NetworkNewsWire
Editorial Coverage: With the global e-cigarette and vape market expected to exceed $59
billion by 2027, the vaping industry appears to have weathered a
cloud of scrutiny and is emerging better regulated and even
stronger. Much of that growth stems from an increasing awareness of
the advantages of consuming smokeless and ashless nicotine, backed
up with growing studies. Although larger tobacco companies control
a large share of the global e-cigarette and vape market, smaller
elite players such as Kaival Brands Innovations Group Inc.
(OTCQB: KAVL) (KAVL
Profile) are making their presence felt in a space
where innovation and compliance are essential factors for success.
Kaival Brands is the sole distributor of Bidi(TM) Stick, an
innovative nicotine vaping device designed to provide adult smokers
with a premium vaping experience. Philip
Morris International Inc. (NYSE: PM) has launched a
next-generation, e-vapor product platform called IQOS
MESH. Imperial
Brands (OTCQX: IMBBY) is focusing on providing a
portfolio of high-quality, next-generation products that are
potentially less harmful than combustible cigarettes, including its
pioneering vapor brand, blu. British
American Tobacco Industries (NYSE: BTI) has welcomed
the FDA guidance as a further step toward a sustainable regulatory
environment for the U.S. vapor market. And Turning
Point Brands (NYSE: TPB) has focused on operating its
vaping business at smaller but still profitable levels.
- Global market projected to more than triple in size, reaching
$59.3 billion by 2027.
- The exclusive distributor of the Bidi Stick, Kaival Brands has
developed national distribution channels with future growth in
mind.
- Kaival’s impressive financial performance appears to solidly
position the elite newcomer as a dominant player offering premium
products.
Click here to view
the custom infographic of the Kaival Brands Innovations Group Inc.
(OTCQB: KAVL) editorial.
Marketing Gaining Traction
A recent report noted that the global market
for e-cigarettes, estimated to reach $16.9 billion in 2020, is
projected to more than triple in size, reaching $59.3 billion by
2027. Those numbers, indicating a CAGR of 19.6% during the next
seven years, include double-digit growth in all the main
e-cigarette markets, including the United States, China, Japan,
Canada, and Germany.
A Grandview Research report overview also anticipated
substantial growth in the market, actually forecasting CAGR growth of 23.8% over the same period.
“The market is expected to gain traction over the forecast period,
owing to increasing product demand from millennials,” the report
notes. “The availability of a variety of e-cigarette options is
anticipated to further fuel product adoption.”
The report goes on to note that “large tobacco companies have
flourished by introducing these devices through various brands that
cater to different requirements, thereby enhancing the product
quality and level of customization. Moreover, emerging e-cigarette
technologies, such as pod systems and squonk mods have increased
its popularity in recent years.”
Companies, both large and small, offering innovation in this
expanding market could make huge strides in distinguishing
themselves from the competition.
Future Growth in Mind
Kaival Brands
Innovations Group Inc. (OTCQB: KAVL) is focused on growing and
incubating innovative and profitable products into mature, dominant
brands — exactly what’s needed to capture significant market share
in the burgeoning vaping sector. The exclusive distributor of the
Bidi Stick, Kaival Brands has developed solid national distribution
channels with future growth in mind. Consequently, the company’s
products are currently available in thousands of retail and
convenience store locations nationwide.
“We are proud to announce that Bidi Sticks can now be found
nationally in over 850 retail stores, like Fas Mart and SprintMart,
owned by GPM Investments LLC in addition to over 2,200 current
Circle K convenience stores, and we expect in the coming months for
our distribution to expand potentially into thousands more
retailers and convenience chains,” said
Kaival president and CEO Niraj Patel. “Bidi Sticks can
also be purchased online for in-person delivery from
any goPuff.com facility that has the ability to sell Bidi
Sticks legally with proper age-verification gates within that state
or municipality.”
The company isn’t letting international borders stop them
either. “Internationally, we also recently shipped an initial order
valued at approximately $166,000 to Ambros Inc., a company located
in Guam that is the exclusive distributor of Johnson & Johnson
and Budweiser products to all retailers located in Guam,” Patel
continued. “The Bidi Stick will be the only vaping device offered
by Ambros Inc. to their customers and retailers.”
Dominant Player, Premium Product
In addition to reporting notable distribution reach, Kaival’s
impressive financial performance appears to solidly position the
elite newcomer as a dominant player offering premium products in
the vaping sector. The company just released its financial results Q3 2020. Reported highlights include
the following eye-popping numbers:
- Revenues for quarter ending July 31, 2020, totaled
approximately $32.4 million, compared to $0 in the same period of
the prior fiscal year.
