Authentic Brands Archives - Green Market Report

Debra BorchardtJanuary 15, 2019


First, it was shoe chain DSW (NYSE: DSW) that inked a deal with Green Growth Brands to sell CBD products in its stores. Now Tilray. Inc. (NASDAQ: TLRY) has signed a long-term revenue-sharing agreement to market and distribute cannabis products with  Authentic Brands Group (ABG).

ABG houses more than 50 brands including well-known names like Airwalk and Frye shoes, Juicy Couture, Nautica, Nine West, Vince Camuto, and Spyder sportswear. It has a global retail footprint of over 100,000 points of sale and more than 4,500 branded freestanding stores and shop-in-shops. The company noted that ABG generates approximately $9 billion in retail sales annually.

“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.”

Terms Of The Deal

Tilray will be the preferred supplier of active CBD ingredients for products within the portfolio. For example, Spyder which is known for its ski wear also has a line of skin products that include muscle rubs and lip balms. Tilray will be the company behind putting CBD in these products.

The statement read that Tilray will initially pay to ABG $100 million and up to $250 million in cash and stock, subject to the achievement of certain commercial and/or regulatory milestones. In addition to the upfront payment, 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.

ABG Comments

“Tilray’s unyielding focus on science, product quality, operational excellence, and innovation has allowed them to quickly emerge as a leader in the cannabis industry,” said Daniel W. Dienst, ABG Executive Vice Chairman. “We see an 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.”



Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up

About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.