GRANT, Fla., July 23, 2021 /PRNewswire/ --Kaival Brands Innovations Group, Inc. (OTCQB: KAVLD) ("Kaival Brands," the "Company," or "we"), the exclusive global distributor of products manufactured by Bidi Vapor, LLC ("Bidi Vapor"), today announced the re-start of Bidi™ Pouch production ahead of an anticipated September launch. Additionally, the Company recently completed a reverse split on July 20, 2021, and is temporarily trading under the symbol "KAVLD" until its anticipated near-term Nasdaq listing.
As previously disclosed by the Company, the Bidi™ Pouch roll out had been delayed due to COVID-based manufacturing and supply chain constraints. Due to these complications and in effort to prevent future bottlenecks, the Company decided to move manufacturing in-house. The Bidi™ Pouch provides a proprietary tobacco-free nicotine formulation packed in an easy-to-go plastic can. The Bidi™ Pouch is one of few pouch products in the market formulated without utilizing the Swedish Match formula.
"I am pleased to confirm that we expect to take delivery of the pouch-manufacturing machines to our warehouse the end of August and anticipate beginning production in September with our first run expected to yield up to 500,000 cans," noted Niraj Patel, Founder and Chief Executive Officer of Kaival Brands and Bidi®Vapor. "We are excited to launch distribution of The Bidi™ Pouch and have been working behind the scenes during COVID-based delays to secure initial distribution. To that extent, we are proud to announce that 8,000 points of distribution have been secured and are ready to receive our product" adds Eric Mosser, Chief Operating Officer of Kaival Brands.
The Company believes that the nicotine pouch category represents a significant market opportunity. The category has witnessed significant growth recently, with New York-based Nielsen reporting an increase in unit sales of 59.9% in U.S. convenience stores over the 52-week period ended June 19, 2021. This growth is expected to continue, as evidenced by publicly available material from MarketResearch.com in which it indicated that the global Nicotine Pouches market is expected to reach US $32.8 billion by the end of 2026, with an expected CAGR of 54.9% through 2026.
Bidi® Vapor's founding mission is to provide recreational, non-combusted alternatives to adult cigarette smokers. Both Kaival Brands and Bidi® Vapor are vehemently opposed to all illegal underage tobacco use, including ENDS use, by minors. We are committed to preventing youth use of ENDS, responsibly marketing to adult tobacco users 21 and over, working with law abiding retailers and distributors, and complying with all federal and state laws and taxes applicable to the distribution of the Bidi® Stick and the BIDI® Pouch including, but not limited to, the Family Smoking Prevention and Tobacco Control Act ("TCA"), the Food, Drug and Cosmetic Act ("FDCA"), and the Prevent All Cigarette Trafficking ("PACT") Act. We are further committed to developing science to support the continued marketing of our products as appropriate for the protection of the public health and engaging with state and federal authorities to promote enforcement and the removal of counterfeit, non-compliant and youth-targeting ENDS products from the market.
Mr. Patel, the Company's President and Chief Executive Officer, owns and controls Bidi® Vapor. As a result, Bidi® Vapor and the Company are considered under common control and Bidi® Vapor is considered a related party.
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. The Company's premiere 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 adults 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 our mission, with the bidi® Stick promoting environmental sustainability, while providing a unique vaping experience to adult smokers.
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.
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 approval of our application for listing on the Nasdaq Capital Market; 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 distributor 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.