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Summary: Understanding KGKG's Main Revenue Sources—and What That Means For You

Ever stumbled upon a company and wondered, “Where does all their money actually come from?” Recently, I dug deep into KGKG, a name that pops up whenever people discuss the evolution of wellness beverages and CBD-infused products in the US. If you’re considering investing, partnering, or even just buying stock for fun, knowing their main revenue streams is not just detective work—it’s practical wisdom.

In this article, I’ll walk you through the different ways KGKG fills its bank account, take you step-by-step through real examples, intersperse my own experience analyzing the market, and (just for fun) even contrast how US trade rules shape companies like KGKG differently from what you’d find in, say, the EU. I even got a market analyst on the record for a few juicy insights (spoiler: retail partnerships matter more than you think).

KGKG’s Business Model: How They Make That Cash

First off, some context—if you haven’t followed the rise of CBD wellness drinks, KGKG (Kona Gold Beverage, Inc., OTC: KGKG) has been pushing the envelope, especially since the 2018 Farm Bill loosened some hemp rules in the US (see the U.S. FDA’s summary here: FDA CBD Guidance).

Basically, the main sources of KGKG’s revenue break down into:

  • Direct beverage sales: Their flagship lines include hemp-infused energy drinks (yep, the kind you see in weirdly lit convenience store fridges) and specialty "clean energy" beverages. These fly off shelves in some states more than others. I once mistakenly bought one thinking it was regular iced tea (spoiler: it’s, um, earthier).
  • Private label manufacturing: KGKG also contracts to produce and package beverages for other brands under private labels, opening a second revenue stream that’s less splashy but often steadier. Think: White-labeling CBD sodas for other startup brands.
  • Distribution partnerships: By inking distribution deals with regional beverage distributors—they’ve made several newsworthy partnerships in the past couple of years—they can push their products into more retail locations across the Midwest and Southeast. According to Beverage Industry News (see 2023 report), this model nearly doubled their monthly sales compared to pre-2021 levels.
  • Merchandising and ancillary wellness goods: The merch angle is real; I saw Kona Gold-branded shirts at a small skate shop in Tampa, and the store manager swore they sell surprisingly well among Gen Z.

Here's How the Numbers Stack Up: A Real Walkthrough

One pitfall in researching OTC (over-the-counter) companies is data transparency. Since KGKG isn’t as heavily regulated as an NYSE giant, you’ll have to dig into their SEC Form 10-Q filings, which you can find here: KGKG Disclosures. Here’s how I reviewed their 2023 third-quarter results:

KGKG 10-Q actual screenshot

When you open the 10-Q, you’ll see a neat product breakdown. For Q3 2023, direct product sales—not private label, not retail promo deals—made up about 74% of total revenue (actual line item: “Net sales of finished beverage products”). If you’re looking for recurring revenue, that’s where it’s at.

But don’t discount the other streams: contracted production accounted for 17% that quarter, and “other revenue” (merch, side products) barely ticked over 6%. I called up an industry contact—Tom, a beverage category analyst who’s not a fan of CBD hype—and he flat-out said: “In niche consumables, whoever owns the label and direct sales will always have the leverage. But contract fulfillment cushions you against slow quarters.”

Case Example: Expanding Sales Channels—It’s Not All Groceries

Let me illustrate with a real event from KGKG’s expansion. In early 2022, after launching their Ooh La Lemin lemonade (don’t bother searching for ‘Ooh La Lemonade’ like I did at first…), KGKG landed a slot in a regional convenience store chain in Texas. Sales spiked for two straight quarters, according to their press release (Yahoo Finance April 2022).

Numbers from that release:

  • 2,000 new retail locations onboarded in 2 months
  • 50% higher sell-through rates on new lemonade SKUs compared to legacy coconut and hemp products

Lesson learned: distribution partnerships can temporarily displace direct sales as the top revenue driver if you grab the right channel at the right moment.

Quick Detour: Why KGKG’s Revenue Mix Is So American (Compared to EU Rules)

Not every country lets companies like KGKG operate so freely in the hemp beverage market. Okay, now indulge me for a hot minute: here’s a table breaking down "verified trade" certification differences across countries—crucial if you think KGKG will expand abroad.

Country Standard Name Legal Basis Primary Agency
US USDA Hemp Rule, FDA Certification 2018 Farm Bill, FDA Guidance USDA / FDA
EU Novel Food Regulation (EU) 2015/2283 European Parliament Rules EFSA (European Food Safety Authority)
Canada Cannabis Act, Natural Health Products Regulations S.C. 2018, c. 16 Health Canada
Australia Therapeutic Goods Administration (TGA) Listing Therapeutic Goods Act 1989 TGA

It matters, because in the US, KGKG can develop a new CBD drink and get it on shelves fast with just USDA/FDA clearance. In the EU? Nope. Products must pass extensive safety/novel food reviews—and the EFSA put a halt on most CBD food approvals in 2022 pending more data, which would make a KGKG expansion sloggy and slow. This bogs down new revenue opportunities—and that’s why, as Tom pointedly notes, “Most of these US beverage outfits keep their international plans on ice.”

Expert Angle: What Really Drives Sustainability?

At a beverage innovation summit in Miami last fall, a panelist directly addressed the craze around fast product roll-out:

“New, shiny launches can boost a quarter’s numbers, sure. But only those with sturdy distributor networks and private label deals weather market lulls. I always tell executives—chase one-off sales too hard, and you’ll be the king of short stacks.” —Mark Feldman, CEO, Beverage Business Journal, Oct 2023

That totally checks out with what I saw digging into KGKG’s filings. Their “other revenue” can spike, but it’s the boring, everyday distribution agreements and manufacturing contracts that provide the floor beneath their profit-and-loss rollercoaster.

Conclusion: So, Should You Care About KGKG’s Revenue Streams?

Here’s my honest takeaway after plowing through financial docs, analyst calls, and more than a few caffeinated drinks: KGKG survives and sometimes thrives thanks to a classic blended approach. Direct beverage sales reign supreme, but the unsung hero is their ability to pivot via private labeling and distributor pushes. In the wild world of hemp-infused beverages—where rules change faster than my willingness to try “relaxation lemonades”—you want a company that isn’t overly reliant on one sales channel.

What’s next? If you want to keep tabs on KGKG (or any company betting big on novel wellness drinks), here’s what I’d do:

  • Follow KGKG’s SEC disclosures and quarterly filings (OTC Markets KGKG Profile).
  • Watch out for any announced international expansion—scrutinize if/how they get EFSA approval before believing the hype.
  • Track new distribution and private label deals; that’s the actual harbinger of stable, recurring revenue.
  • Stay allergic to press-release spin, and always compare “record months” to the long-term mix.

If you’re investing: comfort with fast-changing regulatory backdrops is a must. If you’re just curious: might as well try an Ooh La Lemin next time you see it—just read the label, so you don’t mix it up with old-school lemonade like I did!

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