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Flora’s Food and Beverage division, Kasa Wholefoods has signed an initial 1-year distribution agreement to supply food products to Colombia’s largest food distributor, Tropi.
Tropi reaches over 130,000 distribution points across 38 cities in Colombia.
Kasa Wholefoods anticipates this initial agreement to generate additional sales of its CBD and hemp portfolio, expects sales to reach approximately US$2M per month.
TORONTO, July 12, 2021--(BUSINESS WIRE)--Flora Growth Corp. (NASDAQ: FLGC) ("Flora" or the "Company"), a leading all-outdoor cultivator and manufacturer of global cannabis products and brands, is pleased to announce that its food and beverage division, Kasa Wholefoods Company S.A.S. ("Kasa") has signed an initial one-year sales agreement with Importaciones y Asesorias Tropi S.A.S. ("Tropi"). Flora expects this agreement to generate up to US$10 million based on today’s exchange and market rates to deliver premium and sustainable canned products, including products that target the health benefits of hemp seed oil.
Kasa intends on leveraging this initial sales agreement with Colombia’s largest CPG distributor to generate additional sales of its entire product portfolio. This agreement exemplifies Flora Growth’s strategy of building out its distribution channels and sales relationships utilizing high-quality traditional CPG products, with the near-term opportunity to incorporate cannabinoid-containing products to maximize the value of the relationship and amplify revenue growth.
"We believe that this sales agreement is a significant milestone for Kasa. We expect it to generate significant revenue, while allowing our brands to build upon a relationship with one of the leading food and beverage distributors in Colombia," said Jason Warnock, Chief Revenue Officer of Flora. "This agreement connects our established premium and sustainable supply chain to significantly more customers and points of consumer distribution, all the while providing dependable, contracted revenue."
"We’re thrilled about this distribution agreement with Tropi. The breadth of their network and experience in working with health and wellness-focused brands will prove invaluable to our expansion strategy," said Luis Merchan, President and CEO of Flora. "We’re proud to partner with another company that shares a legacy of quality products and serving its communities. Their extensive distribution and logistics models, strong selling capabilities, and complementary brand portfolio will undoubtedly increase our ability to reach consumers."
Flora Announces CEO Fireside Highlighting Recent Developments
Further, Flora Growth will be hosting another live fireside discussion between President & CEO, Luis Merchan, Chief Revenue Officer, Jason Warnock, and Lead Scientific Advisor, Dr. Annabelle Manalo-Morgan. The virtual fireside conversation will take place Thursday, July 15th at 1:00 pm ET, and all those interested in attending are encouraged to register using the following link.
Specifically, Luis and Jason will provide an update on Cosechemos and Flora Lab, and discuss their strategic importance to our international expansion and contributions to revenue growth. This segment will also include a discussion around our holistic CPG strategy, the opportunity with Tropi, and a brief update on the progression of the Hoshi and Heimat transactions (please see the Company’s press releases dated June 7th and June 14th respectively).
Dr. Annabelle will discuss Flora Growth’s science strategy, including her thoughts on cannabinoid research, how cannabis will support medical patients over the long-term, and legislative developments related to cannabis within the United States.
Tropi is a company dedicated to the development of commercial and logistical strategies that allow for the positioning of CPG products across varying categories, through different distribution models, across Colombia. The company was founded in 1996 and is known for providing healthy and quality products through its exceptional customer support team dedicated to satisfying its clients and consumers. Tropi has a presence in more than 900 of the 1,122 municipalities across the nation, with more than 40,000 clients and retail distribution points.
About Flora Growth Corp.
Flora is a cannabis company that leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage. As the operator of one of the largest outdoor cultivation facilities, Flora strives to market a higher-quality premium product at below market prices. By prioritizing natural ingredients and value-chain sustainability across its portfolio, Flora creates premium products that help consumers restore and thrive. Visit www.floragrowth.ca or follow @floragrowthcorp on social for more information.
Cautionary Statement Concerning Forward-Looking Statements
This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: expected future revenue, the ability to execute on the distribution agreement with Tropi; our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this document and other statements made from time to time by us or our representatives may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, or the forward-looking events discussed in this document and other statements made from time to time by us or our representatives not occurring, except as may be required by applicable law.
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