Kona Gold Beverage Inc (OTCMKTS:KGKG) stock continues to move lower Wednesday after the company announced distribution expansion.
Market Reaction:
In Wednesday’s trading session, KGKG stock fell 2.86% to $0.0170 with more than 2.85 million shares, compared to its average volume of 3.03 million shares. Over the past 52-week, the stock has moved within a range of $0.0148 – 0.0560.
Major Trigger:
Kona Gold Beverage, Inc. Announces Gold Leaf Distribution Expansion
Key Highlights:
Kona Gold Beverage announced its wholly owned subsidiary, Gold Leaf Distribution, and is expanding its distribution operations to Myrtle Beach, SC. Gold Leaf Distribution currently has distribution warehouses in Greer, SC and Melbourne, FL and services over 900 accounts.
Gold Leaf Distribution recently signed a warehouse lease in Conway, SC which will begin on October 1st, 2021 and is approximately 30 minutes outside of Myrtle Beach, SC, a popular tourist destination. The new Conway location is comprised of 10,000 sq ft of warehouse and office space.
The expansion will allow Gold Leaf Distribution to now cover 75-80% of South Carolina. Gold Leaf has identified and will be hiring a VP of Operations for the Conway location. In addition, the Company will be filling two additional sales positions for that location.
Gold Leaf Distribution has added substantial bottom line revenue for Kona Gold Beverage in 2021. Gold Leaf has grown revenues from approximately $330,000 in 2020 to over $770,000 in its first 9 months of 2021. The Company anticipates Gold Leaf to close out 2021 with approximately $1.2 million in sales, approximately a 264% year-over-year growth. With the new Conway, SC expansion, the Company is projecting 2022 Gold Leaf revenues to be $3.5-$5 million.
Key Quotes
“I am extremely proud of our Gold Leaf Distribution team and what they have accomplished this year,” stated Robert Clark, CEO of Kona Gold Beverage, Inc. “In a short amount of time, we have grown Gold Leaf to be the go-to distributor in our markets. We have successfully built a solid team, and with our Conway expansion, we now have the ability to cover the majority of South Carolina, which will be attractive to major brands.”
