Kaival Brands Innovations Group, Inc. (NASDAQ:KAVL) ("Kaival Brands," the "Company," or "we"), is the exclusive global distributor of products manufactured by Bidi Vapor LLC ("Bidi
Kaival Brands Innovations Group, Inc. (NASDAQ:KAVL) ("Kaival Brands," the "Company," or "we"), is the exclusive global distributor of products manufactured by Bidi Vapor LLC ("Bidi Vapor"), including the BIDI® Stick disposable electronic nicotine delivery system ("ENDS"), which is intended exclusively for adults 21 and over. Bidi Vapor announced today that 80% of adult participants in a recent survey of e-cigarette users and cigarette smokers in the United Kingdom ("U.K.") preferred the BIDI® Stick over their current options.
Charlotte, N.C.-based market research firm, Voccii LLC, conducted a survey in the U.K. to better understand how the BIDI® Stick would perform abroad. The survey concluded that "any of the flavors should do well in the market…," with over 80% of the current vape users in the product survery preferring the BIDI® Stick over their current vaping device. This conclusion cuts across device type, as the BIDI® Stick was compared against open-systems, cartridges/pods and other disposable e-cigarettes.
"While the U.S. e-cigarette market numbers have shown that consumers prefer the BIDI® Stick, we are ecstatic to see that the U.K. market research results confirms that the 2% nicotine BIDI® Stick is similarly preferred by adult e-cigarette users and smokers in the U.K.," said Niraj "Raj" Patel, president and CEO of Bidi Vapor and Kaival Brands.
"From a market perspective, the U.K. has unique regulatory standards that help with direct comparisons between competing devices. For instance, all e-cigarettes must have no more than 2% nicotine levels and tank sizes cannot surpass 2 ml," Mr. Patel said.
"It's comforting to know you're competing on a level playing field," Mr. Patel said. "Standardizing certain product attributes means that the participants in the survey prefered whatever is unique about your product, whether it's formulation, quality or how it delivers nicotine. It is exciting to see the real potential of the the BIDI® Stick to help U.K. smokers who are unwilling or unable to quit to find alternatives to cigarettes.
The survey involved 101 adult users of vaping products and combustible cigarettes in the U.K. and tested preferences between four BIDI® Stick flavors at 2% nicotine with the products that the subjects normally used. The product testing took place from October 2, 2021 to October 18, 2021 and involved a spectrum of people of legal smoking age. Of the 101 participants, 51 participants tested "menthol" samples and 50 participants tested "non-menthol" samples. Bidi Vapor and Kavial Brands announced in October 2021 that they were augmenting their focus on specific international markets where they have full market and product approvals to distribute the entire BIDI® Stick product line (including non-tobacco flavors).
While flavored e-cigarettes face significant challenges in the U.S. market, these products remain legal in much of the world. Throughout the past twelve months, Bidi Vapor has received marketing and distribution approval in 11 global markets, including the U.K. and Russia. Given the favorabe dynamics of the U.K. market, Bidi Vapor and Kaival Brands are now focusing substantial time and strategic efforts on targeting the U.K. market, officials said. Kaival Brands believes that it has the budget to commit to marketing, staffing and executing a successful marketing strategy in the U.K. Simultaneous to building out the U.K. infrastructure, Kaival Brands is actively discussing formalizing international distribution agreements with some of its current U.S. customers who also have global distribution capabilities.
Mr. Patel, Kaival Brand's President and Chief Executive Officer, owns and controls Bidi Vapor. As a result, Bidi Vapor and Kaival Brand are considered under common control and Bidi Vapor is considered a related party.