Kona Gold Beverage, Inc. Announces Sale of Ooh La Lemin Lemonade
Brand
Company is shifting focus to distribution subsidiary to reach
profitability
Melbourne,
FL -- October
4, 2023 --
InvestorsHub NewsWire -- Kona Gold Beverage, Inc. (OTCPK:
KGKG), a holding company focused on product development and
distribution in the better-for-you and functional beverage sector,
has announced the Company has sold its Ooh La Lemin Lemonade brand
to Sprecher Brewing Company.
Kona Gold
Beverage has grown Ooh La Lemin over the last three years to 10
SKUs and has built a solid foundation and following for the
brand.
Sprecher
Brewing Company's purchase of Ooh La Lemin is part of that
company's aggressive growth strategy that has been in place since
2020 and will be creating a new All Natural Beverage Category with
the acquisition of Ooh La Lemin.
Kona Gold
Beverage, with the sale of Ooh La Lemin, will be shifting its focus
to its Gold Leaf Distribution
subsidiary.
Gold Leaf
Distribution had positive trends in profitability for several
months and a proven track record.
The Company
feels that the drastic reduction in overhead at its beverage
subsidiary and the restructuring of the Company to grow its Gold
Leaf Distribution operations, will provide the best chance for the
Company to become profitable in 2024.
"I am
pleased to share with our stockholders the sale of our Ooh La Lemin
brand and the restructuring of our operations to focus on our
distribution business in order to give the Company the best chance
at becoming profitable," stated Robert Clark, CEO of Kona Gold
Beverage, Inc. "It was an extremely difficult decision to sell our
Ooh La Lemin brand, but we knew, in order to give the brand a
chance to aggressively grow nationally and for our Company to
survive, the sale was a business decision we had to
make.
Our
beverage subsidiary was operating at a negative cashflow on a
monthly basis and strategic business decisions had to be made to
remedy that.
By shifting
focus to our Gold Leaf Distribution subsidiary, which was
operationally profitable in January of this year, we have the
potential to become profitable again in a short amount of
time."
Clark
continued, "We still have a very strong following for our Kona Gold
Energy Drinks and the Company still has plans to reproduce its
rebranded energy drinks.
We continue
to sell our HighDrate Energy Waters online and will continue with
that brand as well."
For more
information regarding Kona Gold Beverage, please visit:
https://konagoldbeverage.com/
About Kona
Gold Beverage, Inc.
Kona Gold
Beverage, 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 its 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 its website
at
www.highdrateme.com.
Gold Leaf
Distribution, LLC was created to fill the Company's distribution
needs in markets that it wants to enter quickly; please visit its
website at
www.goldleafdist.com.
Kona Gold
and its family of companies are located on the east coast of
Florida in Melbourne and in Greer, South Carolina.
Safe Harbor
Statement:
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. The
Company may also make written or oral forward-looking statements in
its filings with the U.S. Securities and Exchange Commission, in
press releases and other written materials, and in oral statements
made by its officers, directors or employees to third
parties.
There can
be no assurance that such statements will prove to be
accurate.
The Company
cautions that these forward-looking statements are further
qualified by other factors including, but not limited to, those set
forth in the Company's Annual Reports on Form 10-K and its other
filings with the Securities and Exchange
Commission.
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. The
Company does not undertake any obligation to update publicly or to
revise any statements in this release, whether as a result of new
information, future events, or otherwise.
Investor
Relations Contact:
Robert
Clark
844-714-2224
investorrelations@konagoldbeverage.com
