Kaival Restarts Pouch Production

Kaival Brands Innovations Group is restarting production of its Bidi Pouch ahead of an anticipated September launch.

The Bidi Pouch rollout had been delayed because of Covid-related manufacturing and supply chain constraints. Due to these complications and to prevent future bottlenecks, the company decided to move manufacturing in-house. One of the few pouch products on the market formulated without the Swedish Match formula, the Bidi Pouch provides a proprietary tobacco-free nicotine formulation packed in a convenient plastic can, according to Kaival Brands.

“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,” said Niraj Patel, founder and CEO of Kaival Brands and Bidi Vapor, in a statement.

“We are excited to launch distribution of the Bidi Pouch and have been working behind the scenes during Covid-based delays to secure initial distribution. To that extent, we are proud to announce that 8,000 points of distribution have been secured and are ready to receive our product,” said Eric Mosser, chief operating officer of Kaival Brands.

The company believes that the nicotine pouch category represents a significant market opportunity. The category has witnessed significant growth recently, with New York-based Nielsen reporting an increase in unit sales of 59.9 percent in U.S. convenience stores over the 52-week period ended June 19, 2021.

This growth is expected to continue as evidenced by publicly available material from MarketResearch.com in which it indicated that the global nicotine pouches market is expected to reach $32.8 billion by the end of 2026, with an expected compound annual growth rate of 54.9 percent through 2026.