Melbourne, Fla.-based Kona Gold Beverage, parent company of Kona Gold LLC and Gold Leaf Distribution LLC, took the first step in growth plans by raising $3 million in capital via a Securities Purchase Agreement (SPA) with YA II PN Ltd., the company announced.
Kona Gold Beverage is a holding company focused on product development in the better-for-you and hemp and CBD functional beverage sector. It will use the proceeds to facilitate growth across those subsidiaries.
“We have experienced fantastic growth in 2021 across all subsidiaries, hitting record revenues in 2021, and this recent round of funding will assist in accelerating that growth,” said Kona Gold Beverage CEO Robert Clark. “We have a lot of exciting things happening across the company, including the expansion or our team from just nine employees at the start of 2021 to 20 employees by the end of the year.”
Kona Gold LLC will rebrand its Kona Gold Hemp Energy line and extend its Ooh La Lemin brand product line. Additionally, the company will begin an extensive marketing push for all brands, which will include hiring key positions, such as territory managers and a chain stores focused representative.
“Our team is currently working on line extensions for our Ooh La Lemin brand,” added Clark, “and we will be hiring a national branding firm to lead our efforts in rebranding and refreshing our popular Kona Gold Hemp Energy Drink line.”
Gold Leaf Distribution proceeds will be used for opening new distribution operations in new markets, which will include warehouse space, delivery vehicles and multiple new hires.
“Our Gold Leaf Distribution subsidiary has been a bright spot within the company,” Clark noted. “Gold Leaf has expanded to six employees, six beverage trucks and two locations. We will be expanding our Gold Leaf operation to include additional locations, which is a huge undertaking, but we have created a great model that we can replicate in other markets.”
Kona Gold Beverage Inc. also owns CBD-infused energy water maker HighDrate LLC. Kona Gold Beverage recently acquired S&S Beverage Inc., which manufactures and distributes LEMIN Superior Lemonade line.