Kona Gold stock surged 17 percent higher on August 23, 2019, after the company announced a major new distribution agreement with Imperial Beverage.
Kona Gold stock (OTCPINK: KGKG), a hemp and CBD lifestyle brand focused on product development in the functional beverage sector, has signed a major distribution agreement with Michigan based Imperial Beverage. Imperial Beverage brings Kona Gold Hemp Energy Drinks into the state of Michigan, where Kona Gold previously did not have distribution. Imperial will distribute the Company’s popular products across the entire state of Michigan.
Established in 1933 after the repeal of prohibition and purchased by Kalamazoo’s Cekola family in 1984, Imperial Beverage has grown from a one county beer distributor to a top 10 statewide beer, wine & spirits wholesaler. With 350 employees and 4 locations in Kalamazoo, Livonia, Traverse City and Ishpeming, Imperial provides statewide coverage that serves every Michigan County, every week, all year long.
Here is a map of state’s that Kona Gold has distribution agreements in:
On August 19, 2019, Kona Gold announced that it beat Second Quarter projected revenue of $400,000 by $329,000 on revenue of $729,000. Sales from the Company’s Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters beat Company estimates by a huge margin. The signing of 16 new distribution partners, the launch of two new Kona Gold Hemp Energy Drink flavors, and the strong demand for the Company’s products during the second quarter of 2019 pushed revenue to new heights.
Kona Gold continues to have impressive growth in the third quarter of 2019. During the current quarter, the Company has added 14 new distribution partners, with several more in negotiation, continues to expand market presence in new states, and announced the recent partnership with the American Breast Cancer Foundation, in which the Company will launch its all new Kona Pink beverage, a Pink Grapefruit Flavored Hemp Energy Drink, at the end of September. Kona Gold has set projected revenue of $800,000 for the third quarter.
“We had an unbelievable second quarter signing, on average, a new distributor every week and almost moving double the amount of product as we projected,” stated Robert Clark, CEO of Kona Gold Solutions, Inc. “Our team continues to fire on all cylinders and our products are making a huge impact in the market place. Our premium beverage products are now available in 35 states in convenient stores, restaurants, grocery chains, specialty stores, bowling alleys, smoke shops, and more.”
Clark continued, “Early in the year the Company projected $1.5 – $2 million in revenue for 2019, which it will hit by the end of Q3. This is a huge accomplishment for the Company as it pushes to have its first profitable year in 2019.”
The Kona Gold stock chart looks bullish and a retest of the $0.15 price level is likely coming.
Kona Gold is a pinksheet listed stock and so it does not meet the minimum requirements for inclusion in the long-term buy and hold GST portfolio. However, with the explosive revenue growth the company is experiencing, KGKG stock may eventually up-list to a more reputable OTCBB exchange.
Disclosure: We do not hold any position in KGKG stock.