Flora Growth to Partner with Avaria to Distribute Award-Winning Pain Cream Brand KaLaya Across LATAM & Produce Its CBD Formulations
July 27 2021 - 7:05AM
Business Wire
- Flora Growth has signed a Letter of Intent with Avaria Inc. to
form a joint venture for the sale of its award-winning KaLaya brand
across LATAM, including Flora Labs’ 2,500+ Colombian distribution
channels.
- KaLaya has sold over a million units and is currently
distributed via major retailers including Loblaws, Walmart, and
London drugs across Canada, holding the number one customer
retention rate in Loblaws’ pain cream categories.
- Flora will support the development and production of CBD pain
cream formulations for the global market, with an immediate focus
on LATAM and import into the United States.
Flora Growth Corp. (NASDAQ: FLGC) (“Flora”, “Flora Growth”, or
the “Company”), an all-outdoor cultivator and manufacturer of
global cannabis products and brands, is pleased to announce it has
signed a non-binding Letter of Intent (“LOI”) to form a joint
venture (“the JV”) with Canadian based Avaria Inc (“Avaria”), the
manufacturer and owner of KaLaya – an award-winning pain cream
distributed nation-wide across Canada.
Through the JV, Flora Growth will manage registration, sales,
and distribution of KaLaya products in Colombia, Mexico, and other
LATAM countries, while Avaria will supply finished product to the
JV. The profits from the sale of KaLaya products under the JV will
be divided equally between Flora Growth and Avaria, increasing the
value of Flora’s existing distribution channels for the
Company.
Further, Flora Lab will work to produce KaLaya’s CBD-infused
products using cannabis from Flora’s cultivation facility. These
products are expected to be distributed across LATAM using Flora
Lab’s established distribution channels, with the aim of exporting
to the U.S. market, where Avaria is currently launching the KaLaya
brand. Avaria does not currently hold a license in Canada to
produce cannabis derived versions of its products at a commercial
scale.
The JV is subject to customary conditions including each of
Flora and Avaria being satisfied with their due diligence reviews
and the parties entering into a definitive agreement.
KaLaya – Award Winning Brand
Avaria’s KaLaya pain cream brand has enjoyed strong success
since inception, where it enjoys three consecutive years of triple
digit growth through their industry leading Canadian e-commerce
channels. Over this period, KaLaya has garnered consumer praise and
industry awards, including:
- Canada’s fastest growing topical decongestants and analgesics
brand (40% YoY Revenue and 34% YoY unit grow) according to Nielsen
Market Track, October 2020
- Awarded TSC’s (The Shopping Channel) #1 2020 Wellness
Brand
- Amazon.ca’s Consumer Choice for topical pain relief (4.5+ Stars
across 1,500+ reviews)
- #1 Ranked Topical Analgesic brand throughout Purity Life
(Canada’s largest distributor of natural wellness products)
“We are very excited to partner with Avaria to bring their
established, award-winning KaLaya brand to our LATAM distribution
network. We believe the product will receive a similarly strong
reception as it has in Canada,” commented Flora Growth President
and CEO, Luis Merchan. “Moving forward, Flora Lab will work with
the Avaria team to produce CBD-infused versions of KaLaya products
for distribution across LATAM as well as export into the United
States. Given CBD’s association with wellness, KaLaya’s established
formulation, and Flora Growth’s low-cost high-quality cannabis,
this is a natural partnership we are excited to bring
globally.”
About Avaria Inc
Privately owned and operated since 1995 by experienced medical
professionals, Avaria Inc, doing business as Avaria Health &
Beauty Corp., has over 20 years of experience in the formulation,
manufacturing and sale of topical creams, oils, emulsions, liquids,
lotions, gels and salves. Proudly Canadian, Avaria Health &
Beauty Corp. is committed to maintaining its status as a 100%
Canadian company. Research, development and manufacturing takes
place in Waterloo and Cambridge, Ontario. Avaria Health &
Beauty Corp. brands enjoy distribution at all levels of retail and
online, domestically, as well as in select international
markets.
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: the parties ability to
enter into the JV; the future business of the JV; the size of
markets for cannabis and cannabis products; 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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Investor Relations Contact: Evan Veryard
evan.veryard@floragrowth.ca Public Relations Contact:
Cassandra Dowell +1 (858) 264-6600 flora@cmwmedia.com
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