Kaival Brands Innovations Group, Inc. is the exclusive global distributor of products manufactured by Bidi Vapor, LLC, including the BIDI® Stick disposable electronic nicotine delivery system (“ENDS”), which is intended exclusively for adults 21 and over.
“I am excited to announce the upcoming launch of our new, lab-developed, proprietary CBD products,” said Niraj “Raj” Patel, Founder & Chief Executive Officer of Kaival Brands. “Our mission is to set new industry standards by providing the highest quality and most effective products in the hemp CBD marketplace. Our focus is to help people improve their lives by providing a product that maximizes the potential health benefits hemp CBD has to offer.”
Kaival Brands (OTCQB: KAVL) Announces Near-term Plans to Launch Kaival-branded Hemp CBD Product LineTweet this
Mr. Patel continued “We have been searching for a partner with the capabilities to produce our CBD formulation that will provide the same premium experience the BIDI® Stick affords adult consumers – one that provides the right balance of bio-availability and satisfaction. We are excited to announce we have identified a launch partner that we believe meets the standards our customers are accustomed to and that new ones will come to appreciate. We are finalizing discussions with our new partner to not only produce our own internal Kaival Hemp product, but to create white label, wholesale solutions for other product manufacturers. To that end, we have sent our first LOI to provide our first white label solution for a new hemp product company. We are excited for both new and existing adult consumers 21 and older to experience the same class-leading quality that they have become accustomed to with our BIDI® Stick offering, which is the number one ENDS product in the U.S. market. Our agenda has not changed. Our goal is to continue to develop and market alternatives for current adult users of combustible tobacco looking to transition away from legacy tobacco products. Our new Hemp product line represents another avenue in fulfilling our mission.”
All of the contemplated CBD products will be produced and distributed strictly in compliance under the 2018 Farm Bill which defines hemp as the plant Cannabis sativa and any part of the plant with a delta-9 THC concentration of not more than 0.3 percent by dry weight. According to the Farm Bill, hemp-derived products can be offered for retail sale in the many forms: smoke, pouch, tinctures, topicals, capsules, vape oil and gummies/edibles. The Company plans to utilize its best-in-class, patented BIDI® Stick delivery mechanism in order to provide a similar, premium experience in the initial CBD product line. The Company expects its industrial-grade hemp CBD formula to provide greater bio-availability than many market peers, resulting in a better consumer experience in less usage.
A report from “Global Market Insights” indicates the global marketplace for CBD products reached $7B in 2020 and projects the market to grow at a 35.7% CAGR through 2027, expected to reach $108.8B in CBD-related sales. Specifically, the total addressable CBD Vape market is estimated to reach $28B by 2027, as according to “Data Bridge Market Research”. To provide further context, a recent report from “Facts & Figures” anticipates that the global nicotine vape pen market will reach $45B by 2026.
“We believe our product extension into Hemp CBD is a natural step and has the potential to substantially increase our addressable audience while utilizing our existing, premium product infrastructure and superior compliance expertise and methodology. By leveraging our existing distribution network, Kaival Brands plans to ensure our ability to quickly gain market share within this new and dynamic category,” said Mr. Patel.”
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.