Konared Corp (OTCMKTS:KRED) manufacturer of nutritional supplements and Antioxidant Juices from the exclusive and unique Hawaiian “CoffeeBerry®” coffee fruit from Kona reported that it plans to expand its reach into Japan. It will be the first overseas expansion which will help the company to achieve its objectives of revenue diversification and expanding into the global markets.
Konared has finalized a deal with Asplund Co., Ltd., providing the company with non-exclusive distribution rights for its beverages in Japan. The company had devoted several years in development process, and then has received approval for its product from the Japan’s health regulatory authority. CoffeeBerry® and KonaRed® are registered trademarks in Japan. Konared’s license associate, VDF FutureCeuticals Inc., is the owner of the trademark ‘CoffeeBerry®’ and has patents in Japan for the innovative technology to manufacture company’s coffee fruit beverages.
Konared started that the Japanese market is popular for early adoption of natural nutraceutical and dietary supplements, and therefore holds significant revenue potential. The CEO Shaun Roberts stated that Japan and Hawaii share several close ties, for instance there exists a robust cultural connection. The cuisine boasts a strong Japanese influence. There is a large percentage of the population that is of Japanese descent.
Due to all these leading factors and Japanese focus on living healthy lifestyles, the company expects strong response to its products in the Japanese market. The strategic expansion will acts as a powerful revenue source. The CEO added that the team had worked very hard to venture into the new market. As per Research and Markets, the Asia-Pacific Nutraceutical industry is projected to grow at a CAGR of 7.0% from year 2014 to 2019 due to rising consumer concerns pertaining to health and nutrition.
The loss of 5.71% in the last trading session was more significant for Konared Corp (OTCMKTS:KRED) as the rejection came from the major trendline resistance, as evident from the chart attached. The volume of 3.4 million was way higher than the daily average of 410,000, adding to the bearish sentiment as it hinted towards more selling pressure than any possibility of bullish accumulation at those higher levels. From the larger perspective, the price is in a contraction phase but if that line is not broken on the upside, the price may drop much lower than expected and a break below $0.10 can’t be ruled out in that case.