelves of retailers that comply with the Prevent All Cigarette
Trafficking Act so adult consumers can enjoy their preferred
flavors once again. As a result of the judicial stay, we expect
revenues to resume an upward trajectory as renewed distribution
ramps up and sales of flavored BIDI® Sticks
increase."
Additionally, we believe that the FDA's new authority over
products using synthetic nicotine will only bolster Kaival Brands'
market position, as more retailers understand the nearly
insurmountable compliance hurdles facing those manufacturers of
non-compliant, synthetic products. The Company applauds the
recent bi-partisan effort by Congress to give the FDA authority
over synthetic nicotine. The Company, along with Bidi Vapor,
prioritizes regulatory compliance to ensure high standards for
product quality.
"Products in the vaping industry should be developed and placed
in the market under a high degree of supervision, such as the FDA's
PMTA process or the FDA's drug-approval process," continued Patel.
"We anticipate that as the FDA begins enforcement against illegally
marketed and synthetic-nicotine vaping products, there may be an
increased demand for compliant and legal vaping products, such as
the BIDI® Stick.
Adult smokers aged 21 and older who are looking for an
alternative to combustible cigarettes have been our priority from
the beginning," Patel said. "It hasn't been an easy road, but we
fight to create a level playing field for our products and pave a
realistic path for adult smokers to change their habits. This is
and always has been our commitment."
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.
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
https://ir.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
timing and results of Bidi Vapor's appeal of the FDA's PMTA
determinations; the scope of future FDA enforcement of regulations
in the ENDS industry; the FDA's approach to the regulation of
synthetic nicotine and its impact on our business; 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.
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SOURCE Kaival Brands