Tag: Kaival Brands Innovation Group

Kaival Brands Reports Second-Quarter Results
Kaival Brands Innovations Group reported revenue of $18.1 million for its fiscal second quarter, which ended April 30, 2021.
The company also received two significant Bidi Stick orders with a combined value of $41.6 million. According to Kaival Brands CEO Niraj Patel, these orders represent some of the largest individual orders since the company started business. “We believe [they] are indicative of our robust pipeline for the innovative Bidi Stick and our shift to large wholesalers and distributors versus smaller retailers,” he said in a statement.
“This shift in strategy also helps us remain an industry leader in our effort to continually exceed Prevent All Cigarette Trafficking (PACT) Act compliance requirements. The Bidi Stick experience is unrivalled as evidenced by our leading market share within the ENDS category,” said Patel.
While the potential contract values of additional national retailers are significantly higher than those of smaller retailers and wholesalers, the process to navigate these contracts is more onerous and time consuming, according to Kaival Brands. However, Patel believes such contracts are worth the investment because the company expects more large orders to follow.
Kaival Brands recently received approval to market and sell Bidi Vapor products in 11 countries. Despite Covid-19 related delays in building its international infrastructure, the company is confident it soon will be able to launch the Bidi Stick in the U.K. as well.
Kaival Brands is also enthusiastic regarding the opportunity for its Bidi Pouch, which has been developed without Swedish Match intellectual property.
June 22, 2021
Kaival and Bidi Vapor Continue Cooperation
Kaival Brands approved an amended and restated distribution agreement, which sets forth the terms of the formal relationship between Kaival Brands and Bidi Vapor. The newly amended and restated distribution agreement extends the previous one-year, annually renewable term to an initial term of 10 years, which automatically renews for another five-year term provided that Kaival Brands satisfies certain minimum purchase thresholds.
The newly amended and restated distribution agreement also provides Kaival Brands with a right of first refusal in the event Bidi Vapor receives an offer that would constitute a “change of control transaction” as well as a right of first refusal to act as the exclusive distributor of any and all future products of Bidi Vapor that arise out of or related to electronic nicotine-delivery systems (ENDS) and components related to ENDS, arise out of or relate to the synthetic nicotine industry, or arise out of or related to the tobacco-derived nicotine industry.
“We believe the amendments to the distribution agreement further bolsters the commitment between the two companies,” said Niraj Patel, president, CEO and chief financial officer, in a statement. “The relationship between Kaival Brands and Bidi Vapor during the past 12 months has been fruitful, with Kaival Brands generating approximately $100 million in revenues during the previous 12 months from the sale of the Bidi Stick and expanding its distribution of the Bidi Stick to more than 50,000 stores.”
April 22, 2021
Bidi Vapor Expands Internationally
Bidi Vapor successfully completed the regulatory process to enter seven additional international markets, bringing the total of new international countries open for distribution to 11.
These new international markets include Spain, France, Italy, Germany, the Netherlands, Austria and the Czech Republic. Previously, on March 31, 2021, Kaival Brands announced that Bidi Vapor obtained market authorization for four countries: Australia, New Zealand, Russia and the United Kingdom.
“We are very excited about pursuing our international opportunities,” said Niraj Patel, CEO of Kaival Brands, in a statement, noting how the countries posed both challenges and opportunities that the company is ready to take on.
Kaival Brands is the exclusive distributor for Bidi Vapor’s primary offering, the Bidi Stick, which is the subject of a premarket tobacco product application now under review with the U.S. Food and Drug Administration.
April 19, 2021
Bidi Vapor Enters Four New Markets
Bidi Vapor successfully completed the regulatory process to enter four new, significant markets. Bidi Vapor’s primary offering, the Bidi Stick is a closed system disposable electronic nicotine-delivery system (ENDS).
Bidi Vapor recently successfully received premarket authorization from the United Kingdom’s regulatory body, the Medicines and Healthcare products Regulatory Agency, to sell and market Bidi Vapor products through Kaival Brands in the U.K.
Moreover, Bidi Vapor has successfully completed all necessary certifications and finished the process for distribution approvals to market and sell products in Russia, New Zealand and Australia.