- Gross profit for the third quarter of fiscal 2020 was
approximately $4.4 million, compared to $0 for Q3 2019..
- Total operating expenses were approximately $1.5 million in the
third quarter of fiscal 2020, compared to approximately $27,000 in
the same period of the prior fiscal year.
- Net income reached an estimated $2.6 million, compared to net
loss of approximately $27,000 for the prior year period.
- Cash balance at July 31, 2020, was approximately $2.7 million,
compared to $0 at Oct. 31, 2019.
The company credits much of its financial growth to the popular
Bidi Stick. “We had an extremely busy and fruitful third fiscal
quarter,” said Patel. “We experienced a rising demand for our
exclusively distributed premium product, the Bidi Stick. We have
seen an increase in sales of almost 44% from the previous quarter,
with our sales growth occurring mostly organically through smaller
distribution channels and wholesalers. Now in the fourth fiscal
quarter, we are focused on expanding our distribution into large
national retailers and convenience chains.”
A Nicotine Experience for Today
Explosive sales of the Bidi Stick are a testament to the ideal
system designed for vaping in today’s world. The high-quality
product is a one-time use, closed-system, disposable vaping device
that is tamper proof and recyclable. Available in 11 flavors, the
innovative product is made from high-quality components, including
a long-lasting battery and class A nicotine. Product engineering
also includes a sensitivity control system, along with a proven
mechanism designed to help identify and eliminate counterfeit
products.
At a time when vaping is under close scrutiny, the Bidi Stick is
only marketed to adult smokers and is intended as an alternative to
cigarette smoking. Specifically, the product is designed to provide
adult smokers an option that offers nicotine satisfaction while
reducing daily urges for nicotine.
From packaging design to marketing strategies to distribution
policies, Bidi Vapor(TM), the manufacturer of the Bidi Stick, is
committed to strict compliance to government regulations. As part
of that compliance process, Bidi Vapor products are sold primarily
through national convenience stores as well as online exclusively
on Bidi Vapor’s website and the digital convenience store,
GoPuff.
Bidi Vapor requires its retail partners to sign a retailer
pledge that confirms their commitment in making sure that their
customers provide a valid government-issued identification to prove
age eligibility. For online customers, Bidi Vapor follows a strict
age-verification process to ensure that only customers 21
years of age and older can purchase the product. The customers’ age
and identity is verified by a third-party AgeChecker.om, which uses
multiple databases to confirm people’s IDs. As another layer of
confirmation, Bidi Vapor calls customers within 24 hours upon the
purchase transaction to verify their age and the eligibility of the
transaction. And finally, upon delivery of product, Bidi Vapor
requires a valid identification with the customers’ signature.
The vaping industry has undergone much needed reform. New
regulations have limited access to minors, pushed out bad actors,
and returned focus to delivering vaping products as an alternative
to smoking tobacco. The industry has not only stabilized, it is
growing. Investors can now look to rapidly growing companies in the
sector for potential outsized market returns.
Industry Heating Up
With an industry set to heat up significantly, Kaival Brands
isn’t the only company leveraging for position in the promising
space.
Philip
Morris International Inc. (NYSE: PM) is working
to replace cigarettes with smoke-free products
designed to create a nicotine-containing tobacco vapor, without
burning and smoke. The company is focusing its efforts on its
next-generation, e-vapor product platform — IQOS MESH — which
features a heating technology that is completely new to e-vapor
generation. The IQOS MESH uses a metallic mesh punctured with tiny
holes to heat a prefilled, presealed e-liquid cap
(called VEEV) that contains nicotine and flavors.
Each VEEV cap contains a new MESH heater, which
eliminates the need to manually replace it. The consumer activates
the heating process by pressing on a button, heating up the
e-liquid to generate a nicotine-containing vapor.
Imperial
Brands (OTCQX: IMBBY) subsidiary Fontem US LLC (Fontem
US) announced that it has submitted Premarket
Tobacco Product Applications (PMTAs) to the U.S. Food and Drug
Administration (FDA) seeking authorization for the continued
marketing of a wide range of its myblu electronic
vaping products. Fontem US’s blu products play a fundamental role
in the company’s goal of providing adult smokers with options that
are potentially less harmful than combustible tobacco products.
