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Is Kona Gold Solutions Inc (OTCMKTS:KGKG) About To Breakout?

ByAlex CarlsonPosted on February 21, 2019 SHARE TWEET SHARE EMAIL COMMENTS
Kona Gold Solutions Inc (OTCMKTS:KGKG) is a stock that we have been watching for quite a while here at Insider Financial. Each time the stock has run up, only to run into resistance and drop back down. Now we are asking if KGKG can gather enough momentum to clear $.10 and get above it’s high of $.1249 from back in November. Taking a closer look, this time it might finally happen.


KGKG Daily Chart

KGKG Background

First up, a little background info for those that are not familiar with KGKG. Kona Gold Solutions, Inc., a Delaware Corporation, has created wholly-owned subsidiaries, Kona Gold LLC and HighDrate, LLC. Kona Gold, LLC has developed a premium Hemp Infused Energy Drink line; please visit the Company’s website at www.konagoldhemp.com. HighDrate, LLC has developed the beverage industry’s first CBD Energy Water, available in 4 delicious flavors.

Distribution Deals

KGKG has been signing distribution deals left and right with distributors. The latest deal is with 3 Anheuser-Busch Distributors. The partnership between Kona Gold and River Eagle, Bradley, and Bob Ralph Dist., will cover the southeast of the state of Missouri. All three distributors will distribute the Company’s popular Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters. River Eagle, Bradley, and Bob Ralph Dist. are scheduled to all have March kickoffs in their respective markets, working with Kona Gold’s team to successfully launch Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters.

The biggest deal for KGKG was signed just last month with Kentucky Eagle, Inc. The partnership between Kona Gold and Kentucky Eagle is the Company’s largest distribution deal to date. Kentucky Eagle will distribute the Company’s popular Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters within the great state of Kentucky.



Kentucky Eagle has been servicing Central Kentucky for 71 years and operates out of a new 190,000 square foot facility that is the first Anheuser-Busch LEED Certified distributor in the Nation. Kentucky Eagle’s expansive team consists of 130 vehicles that service over 1,500 accounts in 37 counties, with sales of 4.9 million cases a year. Kentucky Eagle has grown from a beer distributor to a total beverage distributor over the past few years with a portfolio consisting of more than 400 brands of domestic, craft, and import beers, spirits, wines, ciders, specialty beverages, mixers, energy drinks, waters, teas, and food.

400% Jump In Revenues

Last December, KGKG announced that the company had its strongest quarter to date with revenues currently up 400% from the previous quarter. Contributing to the increase in revenue are the Company’s online sales from Amazon and product websites, which are up over 1,300% year-over-year. The Company’s increase in sales comes from the launching of its highly anticipated new Kona Gold flavors, Cotton Candy and Cherry Vanilla, which are both zero calories, have no sugar, are naturally flavored, and contain organic hemp. CEO Robert Clark said:

“We have many exciting things in the pipeline as our sales team is working to finalize deals with several distribution partners and will be announcing a new convenience store partner that will be putting the Company’s products in over 100 stores. We anticipate the Company’s revenue to continue on its current revenue growth path through the end of 2018 and into 2019. Our sales team will be meeting at Kona Gold’s corporate office in the second week of January to forecast growth and sales projections for 2019. The Company will be hiring a controller to take over the books and finalize the audit next month.”

Bottom Line

Currently trading with a market cap of $44 million, KGKG is an exciting story among small caps. With a slew of distribution partners in its network, KGKG is primed to keep growing revenues at a triple-digit pace. With more news likely coming, it’s not a matter of if we will see the breakout we are looking for, but when.