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Innovative Beverage Maker Lands Deal With Major Retailer

Stockhouse Editorial
0 Comments| December 12, 2018

Click to enlargeRetail success with consumer products ultimately boils down to a simple equation: developing innovative products that satisfy an identifiable niche in the marketplace, and then combining that with strong marketing and distribution. With Koios Beverage Corp. (CSE: KBEV, OTCQB: KBEVF, Forum), management was already confident that they had found the right niche: functional beverages.

On December 11, 2018; the Company supplied major news on the marketing/distribution front, announcing a distribution deal with GNC, one of the world’s largest retailers of health products. More on this later.

Investors looking for greater details on Koios products can refer to earlier Stockhouse coverage of KBEV. We introduced the Stockhouse audience to this Company in a full-length feature article from May 17, 2018.

“Functional beverages” is still a term that requires explanation for some investors. A functional beverage does more than merely deliver nutrients or produce some general health benefit. As its name implies, functional beverages improve our capacity to function.

Most of us would like to be able to improve performance in one or more ways. From the corporate standpoint, delivering such performance enhancements (safely and naturally) translates into a commercial market for such products. Indeed, the functional beverage market is projected to grow to a USD$105.5 billion space by 2021 [source text-link?].

With KBEV's line of functional beverages, this performance enhancement targets the general heading of improved mental performance. More specifically, Koios's beverages are designed to enhance:

-- brain capacity

-- alertness

-- concentration

-- cognitive function

The Company's proprietary formulations promote these benefits through increasing blood flow, oxygen levels, and neural connections within the brain. In an increasingly competitive world, investors can understand the commercial appeal of such a product line. For investors pondering becoming shareholders, the question is: what is the potential of KBEV to penetrate this large global market?

On December 11, 2018; Koios Beverage Corp. didn't merely supply an answer to that question. It attached an exclamation point.


Who is “GNC”? Only readers with little familiarity with the health supplements market would ask that question.

GNC Holdings, Inc. is one of the world's premier retailers of health & wellness products. Based in Pittsburgh, Penn., GNC distributes its products through approximately 6,400 retail locations in Canada and the United States. This distribution is augmented by franchise operations in approximately 50 international markets.

This vast distribution network translates into enormous revenues: USD$2.7 billion in Q3 2018 alone, with 77% of that total generated by sales in the U.S. and Canada.

Click to enlarge

That level of retail traction will make both product manufacturers and their shareholders salivate. Speaking with Stockhouse Editorial, Chris Miller, CEO of KBEV was very clear in both expressing his enthusiasm over this announcement and connecting the dots for investors.

“GNC is one of the largest and best-known nutritional companies in the world. Working with them is a tremendous honour and something we have envisioned since our inception. From scientific research and new product discovery to the manufacturing and packaging processes, GNC takes pride in its rigorous approach to ensuring quality. We are incredibly confident we can deliver the best products in their category and look forward to tremendous growth opportunities with our new partner in the years to come.”

A vending agreement with GNC translates into enormous visibility for the Company’s unique product line. As strong as these distribution channels are today, Koios (and its shareholders) can expect even greater exposure and revenues going forward.

Next in GNC’s own business plan to increase market penetration and build its revenue base still further is a joint venture with Harbin Pharmaceutical Group Holding. The target market is China – the largest international market for supplements. Harbin is one of the leading pharma and supplements companies in China.

What GNC’s massive consumer base will now have access to are Koios’ “nootropic” functional beverages. Nootropics are an alternative for coffee and caffeine in providing the mental clarity we desire in our day to day life without the excessive stimulation – and addiction – that can come from regular caffeine consumption.

This new distribution agreement builds on Koios’ existing marketing and distribution channels: Companies with an additional 2,000 U.S.-based retail locations and robust e-commerce through being an Amazon choice product.

Analysts currently project the nootropics market to expand at a CAGR of 17.9% from now through 2024. KBEV’s new, major distribution agreement with GNC Holdings is an opportunity to leverage that growth rate through maximizing market share within this space.

For investors looking for robust potential in a new and expanding market, Koios Beverage Corp offers dynamic growth fundamentals.

FULL DISCLOSURE: Koios Beverage Corp. is a paid client of Stockhouse Publishing.

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