Kaival Brands (KAVL) Enters into Agreement with Philip Morris International (PM) for International Distribution of Electronic Nicotine Delivery System Products


News and research before you hear about it on CNBC and others. Claim your one week free trial for StreetInsider Premium here.


Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) (“Kaival Brands”, the “Company” or “we”), the U.S. distributor of all products manufactured by Bidi Vapor, LLC (“Bidi Vapor”), which are for legal age nicotine users, today announced that it has entered into an agreement with Philip Morris Products SA (“PMPSA”), a wholly owned subsidiary of Philip Morris International Inc. (“PMI”) (NYSE: PM ), for the development and distribution of electronic nicotine delivery system (“ENDS”) products in markets outside of the United States, subject to market (or regulatory) review.

Kaival Brands signs an agreement with Philip Morris International for international distribution

The newly formed company’s wholly owned subsidiary, Kaival Brands International, LLC (“KBI”) entered into an international licensing agreement with PMPSA on June 13, 2022 (the “International Agreement”). The international agreement grants PMPSA a license to certain intellectual property rights relating to Bidi Vapor’s premium ENDS device, known as BIDI® Stick in the United States, as well as potentially newly developed devices, to enable PMPSA to manufacture, promote, sell and distribute such ENDS device and newly developed devices in international markets outside of the United States. The parties believe that this agreement promotes their shared vision of a smoke-free future.

“We believe that in addition to the BIDI® Stick being widely accepted by legal age nicotine users in the United States, Bidi Vapor’s many decisions regarding design; responsible marketing focused on adults and Strict youth access prevention measures and sustainability have enhanced its appeal to PMI,” said Niraj Patel, CEO of Kaival Brands. “We, along with PMI and Bidi Vapor share the vision of a smoke-free future. The BIDI® Stick offers legal age nicotine users a high quality alternative to cigarettes that satisfies their taste preferences. Additionally, we, along with Bidi Vapor, are committed to prioritizing proper regulation and responsible marketing, including taking necessary steps to ensure that these products do not appeal to unintended audiences, including including young people. For example, Bidi Vapor does not engage in online direct-to-consumer sales and requires age-verification contracts with our distributors and resellers.

“As Bidi Vapor continues to seek marketing authorization for tobacco products from the United States Food and Drug Administration, cooperation with a large multinational like PMI, a leader in scientifically proven smokeless products, opens doors globally. Kaival Brands looks forward to a long and successful relationship with PMI, to accelerate smoking cessation.”

PMI offers a multi-category portfolio of smoke-free products in a variety of use, taste, price and technology options, intended to accelerate the delivery of a smoke-free future. “We believe that adding PMI’s extensive network of potential business partners to our portfolio will potentially create a substantial new revenue stream for us,” Mr. Patel said.

“We have previously mentioned our intention to expand our current portfolio of smoke-free products for adults who would otherwise continue to smoke cigarettes or use other nicotine products. This agreement supports that vision and is another step towards accelerating the realization of a smoke-free future. We are delighted to begin our agreement with Kaival Brands, led by CEO Niraj Patel, who shares the same vision as us, to accelerate the end of cigarette consumption fuels,” said PMI E-Vapor President Ashok Rammohan.

“We are grateful to have the opportunity to work with such an established and respected organization as PMI and its management team led by Chief Executive Jacek Olczak,” Mr Patel said. “But most important to us was our mutual core values ​​of strictly compliant manufacturing combined with responsible, adult-focused marketing of products people can trust. That’s the only way we can truly help adult smokers across the world. world. To that end, we want to replace cigarettes with smoke-free products as quickly as possible. We look forward to hearing about international market launches and are excited to hear where this deal may lead.”

ABOUT BIDI STEAM

Based in Melbourne, Florida, Bidi Vapor maintains its commitment to responsible adult-focused marketing, strict youth access prevention measures and age verification standards, and sustainability through its program BIDI® Cares Recycling Kit. Bidi Vapor’s device, the BIDI® Stick, is a premium product made with high-quality components, a UL-certified battery, and technology designed to deliver a consistent vaping experience for adult smokers 21 and older. Bidi Vapor is also adamant about strict adherence to all federal, state, and local guidelines and regulations. At Bidi Vapor, innovation is key to its mission, with the BIDI® Stick promoting environmental sustainability, while providing a unique vaping experience for adult smokers.

For more information, visit www.bidivapor.com

Comments are closed.