The deal is part of a larger plan for growth and market expansion, the firm said.
Functional beverage maker Kona Gold Beverages Inc. acquired Covert LLC, a producer of Delta-8, THCa, THC-P, and Kratom products.
The acquisition is expected to enhance Kona Gold’s portfolio and improve its position in the market.
“The company’s branding strategy, designed to transcend various vertical markets, along with plans for continued diversification and market share expansion, positions Covert LLC for unmatched growth,” Kona Gold said in a statement.
Covert LLC has reported annual sales exceeding $5 million and aims to increase its monthly sales to $1 million. The company currently operates in 18 states.
Covert’s founders, Jared Fischer and Elliot Eichler, will continue their leadership roles within the combined entity.
“We are thrilled about this acquisition and the opportunity to join forces,” said newly minted Kona Gold CEO Jared Fischer.
“This partnership is a significant milestone for both companies, and I am confident it will yield immediate and positive outcomes.”
Additionally, Covert LLC plans to launch new products, including a delta-9 drink and a kava vape, which are intended to expand the company’s product offerings.
The acquisition aligns with Kona Gold’s goal of becoming a leader in the functional beverage industry.
“We are fully committed to leveraging our collective strengths to ensure the continuous growth of both Covert and Kona Gold,” said Elliot Eichler, vice president of the combined company. “Our goal is to leave an indelible mark on the industry, setting new standards of excellence and innovation. We’re ready to roll up our sleeves and do whatever it takes to achieve these ambitions and create lasting value for our customers and stakeholders.”
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