Kona Gold Beverages,
Inc. Acquires Surge Distribution LLC from Loud Beverage Group, Inc.
(LBEV)
Surge Distribution
Anticipates Achieving $5 Million in Annual Revenue
MELBOURNE, FL -- April 16, 2024 --
InvestorsHub NewsWire -- Kona Gold Beverages, Inc. (OTCPK:
KGKG), a leading holding company specializing in innovative
product development within the better-for-you and functional
beverage sector, proudly announces its acquisition of Surge
Distribution LLC from Loud Beverage Group, Inc. (OTCPK:
LBEV) This strategic maneuver underlines Kona Gold's steadfast
commitment to bolstering its distribution capabilities and
expanding its footprint within the rapidly burgeoning functional
beverage industry.
Surge Distribution LLC, renowned for
its dynamic presence in the distribution sector, is already on
course to achieve an impressive $5 million in annual revenue in
2024. With this landmark acquisition, Surge Distribution seamlessly
transitions into the fold of Kona Gold Beverages, Inc., operating
as a wholly owned subsidiary. This move exemplifies Kona Gold's
unwavering dedication to broadening its product reach and
delivering unparalleled distribution services to its discerning
clientele.
Under the terms of the agreement, Kona Gold Beverage will purchase
Surge Distribution for $1.5 million in preferred stock from Loud
Beverage Group. Additionally, shareholders of Loud Beverage Group
(Ticker: LBEV) will benefit from a generous 1:1 dividend of Kona
Gold Beverage's common stock (Ticker: KGKG). Both companies are
excited about the future synergies this partnership will create and
the opportunities it will unlock for both companies.
This announcement comes on the heals of
the Company's announcement last month regarding the acquisition of
Covert, LLC, a pioneering company in the consumer package goods
(CPG) market specializing in high-quality, high-potency Delta-8,
THCa, THC-P, and Kratom products. Covert, LLC has projected revenues of
$12m+ for 2024.
Setting its sights on lucrative
markets, including Charlotte, North Carolina, Central Florida,
Tampa, FL, and Jacksonville, Florida, throughout 2024 and 2025, the
company anticipates capitalizing on significant growth
opportunities in these regions, as underscored by recent industry
forecasts.
"We are delighted to herald the
acquisition of Surge Distribution LLC," remarked Brandon White,
President and Chairman of Kona Gold Beverages, Inc. "This strategic
initiative perfectly aligns with our overarching growth objectives
and fortifies our market position. Surge Distribution has
consistently demonstrated remarkable performance, and we are
confident that its integration into our operations will further
catalyze our trajectory of growth."
Surge Distribution harbors ambitious
plans for expansion, with aspirations to double its revenue
projection by 2025. With Kona Gold's extensive resources and
unparalleled expertise, Surge Distribution is poised to realize
these ambitions and foster even greater success in the ensuing
years.
"We recognize the immense potential
embedded within Surge Distribution and eagerly anticipate
championing its growth endeavors," White added. "In unison, we will
harness synergies to optimize operational efficiency and deliver
exceptional value to our esteemed clientele and
shareholders."
This acquisition serves as a pivotal
milestone for Kona Gold Beverages, Inc. as it continues to pioneer
innovation and augment its presence within the dynamic functional
beverage landscape.
Brandon Spikes, former NFL linebacker
and owner of Surge Distribution parent company, Loud Beverage
Group, shared his insights on the acquisition, emphasizing his past
successful collaborations with Brandon White and their shared
vision for Surge Distribution's future.
"I take immense pride in Surge
Distribution's growth and trajectory," stated Spikes.
"Transitioning to an up-and-coming company with a robust management
team aligns with our vision for sustained success. We aim to focus
our efforts and resources on areas where we see the greatest
potential, diverging from previous differences in management
approaches. This acquisition marks a new chapter of growth and
prosperity for Surge Distribution, and I am thrilled to lead the
company into this exciting phase and sit on Kona Gold Beverage's
board as a director."
For more information regarding Surge
Distribution Company, please visit: https://surgedist.com/
About Kona Gold Beverage, Inc.
Kona Gold Beverage, Inc., operates as a
holding company in the beverage industry. Through its
subsidiaries, Kona Gold LLC and Covert LLC, it offers a
diverse range of healthy energy drinks and
products. Kona Gold's premium line of energy drinks
caters to health-conscious consumers, alongside its
innovative HighDrate D9 Drinks. Covert LLC specializes in
high-quality products, including
Delta-8, THCa, THC-P, and Kratom. Headquartered
in Melbourne,
Florida, Kona Gold Beverage, Inc. is actively engaged
in expanding its market presence through strategic
acquisitions.
For more information
regarding Kona Gold Beverage, please
visit: https://konagoldbeverage.com/
Investor Relations Contact:
Phone: 844-714-2224
Email: investorrelations@konagoldbeverage.com
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.
