Manufacturing Transition Completed, Fresh Inventory Shipping and Distributor Expansion Continuing Across Active Markets

LAKEWOOD, CO / ACCESS Newswire / July 30, 2026 / Kultura Brands, Inc. (OTCID:LTNC) ("Kultura" or the "Company"), previously known as Labor Smart, today provided an operational update regarding a packaging integrity issue affecting certain prior production lots of its flagship Adios ready to drink cocktail brand, as well as the corrective actions completed by the Company and the continued expansion of the brand across its distribution network.

During the course of its commercial rollout, the Company identified intermittent can integrity concerns affecting a limited number of prior production lots. Kultura promptly initiated a comprehensive quality review, placed affected inventory on hold where appropriate and engaged technical specialists and manufacturing partners to determine the root cause. The review included several months of testing, engineering analysis and production validation.

The investigation has been completed, corrective actions have been implemented and the Company has transitioned production to new manufacturing resources. Newly produced inventory has successfully completed the Company's enhanced quality assurance process and is now shipping to distributors and retail accounts.

Although the manufacturing transition temporarily constrained product availability in certain markets, the Company continued to support its distributor and retail relationships throughout the process. Distributor engagement has remained strong, new retail placements have continued to open and active markets are being replenished with fresh inventory. The Company does not expect the completed transition to alter its long-term distribution strategy or national expansion plans.

Kultura has also strengthened its production oversight through expanded preproduction testing, additional in process inspections and enhanced quality control protocols designed to support greater production scale and consistency. Management believes these measures provide a stronger operating foundation as Adios enters additional markets and increases retail penetration.

The Company continues to pursue all available contractual, commercial and other remedies associated with the affected production lots. Those discussions remain active. Accordingly, the Company does not intend to identify individual counterparties or provide further detail regarding potential recoveries until the process has been completed or additional disclosure is appropriate.

"Our response was guided by one standard: protect the integrity of the Adios brand and do what is right for our consumers, distributors and retail partners," said Brad Wyatt, Chief Executive Officer of Kultura Brands. "We took the time required to fully understand the issue, complete the manufacturing transition and strengthen our quality controls before increasing production. Fresh inventory is now moving through the network, distributors remain engaged and new retail accounts continue to open. We believe the steps taken have made our supply chain stronger and positioned Adios to move forward with greater consistency, scale and confidence."

The Company remains focused on disciplined execution, responsible brand stewardship and the continued development of a scalable national platform for Adios.

Kultura Brands, Inc. (OTCID:LTNC) is a consumer products company focused on developing, acquiring and scaling differentiated brands across the beverage and consumer packaged goods sectors. Through disciplined brand development, strategic partnerships and an expanding distribution network, Kultura is building a platform designed to create durable value for consumers, customers and shareholders.

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements regarding future production, inventory availability, distribution expansion, retail placements, manufacturing performance, quality control initiatives, potential contractual or commercial recoveries, market growth and the Company's strategic plans. These statements are based on current expectations, estimates and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include manufacturing and supply chain risks, product quality matters, customer and distributor demand, market acceptance, regulatory developments, the outcome of contractual or commercial disputes, financing availability, competition, general economic conditions and other factors. Readers are cautioned not to place undue reliance on forward looking statements. The Company undertakes no obligation to update or revise any forward looking statement, except as required by applicable law.

SOURCE: Kultura Brands, Inc.