Flora Growth Expands its Food & Beverage Division, Signs Sales Agreement with Largest Colombian Distributor Representing Up...
July 12 2021 - 07:30AM
Business Wire
- Flora’s Food and Beverage division, Kasa Wholefoods has
signed an initial 1-year distribution agreement to supply food
products to Colombia’s largest food distributor, Tropi.
- Tropi reaches over 130,000 distribution points across 38 cities
in Colombia.
- Kasa Wholefoods anticipates this initial agreement to generate
additional sales of its CBD and hemp portfolio, expects sales to
reach approximately US$2M per month.
Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), a
leading all-outdoor cultivator and manufacturer of global cannabis
products and brands, is pleased to announce that its food and
beverage division, Kasa Wholefoods Company S.A.S. (“Kasa”) has
signed an initial one-year sales agreement with Importaciones y
Asesorias Tropi S.A.S. (“Tropi”). Flora expects this agreement to
generate up to US$10 million based on today’s exchange and market
rates to deliver premium and sustainable canned products, including
products that target the health benefits of hemp seed oil.
Kasa intends on leveraging this initial sales agreement with
Colombia’s largest CPG distributor to generate additional sales of
its entire product portfolio. This agreement exemplifies Flora
Growth’s strategy of building out its distribution channels and
sales relationships utilizing high-quality traditional CPG
products, with the near-term opportunity to incorporate
cannabinoid-containing products to maximize the value of the
relationship and amplify revenue growth.
“We believe that this sales agreement is a significant milestone
for Kasa. We expect it to generate significant revenue, while
allowing our brands to build upon a relationship with one of the
leading food and beverage distributors in Colombia,” said Jason
Warnock, Chief Revenue Officer of Flora. “This agreement connects
our established premium and sustainable supply chain to
significantly more customers and points of consumer distribution,
all the while providing dependable, contracted revenue.”
“We’re thrilled about this distribution agreement with Tropi.
The breadth of their network and experience in working with health
and wellness-focused brands will prove invaluable to our expansion
strategy,” said Luis Merchan, President and CEO of Flora. “We’re
proud to partner with another company that shares a legacy of
quality products and serving its communities. Their extensive
distribution and logistics models, strong selling capabilities, and
complementary brand portfolio will undoubtedly increase our ability
to reach consumers.”
Flora Announces CEO Fireside Highlighting Recent
Developments
Further, Flora Growth will be hosting another live fireside
discussion between President & CEO, Luis Merchan, Chief Revenue
Officer, Jason Warnock, and Lead Scientific Advisor, Dr. Annabelle
Manalo-Morgan. The virtual fireside conversation will take place
Thursday, July 15th at 1:00 pm ET, and all those interested in
attending are encouraged to register using the following link.
Registration Link:
https://us02web.zoom.us/webinar/register/WN_aiAl21vLQcearsfY2NFNUQ
Specifically, Luis and Jason will provide an update on
Cosechemos and Flora Lab, and discuss their strategic importance to
our international expansion and contributions to revenue growth.
This segment will also include a discussion around our holistic CPG
strategy, the opportunity with Tropi, and a brief update on the
progression of the Hoshi and Heimat transactions (please see the
Company’s press releases dated June 7th and June 14th
respectively).
Dr. Annabelle will discuss Flora Growth’s science strategy,
including her thoughts on cannabinoid research, how cannabis will
support medical patients over the long-term, and legislative
developments related to cannabis within the United States.
About Tropi
Tropi is a company dedicated to the development of commercial
and logistical strategies that allow for the positioning of CPG
products across varying categories, through different distribution
models, across Colombia. The company was founded in 1996 and is
known for providing healthy and quality products through its
exceptional customer support team dedicated to satisfying its
clients and consumers. Tropi has a presence in more than 900 of the
1,122 municipalities across the nation, with more than 40,000
clients and retail distribution points.
About Flora Growth Corp.
Flora is a cannabis company that leverages natural,
cost-effective cultivation practices to supply cannabis derivatives
to its diverse business divisions of cosmetics, hemp textiles, and
food and beverage. As the operator of one of the largest outdoor
cultivation facilities, Flora strives to market a higher-quality
premium product at below market prices. By prioritizing natural
ingredients and value-chain sustainability across its portfolio,
Flora creates premium products that help consumers restore and
thrive. Visit www.floragrowth.ca or follow @floragrowthcorp on
social for more information.
Cautionary Statement Concerning Forward-Looking
Statements
This document contains forward-looking statements. In addition,
from time to time, we or our representatives may make
forward-looking statements orally or in writing. We base these
forward-looking statements on our expectations and projections
about future events, which we derive from the information currently
available to us. Such forward-looking statements relate to future
events or our future performance, including: expected future
revenue, the ability to execute on the distribution agreement with
Tropi; our financial performance and projections; our growth in
revenue and earnings; and our business prospects and opportunities.
You can identify forward-looking statements by those that are not
historical in nature, particularly those that use terminology such
as “may,” “should,” “expects,” “anticipates,” “contemplates,”
“estimates,” “believes,” “plans,” “projected,” “predicts,”
“potential,” or “hopes” or the negative of these or similar terms.
In evaluating these forward-looking statements, you should consider
various factors, including: our ability to change the direction of
the Company; our ability to keep pace with new technology and
changing market needs; and the competitive environment of our
business. These and other factors may cause our actual results to
differ materially from any forward-looking statement.
Forward-looking statements are only predictions. The
forward-looking events discussed in this document and other
statements made from time to time by us or our representatives may
not occur, and actual events and results may differ materially and
are subject to risks, uncertainties and assumptions about us. We
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of uncertainties and
assumptions, or the forward-looking events discussed in this
document and other statements made from time to time by us or our
representatives not occurring, except as may be required by
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210712005262/en/
Investor Relations: Evan Veryard
evan.veryard@floragrowth.ca Public Relations: Cassandra
Dowell +1 (858) 264-6600 flora@cmwmedia.com
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