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Flora’s food and beverage division, Kasa Wholefoods previously announced that it had signed an initial 1-year distribution agreement to supply food products to Colombia’s largest consumer packaged goods distributor, Tropi.
Tropi has more than 130,000 distribution points across 38 cities in Colombia.
Kasa Wholefoods anticipates the agreement to generate additional sales of its CBD and hemp portfolio to Tropi; expects sales to reach approximately US$2M per month.
MIAMI, August 10, 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 completed its first purchase order, valued at approximately US$1.1M, to Importaciones y Asesorias Tropi S.A.S. ("Tropi") as part of the sales agreement announced in July. Flora expects Kasa to complete similar deliveries on a monthly basis moving forward.
Kasa intends on leveraging this initial sales agreement with Colombia’s largest consumer packaged goods ("CPG") distributor to generate additional sales of its entire food and beverage product portfolio in Colombia. Given the recently announced cannabis law changes in Colombia that will allow for the production and marketing of cannabinoid-containing ingestible products, Kasa will look to maximize the value of the relationship and amplify revenue growth of its CBD product portfolio. This agreement exemplifies Flora Growth’s strategy of building out its distribution channels and sales relationships utilizing high-quality traditional CPG products, underpinned by its low-cost, high-margin cannabis raw materials.
"We believe this initial sale demonstrates Flora’s ability to rapidly follow through on its commitments and marks a major turning point for our Kasa Wholefoods division. We expect this relationship with Tropi to generate significant revenue potential in both the short and long term as we build upon a relationship with the leading food and beverage distributor in Colombia," said Jason Warnock, Chief Revenue Officer of Flora. "Moving forward, we will work to increase monthly sales to our target of US$2M, including foraying into the newly permitted product category of cannabis-containing ingestible products that will offer increased wellness properties for end consumers."
About Importaciones y Asesorias Tropi S.A.S.
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: the Company’s commercial arrangement with Tropi; the size of markets for cannabis and cannabis products; 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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