British
American Tobacco Industries (NYSE: BTI) publicly welcomed FDA regulation and guidance in the
vaping industry as a further step toward building a sustainable
regulatory environment, noting the company stands ready to comply
with new guidelines. “Yesterday’s announcement takes us a step
closer to a predictable regulatory environment in a key
marketplace, but focus must now shift to enforcement to ensure
vapour market regulations are effective,” stated British American
Tobacco CEO Jack Bowles. “We have long said it is not the marketing
of these products per se that is the concern, it is the
irresponsible marketing of them that should be robustly addressed.
For us, smart regulatory frameworks partnered with responsible
marketing and appropriate enforcement will ensure the
sustainability of adult consumer choice across all categories.”
Turning Point
Brands (NYSE: TPB) reacted quickly to concerns about the vaping industry,
consolidating its vaping business and cutting companywide headcount
by more than 10%. “Fourth quarter 2019 was a solid quarter for our
core tobacco segment and an important transition period for our
NewGen segment,” said Turning Point Brands president and CEO Larry
Wexler. “Our ambition continues to focus on creating value
for our shareholders by delivering quality products to satisfy the
evolving preferences of consumers in the actives market.”
As innovative companies look to bring new nicotine options to
adult smokers, those consumers appear ready to reward efforts made
to offer safer, smokeless products. With predicted double-digit
growth on the horizon, investors may also benefit from innovation
in the e-cigarette and vaping space.
For more information about Kaival Brands, please visit Kaival Brands
Innovations Group Inc. (OTCQB: KAVL).
About NetworkNewsWire
NetworkNewsWire
(“NNW”) is a financial news and content distribution company, one
of 40+ brands within the InvestorBrandNetwork (“IBN”), that
provides: (1) access to a network of wire
solutions via NetworkWire to
reach all target markets, industries and demographics in the most
effective manner possible; (2) article and
editorial syndication to 5,000+ news outlets; (3)
enhanced press release solutions to ensure maximum
impact; (4) social media distribution via IBN
millions of social media followers; and (5) a full
array of corporate communications solutions. As a multifaceted
organization with an extensive team of contributing journalists and
writers, NNW is uniquely positioned to best serve private and
public companies that desire to reach a wide audience comprising
investors, consumers, journalists and the general public. By
cutting through the overload of information in today’s market, NNW
brings its clients unparalleled visibility, recognition and brand
awareness. NNW is where news, content and information converge.
To receive SMS text alerts from NetworkNewsWire, text
“STOCKS” to 77948 (U.S. Mobile Phones Only)
For more information, please visit https://www.NetworkNewsWire.com
Please see full terms of use and disclaimers on the
NetworkNewsWire website applicable to all content provided by NNW,
wherever published or re-published: http://NNW.fm/Disclaimer
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
NetworkNewsWire is part of the InvestorBrandNetwork
DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article
and content set forth above. References to any issuer other than
the profiled issuer are intended solely to identify industry
participants and do not constitute an endorsement of any issuer and
do not constitute a comparison to the profiled issuer. The
commentary, views and opinions expressed in this release by NNW are
solely those of NNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable NNW for any investment
decisions by their readers or subscribers. NNW is a news
dissemination and financial marketing solutions provider and are
NOT registered broker-dealers/analysts/investment advisers, hold no
investment licenses and may NOT sell, offer to sell or offer to buy
any security.
The Article and content related to the profiled company
represent the personal and subjective views of the Author, and are
subject to change at any time without notice. The information
provided in the Article and the content has been obtained from
sources which the Author believes to be reliable. However, the
Author has not independently verified or otherwise investigated all
such information. None of the Author, NNW, or any of their
respective affiliates, guarantee the accuracy or completeness of
any such information. This Article and content are not, and should
not be regarded as investment advice or as a recommendation
regarding any particular security or course of action; readers are
strongly urged to speak with their own investment advisor and
review all of the profiled issuer’s filings made with the
Securities and Exchange Commission before making any investment
decisions and should understand the risks associated with an
investment in the profiled issuer’s securities, including, but not
limited to, the complete loss of your investment.
NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. “Forward-looking statements” describe future expectations,
plans, results, or strategies and are generally preceded by words
such as “may”, “future”, “plan” or “planned”, “will” or “should”,
“expected,” “anticipates”, “draft”, “eventually” or “projected”.
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company’s annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and NNW undertakes no
obligation to update such statements.
Source:
NetworkNewsWire
Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Imperial Brands (QX) (USOTC:IMBBY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Imperial Brands (QX) (USOTC:IMBBY)
Historical Stock Chart
From Apr 2023 to Apr 2024