Gilla Brands Featured on European E-Liquid Kiosk Network

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Accesswire 29-Sep-2016 9:00 AM
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KALISPELL, MT / ACCESSWIRE / September 29, 2016 / Gilla Inc. (OTCQB: GLLA), a manufacturer and marketer of E-liquid for vaporizers, recently announced the signing of a brand distribution agreement with a French based owner of more than 60 E-liquid dispensing kiosks located in France.
The 60 kiosks are all part of a regulatory compliant network, and will sell the Coil Glaze and Craft Vapes brands of Gilla's product portfolio. The products will be sold to the distributor in a bulk, zero nicotine format, at which point it will be placed into the kiosks directly in the retail locations.
The kiosks act very much like those new fountain soda machines where you can add in as much syrup as you want, except in this case it is E-Liquid for your vaporizer. Since new European regulations limit the bottle size to 10 ml, the consumer purchases an empty 100+ ml bottle and then purchases a 10 ml neutral flavored nicotine enhancer. The consumer then adds in the amount of enhancer they want (based on desired nicotine levels), they then go to the auto fill pump, choose a flavor, and fill the remainder of the bottle. A good shake is all that is needed to blend the two liquids, and off the customer goes with their own custom blended E-liquid.
It is anticipated that the kiosks will start selling Gilla product by the end of October 2016, and while the press release states that the kiosks will initially only be located in France, Graham Simmonds (CEO and Chairman of Gilla) does state "Gilla granted the Distributor one-year exclusive distribution rights for the Company's Coil Glaze and Craft Vapes brands for this type of E-liquid dispensing machine in Europe and the UK." This would suggest that within the next year the kiosks would also be located outside of just France, a good sign of planned expansion.
Kiosks Undergoing Resurgence in Popularity
Kiosks are an attractive way to sell product not only for their reduced cost and efficient service, but also for their ability remember the customer and create customer loyalty. According to Loyalty Guide, 90% of consumers in the US are part of a retail loyalty program. Customer loyalty is something that gradually builds up with time, usually stemming from the initial relationship with a brand. In this case, by marketing the Coil Glaze and Craft Vapes brands, Gilla is increasing awareness across their entire product portfolio.
Any number of industries are incorporating kiosks these days, for example you can't even talk to an agent at Delta Airlines (NYSE: DAL) unless you have already visited a check-in kiosk. Kroger Co. (NYSE: KR), the largest grocery store chain in the US, opened an entirely self-checkout store in 2011. In the E-liquid space, Electronic Cigarettes International (OTCQB: ECIG) opened up their first US based "VIP" kiosk at the FlatIron Crossing Mall in Broomfield, Colorado in January.
Conclusion:
Within the last year, Gilla has managed to sign distribution agreements in The Netherlands, France, The United Kingdom, and China; won awards for it's Coil Glaze E-liquid on multiple occasions; expanded their product portfolio to 14 brands; posted their first $1 million quarter in revenue, all while increasing gross margins to 62% in Q2 2016.
For additional information on Gilla please visit http://gilla.com/?page_id=4124
Disclaimer:
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Tamarack Advisors is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice.
SOURCE: Tamarack Advisors