Kona Gold Solutions Inc (OTCMKTS: KGKG) has made significant progress on its bid to become the fastest-growing CBD beverage company. The Company has inked strategic partnerships with the likes of Anheuser-Busch and TJ Distribution all in the effort of strengthening its distribution network.
Kona Gold Price Analysis
The hemp and CBD lifestyle company has already signed deals with sixteen distributors all but expanding its footprint into fourteen states across the U.S. In Addition to strengthening the distribution network Kona Gold is also ramping up its product line.
The Company has already commenced production of hemp energy drink and CBD energy water as it seeks to diversify its product line to take advantage of vast opportunities in the cannabis sector. Considering the wave of positive developments, it does not come as a surprise that Kona Gold shares are flying high in the market.
The stock is already up by more than 50% after shrugging off bearish pressure at the start of the year. A break out from the $0.07 to $0.09 trading range has since opened the door for the stock to continue powering high as part of an emerging uptrend.
After the recent spike high, the $0.14 is the immediate resistance level standing in the way of the stock continued ascendance as a break out play. A pullback from the 0.14 level is staring at support at the $0.10 level. A violation of the $0.10 support could result in Kona Gold going back to trading in the $0.09 to $0.07 trading range.
What does Kona Gold Do?
Kona Gold is a Delaware corporation operating as a beverage company. The Company has developed a line of premium Hemp infused Energy Drink line. It has also developed the industry first CBD energy water currently available in four flavors.
Distribution Network Expansion
Shares of Kona Gold are skyrocketing on the Company establishing a robust distribution network that signals a potentially record-setting year on revenue growth. The Company has already set foot in fourteen states on signing distribution deals with sixteen new distributors.
As it stands the Company’s Gold Hemp Energy Drinks as well s HighDrate CBD Energy Waters are currently available in some of the biggest markets in California, Texas, Washington, and Indiana among others.
The expansion drive has helped the Company grow its market share in the hemp and CBD infused beverage sector. In addition, the Company is experiencing a steady increase in sales with monthly revenues in the upwards of $160,000.
“The Company is growing its market presence at its fastest pace to date, and our revenue is a reflection of that growth. This month, Kona Gold has moved the largest amount of product it has ever moved in a one-month timeframe, over 10,000 cases, and with our new flavors launching next month, we do not anticipate that to slow down,” stated CEO Robert Clark.
In addition to expanding the distribution network, Kona Gold also continues to expand its product line as it seeks to grow its market share when it comes to sales. The Company has already commenced the production of a new range of Hemp Energy Drink and CBD Energy Water flavors.
The hemp energy drink line will consist of bubble gum and candy apple flavors. The HighDrate line, on the other hand, will comprise of Blue Island Punch and Sour Apple. With the expanded product line Kona Gold continues to register robust growth on sales Q1 revenues having come in at record highs of $260,000.
“Our Company has been growing at a blistering pace and these added flavors will not only give our brands a larger presence but will add substantial revenue at launch. This quarter we will see our beverage product offering grow from our current 11 SKUs to 17 SKUs, which is a substantial expansion,” added Mr. Clark.
Buoyed by the robust growth experienced over the past few months, the management has moved to tighten the Company’s current share structure to increase shareholder value as well as confidence. The Company has since completed the retiring of 650,000 shares of Preferred Series B stock.
For investors looking for high reward exposure in the cannabis sector, Kona Gold is an ideal pick. The Company is growing at an impressive rate thanks to the product line expansion as well as the signing of distribution deals.
A spike in share price attests to growing investor confidence about the stock’s long-term prospects. A pullback from all-time highs might as well have presented an opportunity to bet on another leg higher.
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Disclosure: We have no position in KGKG and have not been compensated for this article.