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What does legendary Australian golfer Greg Norman have to do with Cannabis?
4 minute read
Even Abercrombie & Fitch (NYSE:ANF) is getting in on the cannabis product action.
That’s right, the American retailer with the best abs in the business, has expanded its partnership with Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) and will trial GGB’s Seventh Sense Botanical Therapy products in 10 Abercrombie & Fitch stores.
The retail giant now carries CBD products in more than 160 A&F stores.
The expansion includes Seventh Sense's CBD-infused body lotions, muscle balms, lip balms and sugar scrubs, and is Green Growth Brands' second major wholesale agreement since the passage of the Agriculture Act of 2018 in December 2018.
"Abercrombie & Fitch understands how to connect with their target-customer, not just in the US but across the globe," said Green Growth Brands CEO, Peter Horvath. "They have incredible brand recognition in our current target markets and beyond, and we are excited at the prospect of building our partnership together."
Abercrombie & Fitch operates in more than 250 locations (includes abercrombie kids) worldwide as of the end of Q1 2019 and for more than 125 years has outfitted innovators, explorers and entrepreneurs.
A move into CBD-related accessories and products reflects the updated attitude of the modern consumer.
It’s not the first time, Green Growth Brands has linked up with unlikely sources.
Legendary Australian golfer, Greg Norman is also in the mix.
GGB has a licensing agreement with the Greg NormanTM Brand to develop a line of CBD-infused personal care products designed for active wellness.
Norman doesn’t choose his partners lightly. He has cultivated his own brand, beyond the golf course, for the past 30 years. His brands are elite: his wine has been a staple of the ‘Top 100 Wines in the World’ list for many years, with his 1999 Reserve Shiraz ranked eighth in the world.
Then there is his relationship with Authentic Brands Group (ABG).
In 2017, Norman was paid an undisclosed sum by ABG for them to become a controlling partner the direction of the consumer products division of The Greg Norman Company, whose brands include those in real estate, eyewear, gold car fleets, a restaurant, specialty and game meats partners, a clothing line established by Reebok and a recently opened (June 15) water park complex. Sifting through these ventures, you get a sense of, not only how entrepreneurial Norman man is, but the level of partnerships he has curated.
As Forbes reported, “Hall-of-fame golfer Greg Norman is celebrating the thirty-year anniversary of The Greg Norman Company with the announcement of a strategic partnership that is intended to evolve his brand, reach new audiences and expand his portfolio. The partnership is with Authentic Brands Group (ABG), which works with the likes of Shaquille O'Neal, Dr. J and Muhammad Ali on their iconic brands.”
Ergo, Norman, the Delta Private Jets brand ambassador, must see something in GGC to affiliate himself with them.
The ABG cannabis connection
ABG owns and operates over 50 brands, among them is its strong relationship with $4.5 billion capped cannabis giant Tilray.
ABG and Tilray signed a long-term revenue sharing agreement to market and distribute a portfolio of consumer cannabis products within ABG’s brand portfolio in jurisdictions where regulations permit.
Under the terms of the agreement:
- The parties will leverage ABG’s portfolio of brands to develop, market and distribute consumer cannabis products across the world, as and where legal, with an immediate focus on opportunities, including CBD, in Canada and the U.S. subject to applicable and brand appropriate regulations.
- Tilray will be the preferred supplier of active cannabinoid ingredients for such products.
- Tilray will initially pay to ABG US$100 million and up to US$250 million in cash and stock, subject to the achievement of certain commercial and/or regulatory milestones.
- Tilray will have the right to receive up to 49% of the net revenue from cannabis products bearing ABG brands, with a guaranteed minimum payment of up to US$10 million annually for 10 years, subject to certain commercial and/or regulatory milestones.
“We are thrilled to partner with ABG, a global leader known for expertly managing and marketing an owned portfolio of iconic brands,” said Brendan Kennedy, Tilray President and CEO. “As we work to expand Tilray’s global presence, this agreement leverages our complementary strengths and will be accretive to our shareholders as we reach new consumers across the entertainment, fashion, beauty, home and health and wellness sectors. We look forward to working with ABG to bring unique and sought-after branded cannabis products to the marketplace.”
Daniel W. Dienst, ABG Executive Vice Chairman, said, “We see extraordinary potential for cannabis in the fast-growing health and wellness category – particularly for CBD products in the United States and around the world - and are excited about this long-term partnership.”
The Norman connection gives ABG a further foothold in the lifestyle cannabis industry. And if anyone knows lifestyle, it’s the Great White Shark.
Note: Photos in this article are sourced from http://shark.com/