Once Kaival Brands solidifies local distribution agreements, we will begin to sell and market our full scope of products.
Niraj Patel, CEO, Kaival Brands
“We are extremely excited to roll out Bidi Vapor products in four significant, new markets for us,” said Niraj Patel, Kaival Brands’ CEO, in a statement. “Once Kaival Brands solidifies local distribution agreements, we will begin to sell and market our full scope of products. We believe our first sales in each of these new regions will occur within the next six months with U.K. being the first.”
Kaival Brands will showcase its Bidi Stick at the VOXPO virtual trade show on April 28–30.
“We believe the Bidi Stick will be a welcomed entry into the U.K. market as long-time adult cigarette smokers look to transition to ENDS products,” said Patel, who is also president and CEO of Bidi Vapor.
“While the VOXPO conference is our first international show, we anticipate participating in similar events in Australia, New Zealand and Russia. We see ample opportunity in these new markets, as the success we’ve seen in the United States shows us that once consumers discover an e-cigarette that can provide them a consistent, premium experience, they will welcome the option.”
March 31, 2021
Kaival Appoints New Board Members
Kaival Brands Innovations Group has appointed Paul Reuter, Carolyn Hanigan and Roger Brooks to its board of directors.
In addition to gaining the experience and judgment that the new members will bring to the board, their appointments are intended to ensure the company complies with certain corporate governance rules ahead of its planned Nasdaq uplisting.
“We are very pleased that Paul, Carolyn and Roger have agreed to join us as new members of the board,” said Niraj Patel, CEO of Kaival Brands, in a statement. “Coming off a remarkable year that demonstrated the strength of our team and products, these three individuals are joining the company at an exciting time. We look forward to benefiting from their diverse backgrounds and respective expertise.”
Reuter brings nearly five decades of industry experience in small box retail as a journalist, editorial director, entrepreneur and speaker. He has launched two businesses, including MidWest Retail Group, where he served as chairman and founding partner from April 2013 through June 2019. He is also the founder of Kreative Collaborations, an industry consultancy.
Prior to her retirement, Hanigan was the president of Reynolds American Innovation Co., an operating company of Reynolds American Inc. (RAI). Hanigan led the global vapor collaboration with British American Tobacco (BAT) up until RAI was acquired by BAT in 2017.
Coming off a remarkable year that demonstrated the strength of our team and products, these three individuals are joining the company at an exciting time.
Niraj Patel, CEO, Kaival Brands
She was the architect of RAI’s U.S. reduced-risk products strategic direction to further the vision of transforming tobacco. Under her leadership, RAI prepared both the U.S. commercial execution and regulatory applications for the Glo tobacco-heating products, the Velo nicotine pouches, and the Alto, Ciro, Vibe and Solo nicotine vaporizers.
Brooks is currently the chairman, treasurer and co-founder of Abierto Networks. Prior to his roles at Abierto Networks, from 1998 to 2008, Brooks was the lead independent director and member of the compensation and audit committees for Moldflow Corp. From 2017 to 2019, Brooks served as an independent director of Lytron Incorporated.
Kaival Brands recently reached $100 million in revenues.
March 22, 2021
Kaival Brands Reaches $100 Million in Revenue
Kaival Brands Innovations Group reported significant revenue and profitability milestones in the quarter ended Jan. 31, 2021. The company achieved a cumulative $100 million in revenues since it commenced business operations in March 2020, despite revenue slowdowns during the fourth quarter of 2020 due to packaging and labeling updates.
During the fourth quarter of 2020, the company and Bidi Vapor made the decision to wash out inventory and repackage the entire product line in an effort to go “above and beyond” U.S. Food and Drug Administration packaging and labeling guidelines.
First quarter 2021 revenues were $37.3 million compared to revenues of $0 in the first quarter of 2020. “Given the significant expenses associated with infrastructure, startup costs, marketing, legal and many other business necessities, we are proud of our ability to reach profitability so early on in our development,” said Niraj Patel, Kaival’s president and CEO, in a statement.
“The gross profit number provides a glimpse into our future net profits as we continue to scale the business in a smart and efficient operational manner.”
The gross profit number provides a glimpse into our future net profits as we continue to scale the business in a smart and efficient operational manner.
Niraj Patel, president and CEO, Kaival
From a revenue perspective, February and March have benefited from the company’s new distribution partnerships as well as the rollout of the Bidi Pouch. As such, the company expects revenues to increase during the second fiscal quarter ending April 31, 2021. “Given our current visibility, we remain very confident in our full-year fiscal 2021 revenue guidance of $400 million to $450 million,” Patel said.
March 18, 2021
Bidi Vapor Enters Pouch Market

Photo: Bidi Vapor
Bidi Vapor will soon launch the Bidi Nicotine Pouch. Engineered to provide a premium smokeless nicotine experience to its users, the Bidi Pouch is made from a tobacco-free nicotine formulation.
The Bidi Pouch takes advantage of Bidi Vapor’s proprietary nicotine-delivery method on the heels of the growing popularity of the company’s premium vape pen, the Bidi Stick. Having established a strong wholesale-distribution network with its premium vape pen, the Bidi Stick will allow for immediate distribution of the Bidi Pouch through existing channels, Bidi Vapor wrote in a press statement.
Worldwide, the nicotine-pouch sector is projected to grow to $3.35 billion by 2025, up from $637.8 million in 2019, according to Market Study Report. The category has continued to explode recently, with New York-based Nielsen reporting an increase in unit sales of 498 percent in U.S. convenience stores over the 24 weeks ending May 30, 2020.
“We are excited to introduce the Bidi Pouch to adult consumers,” said Niraj Patel, CEO of Kaival Brands Innovations Group, which has an exclusive partnership and distribution deal with Bidi Vapor. “This is one of several initial steps we are taking towards our goal of providing improved products that are more sustainable.”
November 3, 2020
Marketing Authorization Requested for Bidi Stick

Photo: Kaival Brands Innovation Group
Bidi Vapor has submitted a premarket tobacco product application (PMTA) to the U.S. Food and Drug Administration (FDA) for its Bidi Stick, according to Kaival Brands Innovations Group, the exclusive worldwide distributor of the Bidi Stick.

The application details 11 flavored varieties with nicotine concentrations of 6 percent weight/volume as part of the company’s proprietary e-liquid formulation.

Bidi Vapor’s application runs more than 285,000 pages, providing science-based evidence demonstrating that Bidi Sticks are “appropriate for the protection of public health.” The applications further support the public need to provide options to adult smokers of combustible tobacco products.

“Both Kaival Brands and Bidi Vapor fully support proper regulation of the category so that all ENDS products meet the highest manufacturing, safety and marketing standards for adult smokers, with the ultimate goal of improving the public health,” said Niraj Patel, president and CEO of Kaival Brands. “We look forward to working with Bidi Vapor as they work with the FDA to construct its regulatory policy based on science and facts.”

September 9, 2020