MELBOURNE, Florida, May 21, 2020 /PRNewswire/ -- Kona Gold Solutions, Inc. (OTCQB: KGKG), a hemp and CBD lifestyle brand focused on product development in the functional beverage sector, is pleased to announce an increase in sales during the second quarter of 2020. The Company has reported an increase of sales in its wholly owned subsidiaries, Kona Gold LLC and Gold Leaf Distribution LLC.
Kona Gold's statewide distributor in Alabama, Alabev, hit their Q1 target numbers in sales of Kona Gold's hemp energy drinks, and excitement around the brand has grown. The two companies worked together on an incentive program to get product into the market, which was extremely successful. The Company's statewide distributor in Michigan, which currently distributes Kona Gold's hemp energy drinks, will be bringing the Company's HighDrate CBD Energy Waters and Storm CBD Waters into their markets next month.
Kona Gold is currently in discussions with large distribution houses in Florida, Virginia, West Virginia, Wisconsin, Minnesota, and Kansas. The Company continues to work with a large Southeast grocery chain to brings its Kona Gold Hemp Energy Drinks into their stores. As the economy begins to open up and loosen restrictions associated with COVID 19, the Company has seen an increase in engagements to bring its products to new distributors and retail locations.
Gold Leaf Distribution, who distributes Kona Gold products and other beverage products in Florida and South Carolina, continues to experience month-over-month growth and is having a record month in May. Gold Leaf delivers product to almost 700 retail locations, including over 200 Circle K's, BI-LO's, Piggly Wiggly's, 7-Eleven's, BP's, and many various independent retail locations.
"With states reopening and restrictions loosening up due to COVID 19, we are now seeing an increase in orders and demand for our products," stated Robert Clark, CEO of Kona Gold Solutions, Inc. "The Company made a strategic move late last year to pursue larger distributors and we are now seeing those efforts pay off with the success in Alabama and Michigan in our statewide distribution there. We have seen an increase in distributor orders this month and anticipate June to be a strong month for sales as the Country shifts back to a bit of normalcy."
Clark continued, "Recently, Anheuser-Busch distributors around the country that had exclusive contracts to distribute a leading energy drink, had those contracts terminated as Pepsi Co is now taking over distribution of that brand. This has created opportunities in many states and our team has already begun reaching out, sending samples, and setting up meetings with many of these distribution houses."
Kona Gold continues to support its projections of $6-8 million in revenue for 2020. The COVID 19 pandemic has impacted the Company with a slow start in 2020, but current pipeline fill and developments have the Company on pace to hit those numbers in the second half of 2020.
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Kona Gold Solutions, Inc., a Delaware Corporation, has created wholly owned subsidiaries, Kona Gold LLC, HighDrate, LLC, and Gold Leaf Distribution, LLC. Kona Gold, LLC has developed a premium Hemp Infused Energy Drink line; please visit the Company's website at www.konagoldhemp.com. HighDrate, LLC has developed the beverage industry's first CBD Infused Energy Water, available in 6 delicious flavors; please visit the Company's website at www.highdrateme.com. Gold Leaf Distribution, LLC was created to fill the Company's distribution needs in markets it wants to quickly enter; please visit the Company's website at www.goldleafdist.com. The Companies are located on the east coast of Florida in Melbourne and Greer, South Carolina.
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The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control.
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