- Kaival Brands has recently begun in-house production of the revolutionary Bidi Pouch, with views towards commercializing it from September onwards
- The Bidi Pouch will be targeted at the rapidly growing nicotine pouches market, which is forecast to be worth $32.8bn by the end of 2026
- A recent peer-reviewed article in the American Journal of Public Health promoted vaping and smoke-free nicotine products as a “safer” alternative to combustible tobacco
- Kaival Brands’ product portfolio is set to position the company to benefit from the ongoing shift in consumer demand
Kaival Brands Innovations Group (NASDAQ: KAVL) is a company that has rapidly garnered a reputation for fostering and incubating innovative companies into mature, dominant brands. As such, the success of the Bidi(TM) Stick, an innovative nicotine vaping device designed to provide adult smokers with a premium vaping experience and for which Kaival Brands operates as the sole distributor, comes as no surprise. The company has recently announced plans to broaden its product portfolio through the launch of the Bidi(TM) Pouch, a proprietary tobacco-free nicotine formulation packed in an easy-to-go plastic can, which will begin to go on sale as of September 2021 (https://ibn.fm/jYCUn).
The Bidi(TM) Pouch, which Kaival Brands will be manufacturing entirely in-house, will seek to address a product category that has witnessed an incredible growth spurt over the past few years. A study by MarketResearch.com has forecast the global nicotine pouches market to be worth as much as $32.8 billion by the end of 2026, with an expected CAGR of 54.9% between 2021 – 2026. The segment’s growth has been equally strong within the United States, with Nielsen reporting a 59.9% increase in nicotine pouch unit sales across U.S. convenience stores over the 52-week period ended June 19, 2021.
“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(R) Vapor.
“We are proud to announce that 8,000 points of distribution have been secured and are ready to receive our product,” added Eric Mosser, chief operating officer of Kaival Brands.
Kaival Brands has seen its fortunes rise over the past 24 months, with sales growth for its core Bidi Stick product outpacing the overall electronic smoking devices market. Having launched just over a year ago, the Bidi(TM) Stick is now distributed nationwide across over 850 stores, including the likes of Fast Mart and SprintMart, in addition to over 2,200 Circle K convenience stores. The company has also sought to aggressively market its product portfolio through e-commerce channels, with the Bidi(TM) Stick available for sale for in-person delivery from gopuff.com (https://ibn.fm/itZ5f).
The Bidi(TM) Stick, as well as the soon-to-be released Bidi(TM) Pouch, now stand to gain further adepts after an article by Dr. Kenneth Warner, the Avedis Donabedian Distinguished University Professor Emeritus of Public Health at the University of Michigan, in the peer-reviewed American Journal of Public Health endorsed vaping as a less risky alternative to the consumption of combustible tobacco cigarettes (https://ibn.fm/bwEfZ).
In conjunction with experts from New York University and the University of California San Francisco, among others, Warner has sought to promote the use of vaping and smoke-free nicotine delivery as a potential strategy to eliminate cigarettes (https://ibn.fm/rGhwY).
“Our concern is that much of the public health community—certainly the media, and very much legislators—haven’t really heard the other side of the story,” stated Dr. Warner.
With the electronic smoking and nicotine pouch industries set to concurrently benefit from a double-digit growth rate for the foreseeable future, Kaival Brands with its rapidly expanding product portfolio, stands well-positioned to continue benefitting from the ongoing shift away from combustible tobacco products and towards vaping and smoke-less nicotine alternatives.
For more information, visit the company’s website at www.KaivalBrands.com.
NOTE TO INVESTORS: The latest news and updates relating to KAVL are available in the company’s newsroom at http://ibn.fm/KAVL
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